Every week, I look at a few companies that exceeded their profit targets. Leaving Wall Street's pros with quizzical looks usually means that the companies have more in the tank than analysts had figured, and capital appreciation often follows.
Let's examine a few companies that humbled the prognosticators over the past few trading days.
We can start with Disney
Earnings from continuing operations at Disney climbed 23% to $0.58 a share, well ahead of the $0.51 a share that the market was looking for. Investors knew that Hannah Montana and ESPN would deliver the goods, but few were looking for Disney's theme-parks business to post double-digit percentage gains on the top line.
Vonage
The challenges to Vonage are real. As consumers use their cell phones to replace landlines, telco giants such as AT&T
Finally, we have True Religion
So keep watching the companies that beat 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.