3 Stocks That Blew the Market Away

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Don't settle for ordinary quarterly reports.

Every week I take a look at three companies that beat market expectations, 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 SUPERVALU (NYSE: SVU  ) . The grocer served up an adjusted profit of $0.38 a share in its fiscal fourth quarter, just ahead of the $0.35 a share that Wall Street was targeting.

Things aren't perfect at SUPERVALU. Sales and comparable-store sales both slipped during the period. It still posted a loss for the entire fiscal year. Cheap-chic department store chain Target (NYSE: TGT  ) is moving away from SUPERVALU as its grocer and toward a self-distribution model. However, an encouraging outlook and the stock's cheap valuation was enough to send the shares 25% higher last week.

Mattress Firm (Nasdaq: MFRM  ) was also a form-fitting winner. The bedding retailer with arguably the best name among publicly traded companies scored a profit of $0.56 a share, roughly tripling the $0.19 a share that Wall Street was resting on. Upbeat guidance and a market-widening acquisition should continue to give shareholders pleasant dreams.

JPMorgan Chase (NYSE: JPM  ) kicked off the earnings season for the wave of banking giants that will be reporting in the coming days with its report on Friday. The financial services giant posted a profit of $1.31 a share, easily besting the $1.18 a share that the pros were -- wait for it -- banking on.

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 JPMorgan Chase and SUPERVALU. Motley Fool newsletter services have recommended buying calls on SUPERVALU. 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.

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Related Tickers

10/21/2016 12:59 PM
JPM $68.34 Up +0.08 +0.12%
JPMorgan Chase CAPS Rating: ****
MFRM $0.00 Down +0.00 +0.00%
Mattress Firm Hold… CAPS Rating: *
SVU $4.52 Up +0.06 +1.23%
SuperValu CAPS Rating: **
TGT $68.18 Up +0.47 +0.69%
Target CAPS Rating: ***