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: Medidata Solutions (Nasdaq: MDSO) popped 11% in intraday trading today as buyers stepped in following last week's plunge.

So what: Last Tuesday, the stock plunged after the company forecast 2011 revenue of $180 million to $188 million, compared with a consensus forecast of $188 million. It said that the loss of a contract with the National Cancer Institute late last year will hurt 2011 revenue by $4.8 million.

Now what: While there is a risk that the contract loss signals the beginning of a bad trend, the company walloped EPS expectations for the most recent quarter. It delivered EPS of $0.71, well over twice the consensus estimate of $0.26 and more than four times EPS in the year-ago quarter. With analysts projecting EPS growth of 92% in the current quarter, investors seem to believe that kind of EPS growth more than justifies the forward P/E ratio of 17.2.

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