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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 Chipotle Mexican Grill (NYSE: CMG ) . The burrito roller served up an adjusted quarterly profit of $1.97 a share, 35% ahead of last year's showing and comfortably ahead of the $1.93 a share that the pros were projecting.
Then again, things have a funny way of going right for the chain of 1,265 quick-service eateries when comps soar 12.7% and Chipotle's able to tackle food inflation with menu price hikes of its own.
Intuitive Surgical (Nasdaq: ISRG ) also made the cut. The robotics specialist behind the da Vinci surgical arm that's revolutionizing many procedures busted out with a quarterly profit of $3.50 a share. Wall Street was settling for net income of $3.14 a share.
Finally, we have E*TRADE (Nasdaq: ETFC ) movin' on up. Investors saw larger discount brokers TD AMERITRADE (Nasdaq: AMTD ) and Charles Schwab (NYSE: SCHW ) merely meet analyst estimates earlier in the week, but along came the cleverly marketed discounter with a profit of $0.13 a share when the market was banking on just $0.09 a share on the bottom line.
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 blow the market away in the coming days.