Don't settle for ordinary quarterly reports.
Every week I take a look at three companies that beat market expectations, 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 Wolverine World Wide (NYSE: WWW ) . The footwear maker may not be growing as quickly as speedier rivals Deckers (Nasdaq: DECK ) and Crocs (Nasdaq: CROX ) , but it's certainly moving faster than Wall Street's targets. Wolverine's quarterly profit of $0.82 a share ran past the $0.75 a share that the pros were projecting.
This isn't anything new for Wolverine shareholders. The company behind rugged Merrell hiking footwear and the more casual Hush Puppies has landed ahead of analysts in each of the past seven quarters.
Marriott (NYSE: MAR ) also checked in ahead of the prognosticators. The global hospitality giant earned $0.29 a share in its latest quarter, well ahead of both the $0.22 a share it rang up a year earlier and the $0.27 a share that Mr. Market was expecting. Despite the logical concerns that a global economic slowdown will also slow the inflow of Marriott's corporate travelers and casual tourists, it's certainly hanging in there on the bottom line.
Finally we have Team (Nasdaq: TISI ) coming out a winner after another strong quarter. Acquisitions may have helped the industrial services provider for the energy market post a 35% top-line gain, but organic revenue growth still clocked in at an impressive 28% rate. Moving down the income statement, Team's profitability of $0.33 a share blew away forecasts for quarterly net income of $0.25 a share.
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 we look for in the Rule Breakers newsletter service. Want in? Check it out with a 30-day trial subscription.
Either way, come back next Monday to learn about more stocks that blew the market away.
If you want to track these stocks to see if they come out ahead next quarter, add them to My Watchlist:
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