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 Resources Connection (Nasdaq: RECN ) .
The professional-services firm was supposed to earn $0.15 a share, just ahead of the $0.12 a share it rang up a year earlier. Revenue was flat -- largely on a double-digit decline overseas -- but margins are apparently beefing up when it comes to offering business services and consulting. Resources Connection scored a quarterly profit of $0.21 a share.
Wolverine World Wide (NYSE: WWW ) is making tracks in the right direction. The footwear maker managed to earn $0.48 a share in its latest quarter, easily besting the pros perched at profit projections of $0.44 a share.
Finally, we have JPMorgan Chase (NYSE: JPM ) blasting through forecasts.
Earnings season kicked off for the banking sector on Friday with JPMorgan Chase, Webster Financial (NYSE: WBS ) , and Wells Fargo (NYSE: WFC ) all reporting their latest financials. Webster merely met expectations, and Wells Fargo only landed $0.01 a share ahead of Mr. Market's target. However, JPMorgan managed to crank out net income of $1.09 a share, 56% ahead of the $0.70 a share that investors were expecting from the company.
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.