Hornets beat sorry Potters
First half goals by Heidar Helgusson (pictured) and Neil Cox were enough for Ray Lewington's side to take the three points at the Britannia Stadium.
The Potters did reply late on through striker Tommy Mooney but it was not enough as Stoke continue to struggle since the departure of former boss Steve Cotterill to Sunderland and potential replacement George Burley watching from the stands.
Sheffield United dropped a place to fifth after a 2-1 defeat at Derby County, despite going in front through a Shaun Murphy goal mid-way through the first half.
However, an Izale McLeod equaliser nine minutes before the break set up Deon Burton to score with four minutes remaining in the match.
It was the Jamaican international's first goal since returning from injury as John Gregory's men took three much-needed points at Pride Park with their first win in six matches.
Terry Yorath's woes as Sheffield Wednesday boss continued as his side dropped to a 1-0 home defeat against Millwall.
Veteran striker Steve Claridge scored the winner at Hillsborough in the first half as The Owls remain in trouble at the bottom of the table while Mark McGhee's side push further away from the relegation danger zone with the victory.
Click below for match stats:
Division One
Derby County 2-1 Sheffield United
Sheffield Wednesday 0-1 Millwall
Stoke City 1-2 Watford
Click here for an updated Division One table.