3 Stocks That Blew the Market Away

Every week, I take a look at a few companies that lapped their profit targets. Leaving Wall Street's pros with quizzical looks on their faces can be a good thing. It usually means that the companies have more in the tank than analysts figured and capital appreciation often follows.

Let's take a look at a few companies that humbled the prognosticators this past week.

We can start with Thor Industries (NYSE: THO). The maker of recreational vehicles saw earnings climb 16% higher to a record $0.90 per share in its fiscal fourth quarter, despite a 6% slide on the top line. Analysts figured that the company would generate a profit of only $0.70 a share.

It's easy to see why the market was spooked. RVs are gas guzzlers, and stubbornly high prices at the pump can't be helping. RVs aren't cheap, and we're in a tricky economy. However, as rival Fleetwood (NYSE: FLE) recently suggested, the RV industry may wind up an unlikely beneficiary of the subprime collapse, if defaulting homeowners step down to mobile homes or roll with RVs.

Wolverine World Wide (NYSE: WWW) is another topper. The rugged footwear maker posted a profit of $0.54 a share, just ahead of Wall Street's $0.52 target. The company's move to focus on its higher-margin products is paying off, with Wolverine's bottom line outpacing its top-line growth.

Finally, we have Constellation Brands (NYSE: STZ). The company behind Mondavi wines and Corona beers posted a profit of $0.35 per share, before one-time gains. The market was looking for the company to raise its glass for a quarterly toast at the $0.32-per-share mark.

Keep watching the companies that lap expectations. Over time, it will be a rewarding experience for investors as the market rewards the overachievers. That's the kind of surprise we look for in the Rule Breakers newsletter service. Want in? Check out a 30-day trial subscription.

Either way, come back next Monday to learn about more stocks that blew the market away.