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3 Stocks That Blew the Market Away

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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 pros over the past few trading days.

We can start with Oracle (Nasdaq: ORCL  ) . The enterprise software behemoth came through with a profit of $0.62 a share, ahead of both last year's earnings of $0.54 a share and the $0.56 a share that Wall Street was forecasting.

The news gets even better for Oracle as CEO Larry Ellison's outlook for adjusted profitability for the current quarter is also ahead of where the pros are perched. Oracle has historically been very conservative with its guidance, so this is a good omen leading up to what will likely be another quarterly beat out of the company.

Cintas (Nasdaq: CTAS  ) also overdressed. The country's leading provider of workplace uniforms and other corporate consumables came through with a quarterly profit of $0.58 a share, crushing the $0.52 a share that Wall Street was targeting.

Finally we have FedEx (NYSE: FDX  ) hitting the ground running. Delivery rival UPS (NYSE: UPS  ) was the media grabber last week after its $6.8 billion deal for TNT Express, opening the door for some serious European expansion. However, FedEx was no slouch after reporting that adjusted income more than doubled to $1.55 a share.

Analysts were banking on FedEx earning just $1.35 a share for the quarter.

Now take a step back and put these three reports together. What does it tell you about the state of corporate America when a business software giant, a uniform provider, and a delivery speedster crank out better-than-expected bottom-line results during the same week? Keep smiling.

Moving in the right direction
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.

If these three victors aren't enough, check out a new report that reveals three hidden winners in a booming niche that will only get bigger in the future. It's a free report, so check it out soon.

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

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.

Read/Post Comments (1) | Recommend This Article (1)

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 26, 2012, at 1:10 PM, dwains wrote:

    The market does not seem to share you enthusiasm for ORCL.

    Yes they announced good numbers and the market promptly spanked them with loss of 2.2 on Wednesday.

    I hold this stock and to be frank, I am getting a little tired of performances like this. If it were not for the pile of cash they are sitting on (that belongs to the shareholders - note to Larry) I would be out of this dog.

    Hopefully they will start paying a reasonable dividend soon.

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