3 Stocks That Blew the Market Away

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 Spectrum Pharmaceuticals (Nasdaq: SPPI  ) . The nascent drugmaker posted a quarterly profit of $0.34 a share, more than three times the $0.11 a share that pros were targeting. Spectrum was helped by brisk sales of its Fusilev, a drug used to combat the side effects of chemotherapy. It was a good week for small yet profitable drug upstarts since Neurocrine Biosciences (Nasdaq: NBIX  ) also earned roughly triple what Wall Street was expecting.

Garmin (Nasdaq: GRMN  ) shares rocked to a new 52-week high after a blowout quarter. Analysts figured the GPS giant would earn $0.50 a share after posting net income of $0.70 a share a year earlier. It came through with a profit of $0.71 a share. Strength in fitness, aviation, and outdoor products wasn't enough to grow Garmin's revenue, which declined by 4%, but it is helping wean Garmin off its once flagship GPS gadgetry for drivers.

Finally, we have Sirius XM Radio (Nasdaq: SIRI  ) . The satellite radio giant's profit of $0.02 a share may not seem like much, but that's what happens when you have 6.5 billion shares outstanding. The important takeaway here is that it was twice as much as what Wall Street watchers were projecting. 

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.

If you want to track these stocks to see if they come out ahead next quarter, add them to MyWatchlist:

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Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.


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  • Report this Comment On November 07, 2011, at 9:13 PM, HWY216 wrote:

    Rick,

    Thanks for the mention of SPPI. I have ridden the rollercoaster long this stock for awhile and am grateful to see that it is making progress.

    Am awaiting the 11/20 FDA decision on dropping the Zevalin bioscan. That decision should move the stock one way or another.

    Longer term, 2012 should be telling for their Phase 3 drugs Apaziquone & Belinostat. 4 marketable drugs in the stable should make Spectrum Pharmaceuticals a legitimate player in their industry.

    I wish them all the success in the world!!

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