Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.

Recs

0

3 Stocks That Blew the Market Away

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Don't settle for ordinary quarterly reports.

Every week, I take a look at three companies that beat market expectations, 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 PriceSmart (NASDAQ: PSMT  ) . The operator of warehouse clubs throughout Latin America and the Caribbean rang up a quarterly profit of $0.82 a share, well ahead of the $0.77 a share that Wall Street was forecasting. The 30-unit discounter posted double-digit top-line growth as a result of strong comps at its 29 older stores and a new location that opened up last year.

Rite Aid (NYSE: RAD  ) also prescribed a strong bottom line. The drugstore operator has been consistently in the red since 2007, but losses had been narrowing heading into last week's report. Rite Aid surprised the market with earnings of $0.13 a share. Some one-time items inflated the profitability, but the pharmacy chain still would have posted positive results at a time when Wall Street was settling for a deficit of $0.02 a share.

Finally, we have Alcoa (NYSE: AA  ) putting the pedal to the metal. The aluminum producer came through with quarterly net income of $0.11 a share, just ahead of the $0.10 a share that it posted a year earlier. It's actually a bigger beat than you think. The pros were actually targeting profitability at Alcoa to decline to $0.08 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.

Want a closer look at Alcoa? The Motley Fool has written a premium research report on the company. For a Foolish investment perspective on this global giant, simply click here now to get started.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2362547, ~/Articles/ArticleHandler.aspx, 9/4/2015 12:43:55 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Rick Munarriz
TMFBreakerRick

Rick has been writing for Motley Fool since 1995 where he's a Consumer and Tech Stocks Specialist. Yes, that's a long time. He's been an analyst for Motley Fool Rule Breakers and a portfolio lead analyst for Motley Fool Supernova since each newsletter service's inception. He earned his BBA and MBA from the University of Miami, and he now lives a block from his alma mater.

Today's Market

updated Moments ago Sponsored by:
DOW 16,079.63 -295.13 -1.80%
S&P 500 1,919.69 -31.44 -1.61%
NASD 4,678.44 -55.06 -1.16%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/4/2015 12:26 PM
AA $9.48 Down -0.09 -0.94%
Alcoa, Inc. CAPS Rating: ****
PSMT $83.04 Down -0.45 -0.54%
PriceSmart CAPS Rating: ****
RAD $8.12 Down -0.07 -0.85%
Rite Aid Corp CAPS Rating: ***