Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
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 Research In Motion (Nasdaq: RIMM ) . Shares of the BlackBerry maker traded as much as 14% higher on Friday -- before settling for a respectable 5% gain -- after posting a much narrower deficit than what the pros were expecting.
RIM's adjusted loss of $0.27 a share may not seem all that hot, but the market was braced for $0.47 a share in red ink. After stunning Wall Street with surprising deficits in its two previous quarters, the market mavens didn't want to be caught off guard again.
Well, they erred on the side of pessimism, and RIM came through.
Carnival (NYSE: CCL ) also cruised higher. The world's largest cruise-ship operator posted quarterly net income of $1.53 a share during its seasonally potent summer quarter. Investors were banking for a profit of $1.43 a share. This is the third consecutive quarter that Carnival has coasted past the pros, and this bodes well for smaller rival Royal Caribbean (NYSE: RCL ) , which steps up with its results in three weeks.
Finally, we have Paychex (Nasdaq: PAYX ) bouncing. The payroll processing giant's quarterly profit of $0.42 a share was ahead of the flat $0.41-a-share showing that the market was expecting. And, yes, it is a good sign for corporate America when a payroll company is doing well.
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.