3 Stocks That Blew the Market Away

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 Molycorp (NYSE: MCP  ) . Shares of the rare-earth minerals miner soared 27% last week after the company posted a substantially smaller deficit than analysts were expecting.

Yes, Molycorp is still losing a considerable amount of money, but the adjusted loss of $0.15 a share was half as much as Wall Street was projecting. Molycorp also surprised analysts with a better-than-expected 9% sequential uptick in revenue.

SandRidge Energy (NYSE: SD  ) was also fueled by better-than-forecast results on the bottom line. The oil and gas explorer broke even on an adjusted basis. Sure, SandRidge had been profitable in each of the six previous quarters, but analysts were bracing for a loss of $0.06 a share this time around.

Finally, we have CenturyLink  (NYSE: CTL  ) coming through with encouraging bottom-line results. Its adjusted profit of $0.76 a share was ahead of the $0.68 a share it posted a year earlier. The pros were targeting flat earnings growth.

It was a busy week for regional telcos as CenturyLink joined Windstream (NASDAQ: WIN  ) and Frontier Communications (NASDAQ: FTR  ) in reporting financials. All three companies posted slightly lower revenue as rural landline customers continue to disconnect. Windstream and Frontier also missed on the bottom line. However, after CenturyLink slashed its dividend earlier this year and Frontier cut its rate last year, there were no payout whacks this time around. None of the three stocks lost ground on the week, and that's good news.

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.

SandRidge plummeted when natural gas prices reached 10-year lows, but with the company focusing on growing liquids production, the future looks optimistic. If you are unsure about the future of this emerging oil and gas junior and are looking to find out more about its strengths and weaknesses, then check out The Motley Fool's premium research report detailing SandRidge's game plan and what to expect from the company going forward. To get started, simply click here now!


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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.

  • Report this Comment On May 14, 2013, at 9:59 AM, mrconnors0531 wrote:

    Sandridge will be bought in the next year by none other than a opec member. USA has enter into a new era as a major energy producer and what better location than middle America with both oil and nat gas liguids and nat gas. SD is cheap and has the acreage for a long lasting drilling. The other possibility is China because of their recent investment into area with CHK.

  • Report this Comment On May 15, 2013, at 7:14 AM, trismigistus wrote:

    If only Americans knew about the Canadian Oil and Gas Dividend Model companies. Alas the articles about them rarely make it to the United States due to SEC rules believe it, or not.

    Lets me correct that for anyone who happens to read this. How does a sustainable 15% dividend yield sound to you?

    Spyglass Resources Corporation was born on March 26, 2013, and now trades on the Toronto Stock Exchange under SGL as well as the OTC in the United States under the ticker SGLRF.

    http://seekingalpha.com/article/1433201-spyglass-resources-c...

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