Watson Pharmaceuticals (WPI): S&P Intraday Gainer

NEW YORK ( TheStreet) -- Watson Pharmaceuticals ( WPI) was the best-performing stock in the S&P 500 Thursday morning.

The S&P was down 9.68 points, or 0.68%, to 1,393.21 early Thursday.

Shares of Watson rose 4.99% to $66.87. The company is reportedly in talks to acquire Swiss generic drug manufacturer Actavis.

Watson was also wasthe top performer in the S&P 500 on Wednesday; it gained 8.82% that day.

Watson has an estimated price-to-earnings ratio of 10.84 times; the average for pharmaceutical companies is 31.84. For comparison, Mylan ( MYL) has a lower forward P/E of 10.84; Perrigo's ( PRGO) forward P/E is 18.78.

Eighteen of the 25 analysts who cover Watson rated it buy; seven analysts gave the stock a hold rating.

TheStreet Ratings gives Watson a B+ grade with a buy rating and a $76.90 price target. The stock has risen 10.67% year to date.

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-- Written by Alexandra Zendrian

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