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 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 SanDisk (Nasdaq: SNDK ) .
There was plenty of pessimism heading into the flash memory leader's quarterly report, especially after SanDisk had warned of sluggish demand relative to production in its previous report.
Well, the $0.21 a share that SanDisk earned was well short of its performance a year earlier, but it was more than enough to land ahead of the $0.18 a share that worrywart analysts were forecasting. A rosier outlook for the balance of the year should get Wall Street back on track.
Select Comfort (Nasdaq: SCSS ) was another winner that had to overcome looming pessimism. The company behind the Sleep Number air-chambered beds saw rival Tempur-Pedic (NYSE: TPX ) get slammed several weeks ago after posting uninspiring results.
Select Comfort also took a hit on Tuesday after retailer Mattress Firm (Nasdaq: MFRM ) slashed its full-year sales forecast.
Well, Select Comfort's profit of $0.30 a share a day later -- besting the $0.27 a share where the pros were napping -- was enough to send the stock higher.
Finally, we have Joe's Jeans (Nasdaq: JOEZ ) fitting in nicely. The premium denim company -- fueled by a 16% increase in sales and an impressive 10% pop in retail comps -- cranked out a profit of $0.02 a share. That may not seem like much, but it was twice as much as the market was expecting.
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.