Don't settle for ordinary quarterly reports.
I take a look at three companies that beat market expectations every week, as I believe that's the biggest factor in whether a stock beats 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 ZAGG (Nasdaq: ZAGG ) .
The maker of the invisibleSHIELD screen protector for portable touchscreen gadgets and other accessories for smartphones and tablets knew how to zag when market decided to zig. Earnings climbed 55% to $5.1 million, or $0.16 a share. Analysts were only holding out for a profit of $0.14 a share.
Investors shouldn't have been surprised. As a piggyback play on Apple (Nasdaq: AAPL ) , ZAGG was sure to make a strong showing after Apple sold 35 million iPhones and nearly 12 million iPads during the same three months.
American Tower (NYSE: AMT ) also stood tall, earning $0.56 a share when Wall Street was settling for net income of only $0.40 a share.
American Tower leases out space on its antenna towers to broadcasters and wireless carriers. There may not be a lot of growth on the broadcasting end, but obviously the smartphone boom finds carriers scrambling for better coverage. American Tower distributes its taxable income to investors as a REIT, so a strong showing on the bottom line should lead to higher payouts in the near future.
Finally we have Hain Celestial (Nasdaq: HAIN ) coming through with heavenly results. A day after Whole Foods Market (Nasdaq: WFM ) served up blowout quarterly results, the maker of organic and natural products -- many stocked at Whole Foods -- had a great report of its own.
Hain Celestial saw its shares buck Friday's market downtrend, rising 6% after serving up a profit of $0.54 a share. Analysts were expecting the company behind Celestial Seasoning teas, Terra snack chips, and Earth's Best baby food to clock in with net income of only $0.50 a share.
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.