People watch stocks for different reasons -- they're waiting for a dip in price, watching for a specific catalyst, gathering all the news and information that might affect stocks they already own, or considering a sell. Regardless of their motivation, we can better understand market sentiment by seeing who's watching what. With the Fool's free My Watchlist service, we have tens of thousands of people telling us the businesses that have, for whatever reason, piqued their interest.

The most-watched Pharmaceutical stock is ...
Looking at the aggregate data, we see that Johnson & Johnson (NYSE: JNJ) is above the rest in terms of watch interest, the percentage of people keeping an eye on pharmaceutical stocks in general who are specifically watching each company. And for good reason: As CAPS player TheSmelloscope wrote in January:

-P/E is at a 13% discount to it's 5 year average
-P/E is at a 24% discount to it's competitors
-Greater Total Current Assets than Total Liabilities
-Reasonable long term debt
-A low and stable debt to equity ratio
-Short interest (as a percentage of float) less than 1%
-Price to free cash flow is better than the industry average
-A very solid track record of dividend increases with a better than average yield
-A book value per share which has been increasing over the last 5 years
-Profit margin is stable and beating it's 5 year average
-ROE% and ROA% are stable over the last 5 years and are higher than the industry averages

Here are the rest of the top fifteen most-watched companies in the industry with their watch interest along with the stocks' CAPS rating to show the sentiment of our investing community.


Market Cap 
(in millions)

CAPS Rating 
(out of 5)

Watch Interest


Johnson & Johnson $163,020 **** 26.4%


Pfizer (NYSE: PFE) $162,861 *** 12.5%


Abbott Laboratories (NYSE: ABT) $76,404 ***** 10.1%


Merck $101,957 **** 7.6%


Teva Pharmaceutical (Nasdaq: TEVA) $45,446 **** 7%


Bristol-Myers Squibb $45,106 **** 5.1%


Eli Lilly $40,507 **** 4.8%


GlaxoSmithKline $97,760 **** 4.6%


Dr. Reddy's Laboratories $6,390 **** 1.7%


Novo Nordisk $71,900 **** 1.5%


Sanofi-Aventis $93,550 ***** 1.3%


Elan (NYSE: ELN) $4,060 **** 1.1%


Warner Chilcott (Nasdaq: WCRX) $6,090 ** 1%


VIVUS (Nasdaq: VVUS) $517 ** 0.9%


AstraZeneca $64,430 **** 0.9%

Source: Motley Fool, Motley Fool CAPS.

Whether you're keeping an eye on the industry stalwarts like Johnson & Johnson or are watching an up-and-comer like Dr. Reddy's Laboratories, it pays to watch. We can help you keep tabs on your companies with My Watchlist, our free, personalized stock tracking service. Click here to start now.