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 pros over the past few trading days.
We can start with SYNNEX
"SYNNEX investors should be used to landing well ahead of the prognosticators," I wrote the day before the IT supply chain specialist's quarterly report. "The company has beaten analyst profit targets for 16 quarters in a row. Given the trend, it would be a shock if SYNNEX actually only earned $1.14 a share tomorrow."
Indeed. SYNNEX blew that target out of the water, earning $1.37 a share instead.
Schnitzer Steel
How did last week's quarter play out? Well, despite a 20% surge in revenue, squeezed margins saw profitability clock in at $0.25 a share. Schnitzer had earned $0.64 a share a year earlier. However, Wall Street figured that the steel company would earn just $0.22 a share this time.
Finally, we have VOXX
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.