Sector Watch: Health-care information stocks

Caps on Medicare and Medicaid reimbursement are requiring health-care providers to manage costs more effectively, spurring demand for software systems marketed by MedAssets (Nasdaq:MDAS) and Quality Systems, Inc. (Nasdaq:QSII).

Sector Watch: Medical equipment stocks

With medical equipment stocks up about 6.3% year-to-date, manufacturers Somanetics Corporation (Nasdaq:SMTS) and CryoLife, Inc. (NYSE:CRY) both have unusually clean bills of health in today’s market.

Sector Watch: Business software stocks

With the advent of the Internet, the world may seem small, but the market for protecting it is vast, which bodes well for Integral Systems (Nasdaq:ISYS) and Mantech International Corporation (Nasdaq:MANT).

Industrial equipment stocks ride oil wave

Companies that manufacture drilling equipment are gushing earnings because of drilling activity fueled by record oil prices. T-3 Energy Services, Inc. and Circor International are two small caps riding the wave.

Sector Watch: Precision instrument stocks

Precision is important in any business endeavor -- just ask Axsys Technologies (Nasdaq:AXYS), Argon ST (Nasdaq:STST) and Badger Meter Inc. (NYSE:BMI).

Sector Watch: Home health-care stocks

Many of today’s elderly, disabled or ailing may not choose to spend countless months in hospitals or clinics. Now they have the option of in-home care by companies including Almost Family Inc. (Nasdaq:AFAM), Gentiva Health Services Inc. (Nasdaq:GTIV) and LHC Group, Inc. (Nasdaq:LHCG).

Sector Watch: Biotech stocks

Biotechnology investments often offer big risks, but huge potential rewards. New drugs, such as ones in development by Emergent BioSolutions (NYSE:EBS) and ChemGenex (Nasdaq:CXSP), can provide multi-billion dollar payoffs once sales commence.

Sector Watch: Coal stocks

While much attention is focused on soaring oil, coal has followed a similar trajectory with prices up more than 60% this year, benefiting James River Coal Company (Nasdaq:JRCC) and National Coal Corp. (Nasdaq:NCOC).

Sector Watch: Drug delivery stocks

Two relatively recent entrants into the war on prescription drugs are Acura Pharmaceuticals (Nasdaq:ACUR) and Columbia Laboratories (Nasdaq:CBRX).

Sector Watch: Waste management stocks

If the state of the current market has you down in the dumps, look no further than waste management companies American Ecology Corp. (Nasdaq:ECOL) and Casella Waste Systems, Inc. (Nasdaq:CWST).