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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 TIBCO Software (Nasdaq: TIBX  ) . The enterprise software clocked in with a profit of $0.42 a share, well ahead of the $0.35 a share that analysts were projecting. TIBCO also offered up rosy guidance. The report is a welcome contrast to Oracle (Nasdaq: ORCL  ) , the enterprise software giant that delivered a rare miss on the bottom line.

Cintas (Nasdaq: CTAS  ) also dressed up nicely for its quarterly portrait. The leading provider of branded workforce uniforms saw its quarterly net income soar 50% to $0.57 a share. Wall Street figured that Cintas would only be good for earnings of $0.48 a share.

A strong report out of Cintas is a good sign for Corporate America. If companies are ordering up more pressed uniforms with embroidered logos it may indicate that hiring is on the upswing. However, Cintas is just one bellwether. Office furniture specialists Herman Miller (Nasdaq: MLHR  ) and Steelcase (NYSE: SCS  ) posted less than inspiring quarterly results.

Finally we have Shuffle Master (Nasdaq: SHFL  ) dealing shareholders a good hand. The maker of automatic card shufflers and other casino equipment hit on $0.18 a share in fiscal fourth-quarter profitability. Analysts were forecasting net income of $0.17 a share after Shuffle Master's bottom-line showing of $0.14 a share a year earlier.

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. If that's not up your alley just yet, you can still check out a free special report detailing the next trillion-dollar revolution.

Either way, come back next week to learn about more stocks that blew the market away in the coming days.

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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.

The Motley Fool owns shares of Oracle. Motley Fool newsletter services have recommended buying shares of TIBCO Software and Cintas. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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Related Tickers

5/25/2012 4:00 PM
TIBX $28.30 Down -1.26 -4.26%
TIBCO Software, In… CAPS Rating: ****
SHFL $15.86 Up +0.38 +2.45%
Shuffle Master CAPS Rating: ***
CTAS $37.31 Down -0.41 -1.09%
Cintas CAPS Rating: *****
SCS $8.59 Up +0.18 +2.14%
Steelcase CAPS Rating: ****
ORCL $26.14 Up +0.02 +0.08%
Oracle Corp. CAPS Rating: ****
MLHR $18.36 Down +0.00 +0.00%
Herman Miller, Inc… CAPS Rating: *****

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