By
Rick Aristotle Munarriz
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November 21, 2011
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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 ZAGG (Nasdaq: ZAGG ) . The maker of third-party accessories for smartphones and tablets posted an adjusted profit of $0.16 a share after backing out items related to its recent iFrogz acquisition. Analysts figured that ZAGG would only earn $0.07 a share.
Blue Coat Systems (Nasdaq: BCSI ) also dressed the part of a market beater. The data security firm earned $0.20 a share in its latest quarter, ahead of the $0.13 a share that the pros were targeting. Blue Coat's report didn't have a positive impact on rivals Websense (Nasdaq: WBSN ) and F5 Networks (Nasdaq: FFIV ) , but it should have. Blue Coat's strong report -- after coming up short in its past few quarters -- was the result of the company being able to do business by offering fewer discounts than usual. If clients are willing to pay up to keep their networks secure, it should bode well for the niche.
Finally we have Navios Maritime (NYSE: NM ) coasting along nicely. The Greek shipping and logistics company squeezed out a profit of $0.16 a share in its latest quarter. Greece-shy analysts were only expecting a profit of $0.12 a share from the high-yielding company.
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 My Watchlist:
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