Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of health insurer Coventry Health Care (NYSE: CVH) plunged 11% on Friday after its quarterly results and outlook disappointed Wall Street.

So what: Coventry's first-quarter revenue jumped 21%, but a bottom-line miss -- adjusted EPS of $0.62 versus the consensus of $0.66 -- is triggering worries over its long-term profitability. While Coventry's overall Medicaid plans nearly doubled, higher costs associated with its low-income demographic are overshadowing that growth.

Now what: Looking ahead, management reaffirmed its 2012 EPS outlook of $3.10-$3.30 per share, versus Wall Street's view of $3.26. "We are optimistic about the future and our positioning to seize opportunities across our diversified businesses," Chairman and CEO Allen Wise reassured investors. With the stock now off about 20% from its 52-week high and trading at a forward P/E of eight, Coventry seems cheap enough to buy into that bullishness.

Interested in more info on Coventry? Add it to your watchlist.