Varian Among Healthcare's Biggest Movers on October 26, 2012

The market is having a bad day so far: the Nasdaq has slipped 0.1%; the S&P 500 has declined 0.2%; and the Dow is trading down 0.1%. The healthcare sector is the category of stocks relating to medical and healthcare goods or services. This sector includes hospital management firms, health maintenance organizations (HMOs), biotechnology and a variety of medical products. Stocks in the healthcare sector are often considered to be defensive because the products and services are essential. Even during economic downturns, people will still require medical aid and medicine to overcome illness. Having a consistent demand for goods and services makes this sector less sensitive to business cycle fluctuations.

The Healthcare sector (XLV) is currently lagging behind the overall market, down 0.2%, and its current biggest movers are:

Company	Market Cap	Percentage Change
HMS (Nasdaq:HMSY)	$2.32 billion	-21.6%
Varian (NYSE:VAR)	$6.43 billion	+16.6%
IPC The Hospitalist Company (Nasdaq:IPCM)	$697.4 million	-16.3%
ImmunoGen (Nasdaq:IMGN)	$1.16 billion	-12.7%
LifePoint Hospitals (Nasdaq:LPNT)	$1.96 billion	-7.6%
Endologix (Nasdaq:ELGX)	$809.3 million	+6.8%
Magellan Health Services (Nasdaq:MGLN)	$1.32 billion	+5.3%

Broker Summary: OptionsXpress Online Trading Platform

HMS (Nasdaq:HMSY) is at a share price of $21.11 after a sharp decline of 21.6%. The company's volume for the day so far is 4.5 million shares. This is 5.1 times the average daily volume.

Varian (NYSE:VAR) rose a significant 16.6% to reach $67.73 per share. At 2.9 million shares, the company's volume so far today is more than yesterday's 2.1 million shares.

Taking a 16.3% hit, IPC The Hospitalist Company (Nasdaq:IPCM) is currently trading at $35.05 per share. The company is currently trading a volume of 364,761 shares.

After a precipitous drop of 12.7%, ImmunoGen (Nasdaq:IMGN) is now trading at a share price of $12.03. The company's volume for the day so far is 1.4 million shares, 3.2 times the average volume over the last three months.

Slipping 7.6%, LifePoint Hospitals (Nasdaq:LPNT) is currently trading at $36.99 per share. This morning, the company's volume is one million shares. This is 5.1 times its current daily average.

Rising 6.8%, Endologix (Nasdaq:ELGX) is currently trading at $14.09 per share. This morning, 670,469 shares have been traded, which is more trading activity than there was yesterday.

Magellan Health Services (Nasdaq:MGLN) has increased to a share price of $50.60, a 5.3% rise. This morning, the company is trading a volume of 105,945 shares.

The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. It is important to weigh current activity against historical performance when making any investment decisions. Tools like valuation ratios and profit margins, however, are only as useful as the context you put them in; remember to take historical data and competitor performance into account.