3 Stocks That Blew the Market Away

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 Focus Media (Nasdaq: FMCN  ) .

The Chinese advertising giant posted better-than-expected quarterly results last Monday. Yes, it was Memorial Day here, but it was business as usual in the world's most populous nation. The company behind a massive fleet of ad-spewing LCD monitors, poster frames, and digital billboards came through with a quarterly profit of $0.46 a share, comfortably ahead of the $0.43 a share that the market was forecasting.

Investors shouldn't be surprised. Focus Media has now landed ahead of Wall Street profit targets for 10 consecutive quarters.

Closer to home, Booz Allen Hamilton (NYSE: BAH  ) also made mincemeat of analyst estimates. The management and technology consulting firm posted an adjusted profit of $0.44 a share, ahead of both the $0.36 a share it delivered a year ago and the $0.41 a share that the pros were projecting.

The cherry on top is that Booz Allen Hamilton also declared a special $1.50 dividend that it will distribute later this month.

Finally, we have RBC Bearings (Nasdaq: ROLL  ) on a roll. The maker of precision plain, roller, and ball bearings was supposed to grow its profitability by an impressive 32% in its latest quarter. RBC blew past that $0.62-a-share profit to earn $0.69 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.

The Motley Fool owns shares of RBC Bearings. 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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  • Report this Comment On June 04, 2012, at 2:06 PM, MrSinnister wrote:

    Why not do an in-depth research report on both why Discovery Labs isn't moving and why now is the perfect time to both invest in Biotechs and DSCO? They have been major M&A targets the past Spring, and I don't see that stopping in the near future.

    Received FDA approval for 1 of its drugs, SURFAXIN, and its nebulizer Affectair on March 5th of this year. PPS Spiked at 5.39 until a week later, a secondary offering of 16 million shares @2.80 was submitted, killing the momentum from the FDA approval and leaving it in the doldrums where it sits today, lagging behind companies with only ONE drug and deeply in the red like Seattle Genetics SGEN, currently trading at over 19. DSCO is slated to have it's distribution pipeline for its infant RDS (Respiratory Distress Syndrome) drug out by the end of the year, with EU approval next year. Trading at currently 2.52, this stock could be the steal of the year, and can actually beat Bank of America (before the crises) as comeback stock or Stock of the Year. The volume is currently dismal as longs have rooted into their positions and currently not selling. Check it out and do your own due diligence.

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