Watson Pharmaceuticals: S&P Gainer

NEW YORK ( TheStreet) - Watson Pharmaceuticals ( WPI) was among the best performers in the S&P 500 on Thursday.

The S&P 500 fell 10.11 points, or 0.72%, on Thursday to close at 1,392.78. It was the index's third straight down day, and its first finish below 1400 in five sessions.

Shares of Watson rose 3.78% to $66.10. The company is reportedly in talks to acquire Swiss generic drug manufacturer Actavis.

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

Watson shares trade at an estimated price-to-earnings ratio of 10.81X; the average for pharmaceutical companies is 36.08X. For comparison, Mylan ( MYL) has a lower forward P/E of 8.63X; Perrigo's ( PRGO) forward P/E is 19.04X.

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 9.55% year to date.

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Other top S&P 500 performers Thursday include:
  • Western Digital (WDC): The stock rose 6.62% Thursday to $42.06. The stock has increased 35.9% year to date. TheStreet Ratings gives Western Digital a B- grade with a buy rating and $44.89 price target.
  • Discover Financial Services (DFS): The stock increased 2.69% Thursday to $32.49. The stock has risen 35.38% year to date. TheStreet Ratings gives Discover Financial Services an A- grade with a buy rating and $42.03 price target.
  • Starbucks (SBUX): The stock rose 2.59% Thursday to $55.21. The stock has increased 20% year to date. TheStreet Ratings gives Starbucks an A+ grade with a buy rating and $69.65 price target.
  • Constellation Brands (STZ): The stock increased 2.41% Thursday to $23.37. The stock has risen 13.06% year to date. TheStreet Ratings gives Constellation Brands a B grade with a buy rating and $26.21 price target.
  • First Solar (FSLR): The stock rose 2.35% Thursday to $26.95. The stock has fallen 20.17% year to date. TheStreet Ratings gives First Solar a C- grade and hold rating.
  • Urban Outfitters (URBN): The stock increased 1.89% Thursday to $29.05. The stock has risen 5.41% year to date. TheStreet Ratings gives Urban Outfitters a B- grade with a buy rating and $32.32 price target.
  • Beam (BEAM): The stock rose 1.89% Thursday to $58.28. The stock has increased 13.76% year to date. TheStreet Ratings gives Beam a B- grade with a buy rating and $64.03 price target.
  • Forest Laboratories (FRX): The stock increased 1.86% Thursday to $33.96. The stock has risen 12.23% year to date. TheStreet Ratings a B+ grade with a buy rating and $39.05 price target.
  • Limited Brands (LTD): The stock rose 1.81% Thursday to $49.01. The stock has increased 21.46% year to date. TheStreet Ratings gives Limited Brands a B grade with a buy rating and $62.38 price target.

-- Written by Alexandra Zendrian in New York.

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