Volume Hunter: Healthcare Stocks (FVE, ODSY, ALC, GTIV, ESRX, CVS, MRGE, ICAD, AIQ, VAR)

Given the multitude of segments in the healthcare sector, it can be difficult for investors to quickly hone in on the right stocks to fit various short-term theses. For active traders, liquidity is a top priority, but a simple volume sort often leaves some of the more volatile or tradable stocks near the bottom. However, by scanning the sector as a whole, and focusing on relative volume among individual equities, traders can find which segments are moving, and which stocks have substantive catalysts behind a rally or decline.

As a whole, the Healthcare SuperIndex is composed of 33 subsector Indexes ranging from swine flu stocks to pharmacy benefit managers. Today, performance is mixed among segments, but a few have managed to push ahead by more than 1.5%.

A look at the Extended Care Provider Stocks Index shows that Five Star Quality Care (FVE) is ahead by more than 20% on a notable relative volume spike, as indicated by the ‘% of Daily’ metric. Five Star posted 21 cents in second-quarter EPS after the bell yesterday, topping analyst consensus by 12 cents and earning an upgrade to Buy from Neutral at Davenport.

Elsewhere in the segment, Odyssey HealthCare (ODSY), Assisted Living Concepts (ALC), and Gentiva Health Services (GTIV) are also ahead on above-average volume for the session, while much of the sector “floats” in either direction on thin volume.

Meanwhile, Express Scripts (ESRX) is ahead by 6% today after beating analysts’ EPS consensus by a penny after yesterday’s close. The company posted net income of $307.3 million or 56 cents per share in the second quarter compared to $192.3 million or 37 cents per share in the same quarter last year. After excluding certain items, the firm posted 60 cents in adjusted EPS. The stock is leading the Pharmacy Benefit Manager Stocks Index higher for the session while CVS Caremark (CVS) gives back a portion of yesterday’s earnings rally.

The Radiology Stocks Index is also a top performer among healthcare subsectors in today’s session. While Merge Healthcare (MRGE) and Icad (ICAD) are the Index’s top performers, Alliance HealthCare Services (AIQ) and Varian Medical Systems (VAR) are moving on the highest relative volume. Both of the latter posted quarterly results after yesterday’s close.

Tags: AIQ, ALC, CVS, ESRX, FVE, GTIV, ICAD, MRGE, ODSY, VAR