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.