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 over the past few trading days.

We can start with Apollo Group (Nasdaq: APOL). The for-profit educator behind the University of Phoenix online campus -- as well as other post-secondary pursuits -- moved to the head of the class, earning $0.83 a share in its first fiscal quarter. Analysts were only looking for a profit of $0.73 a share.

You do know that Mr. Market grades on a curve, right? That's what makes Apollo's feat so impressive. As fellow Fool Rich Smith points out, Apollo's healthy performance helped prop its margins toward the high end of its niche, where companies like Strayer (Nasdaq: STRA) and ITT (NYSE: ESI) hang out.

Infosys (Nasdaq: INFY) is another topper. The Bangalore-based provider of outsourced customer support saw its profits per share climb 37% higher. Even without a favorable tax reversal, Infosys would have come in just ahead of the $0.51-per-share Wall Street projection. With other India-based companies like Rediff.com (Nasdaq: REDF) and Sify (Nasdaq: SIFY) coming up short in their most recent quarters, it's comforting to see an Indian bellwether like Infosys come through.

Finally, let's take one for the Team (Nasdaq: TISI). The industrial construction specialist posted a quarterly profit of $0.40 a share, 43% higher than last year's showing. Investors were only expecting net income to clock in at $0.37 a share.

So, 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.