The Magpies crashed out of the FA Cup after Troy Deeney’s goal split the two teams at Vicarage Road on Saturday.
It was yet another frustrating afternoon for boss Steve McClaren, and now attentions will turn back to their league campaign where they currently occupy a place in the relegation zone.
In spite of their precarious position, however, Watford boss Sanchez feels his side’s recent opponents boast an amazing squad and hinted at a lack of confidence being behind their struggles.
“Newcastle is an amazing team," the former Atletico Madrid boss said. "They have amazing players, amazing strikers. They have power, velocity and players of high technical (ability).
“Newcastle have a good trainer and well-respected coach. But in football sometimes you have a squad of good quality and the results are not good and they are nervous and not completely confident.”
Newcastle just cannot seem to get going and for every positive result – wins over Norwich City, Liverpool and Tottenham Hotspur – a disappointment is only just around the corner.
McClaren boasts an abundance of talent with Ayoze Perez, Aleksandar Mitrovic, Georginio Wijnaldum and Moussa Sissoko the pick of the bunch in terms of attacking talent.
However, goals have been hard to come by for the Magpies and without an addition or two in January they could find themselves in deep trouble come the end of the season.