Don't settle for ordinary quarterly reports.
I take a look at three companies that beat market expectations every week, since I believe 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, and 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 Steelcase (NYSE: SCS ) . The provider of workplace products, furnishings, and services came through with a quarterly profit of $0.25 a share, blowing past the $0.19 a share that the pros were forecasting.
Steelcase's report was a welcome surprise, coming a day after fellow office furnishings giant Herman Miller (Nasdaq: MLHR ) took a hit after a poorly received quarterly report.
Rite Aid (NYSE: RAD ) also impressed on the bottom line. The drugstore operator didn't turn a profit. That's fine. Rite Aid hasn't posted positive quarterly earnings since 2007. However, Rite Aid's deficits are narrowing. Analysts figured that the pharmacy giant would post a loss of $0.07 a share after registering a deficit of $0.11 a share. Well, Rite Aid managed to only deliver a deficit of $0.05 a share.
Finally we have KB Home (NYSE: KBH ) also losing less than Wall Street was targeting. The homebuilder's stock soared 16% on Friday after delivering a quarterly deficit of $0.12 a share. Analysts were settling for a loss of $0.16 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.