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Don't settle for ordinary quarterly reports.
I take a look at three companies that beat market expectations every week, since I believe that it's the biggest factor in a stock beating the market. Leaving Wall Street's pros with stunned expressions can be a good thing. It usually means that the companies have more in the tank than analysts figured. Capital appreciation typically follows.
Let's take a look at a few companies that humbled the prognosticators over the past few trading days.
We can start with Bed Bath & Beyond (Nasdaq: BBBY ) . The housewares retailer mopped the floor with analyst prognostications. The superstore chain earned $1.12 a share in its latest quarter, well ahead of both the $0.86 a share it earned a year earlier and the $0.97 a share that the pros were targeting.
Bed Bath & Beyond is also forecasting 10%-15% in earnings-per-share growth for the year ahead, more than investors were expecting. It's apparently a good time to specialize in soft goods, with Pier 1 Imports (NYSE: PIR ) also posting strong results last week.
Immucor (Nasdaq: BLUD ) is another Wall Street thumper. The maker of blood-testing equipment tapped Mr. Market's vein by earning $0.32 a share in its fiscal third quarter. Analysts figured that Immucor would earn slightly less than the $0.28 a share it posted during last fiscal year's third quarter.
Finally, we have MSC Industrial Direct (NYSE: MSM ) beefing up its bottom line. A refreshing 22% top-line pop helped the industrial goods retailer clock in with net income of $0.78 a share. The pros figured that MSC would only earn $0.70 a share for the period.
It's important to keep watching the companies that surpass expectations. Over time, it will be a lucrative experience for investors as the market rewards the overachievers. That's the kind of surprise that we look for in the Rule Breakers newsletter service. Want in? Check out a 30-day trial subscription.
Either way, come back next Monday to learn about more stocks that blew the market away.