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.

Interested in more info on Medidata? Add it to your watchlist by clicking here.

Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.