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 Cree (Nasdaq: CREE ) .
The LED -- or light-emitting diode -- specialist posted a quarterly profit of $0.25 a share, just ahead of the $0.23 a share that the pros were targeting. It's a pretty big deal since Cree had actually clocked in below Wall Street estimates in each of its three previous quarters.
SodaStream (Nasdaq: SODA ) also "popped" higher. The Israeli company behind the portable appliance that turns flat water into carbonated water checked in with fizzy growth. Adjusted profitability soared 41% to $0.52 a share, easily beating the prognosticators that were targeting net income of $0.46 a share.
SodaStream is also benefiting from Primo Water's (Nasdaq: PRMW ) decision to explore strategic alternatives that will likely involve unloading its Flavorstation business to focus on its more fluid water and dispenser businesses.
Finally, we have Nuance Communications (Nasdaq: NUAN ) talking over the analysts. The voice-recognition software leader saw its adjusted earnings climb 29% to $0.45 a share. Wall Street figured that Nuance's tweaked profitability would only grow at half that rate.
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.