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 Ferrellgas Partners (NYSE: FGP ) .
It was easy to bet against the propane distributor. Ferrellgas missed Wall Street's profit targets for eight consecutive quarters before Friday morning's report. However, the company came through with a quarterly profit of $0.26 a share. Battered analysts were only holding out for net income of $0.19 a share.
Annie's (NYSE: BNNY ) recently went public, so there were going to be plenty of eyes on the organic foodstuffs maker in its first quarterly report as a public company. Well, net sales and adjusted earnings climbed nearly 18% higher on both counts.
Annie's profit of $0.24 a share bested the $0.20 a share that Wall Street was forecasting. Investors should have seen this coming. Fellow organic goods distributor Hain Celestial (Nasdaq: HAIN ) and leading organic grocer Whole Foods Market (Nasdaq: WFM ) had topped pro estimates last month.
Finally we have Francesca's Holdings (Nasdaq: FRAN ) dressing up nicely. The fast-growing boutique operator made headlines for all the wrong reasons a quarter ago, when its CFO was let go after tweeting "Good numbers=Happy Board" -- possibly leaking good news -- days ahead of its official quarterly report.
Lips were sealed this time around, but the retailer's quarterly profit of $0.20 a share was comfortably ahead of the $0.18 a share that the market was betting 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.