Every week, I take a look at a few companies that lapped their profit targets. Leaving Wall Street's pros with quizzical expressions usually means that the companies have more in the tank than the 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 The9
Investors should have probably seen it coming, given that fellow players Giant Interactive
Hewlett-Packard
HP has topped estimates in each of the past 13 quarters. The streak predates the arrival of CEO Mark Hurd, though he clearly deserves a lot of the credit in improving margins at the company.
Finally, we have Marvel
Marvel's stock took a hit after the company warned that the aftermath of the writers' strike leaves it with at least a 15-month gap in theatrical in-house releases after this summer's The Incredible Hulk. That's no fun, but at least Marvel knew how to lay the knockout blow to the baddies this time around.
So keep watching for the companies that exceed expectations. It will be a rewarding experience for investors, because 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.