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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 Cisco Systems (Nasdaq: CSCO ) .
The maker of networking equipment has an impressive streak going. By cranking out a profit of $0.48 a share in its latest quarter -- just ahead of the $0.46 a share that analysts were projecting -- Cisco stretches its streak of better than expected profitability to 19 consecutive quarters.
That's surprising. Cisco hasn't exactly been a market darling over the past five years. It's been a flop -- and a Flip -- with consumer products. Competition on the enterprise end has been fierce. However, Cisco has somehow managed to surpass Wall Street's pessimistic targets.
PetSmart (Nasdaq: PETM ) also isn't going to the dogs. The pet supplies retailer saw its quarterly profit soar 50% to $0.75 a share, lifted by a healthy 6.5% increase in same-store sales. Analysts were only holding out for net income of $0.63 a share.
Finally, we have NQ Mobile (NYSE: NQ ) making the right connection. The global provider of mobile Internet services is growing at a steady pace, with adjusted earnings climbing 16% to $0.16 a share for its latest quarter. Wall Street was settling for a profit of $0.15 a share. It's not much, but NQ Mobile had come up short the prior quarter and simply met expectations the period before that.
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 you want a deeper look at Cisco, get the lowdown on the routing juggernaut in The Motley Fool's premium report. Our report also has you covered with a full year of free analyst updates to keep you informed as the company's story changes, so click here now to read more.
Come back next week to learn about more stocks that blew the market away in the coming days.