3 Stocks That Blew the Market Away

By Rick Aristotle Munarriz
November 9, 2009 | Comments (10)

Recs

5

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Why settle for ordinary quarterly reports?

I believe that the biggest factor in a stock's ability to beat the market is its ability to beat the market's expectations. That's why I look every week at three companies that have humbled Wall Street's pros over the past few trading days. If a company has more in the tank than the analysts figured, capital appreciation often follows.

We can start with Starbucks (Nasdaq: SBUX). The coffee giant earned $0.24 a share before charges in its latest quarter, well ahead of both the $0.10 it rang up a year ago and the $0.21 that analysts were expecting.

Things aren't perfect at Starbucks, though. Same-store sales are still negative, and revenue fell again. However, the healthy bottom line is a testament to the company's cost-cutting strategies.

MasterCard (NYSE: MA) also charged past the pros. The credit-card giant delivered a third-quarter profit of $3.45 a share, while Wall Street was swiping its plastic at a $2.94 target. Investors should have seen this coming, since rival Visa (NYSE: V) also surpassed analyst guesstimates a week earlier.

Finally, we have Sirius XM Radio (Nasdaq: SIRI) arriving at near-profitability fashionably early. The satellite-radio giant merely broke even before charges, but the market was braced for yet another quarterly deficit.

So keep watching the companies that surpass expectations. Over time, doing so 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. And come on back next Monday to learn about more stocks that blew the market away.

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The Fool owns shares of Starbucks, which is a Motley Fool Stock Advisor recommendation. Try any of our Foolish newsletter services free for 30 days.

Longtime Fool contributor Rick Munarriz is a fan of toppers. He owns no shares in any of the stocks in this column and is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.

Comments from our Foolish Readers

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  • Report this Comment On November 09, 2009, at 3:08 PM, SIRIDoom wrote:

    SIRI sucks!!! Going to 58 cents. Without Goldman Sachs control and High Speed Computer Trade, SIRI would be 38 cents.

    SIRI rev-split 25 for 1 share soon...

    PS

    The economy is so bad that Hot Wheels stock is trading higher than GM.

    The economy is so bad that I ordered a burger at McDonald's (MCD Quote) and the kid behind the counter asked, "Can you afford fries with that?"

  • Report this Comment On November 09, 2009, at 3:17 PM, BigVincent wrote:

    ^^^^ get a life siri dumb.

    Quarterly report speaks for itself.

    Next quarter won't be break even it will be profits.

    Synergies are at work here.

    Enough talk about satellite radio we all know its going up from here.

    Onto starbucks, this stock is going up during the Christmas season because people simply cannot stop to resist a eggnog latte, or the halloween seasons pumpkin spice latte.

    Simply too much caffeine flavor during the holdays to cash in a .05 profit per share during the christmas holidays.

  • Report this Comment On November 09, 2009, at 3:17 PM, RAF22 wrote:

    SIRI will be an upside steamroller over time, gradually grinding the SHORTS into the ground (as it has already done along the way up from the lows earlier this year. The company is now implementing a business plan that is unbeatable - based upon the combination of owning proprietary content and delivery, appealing to an increasingly wider audience, at a most attractive subscription rate. This is exactly the business model that propelled Bloomberg and cable TV to dominance int their respective fields. The train is now leaving the station for SIRI - ALL ABOARD!

  • Report this Comment On November 09, 2009, at 3:50 PM, SIRIDoom wrote:

    Who shorts a 60 cent garbage stock like SIRI? Only CEO Mel KarmaCrook in buddy buddy deals with Goldman Sachs. Yes, the original merger “Quick and Dirty” Mel gave a lean for shares in trade for debt. Goldman Sachs Barrows shares on the lean to short a hedge on the Merger loan. All investigated by the SEC and all within the law. Mel gave Goldman the ability to screw SIRI share holders on day one.

    The same CEO, Mel KarmaCrook made a deal with stock holders and voted to issue millions of share to pay debt and then rev-split to recover the saturation. This is a well know penny stock scam (issue share and rev-split). However the economy slide delayed the rev-split and the NASDAQ suspended the 1.00 share rule. The rev-split was planned and is pending..

    Now, lets look at this great SIRI stock:

    Billions of debt. A debt load to choke on. One time fee's of millions on every quarterly report just to manage the debt.

    Share saturation over 3 billion.

    More saturation pending a massive debt swap on the Malone Liberty media bailout deal.

    And Reverse Split planned 10 to 50 shares of your shares for 1 new share...

    SIRI is great... Great way to lose money... LOL

  • Report this Comment On November 09, 2009, at 4:30 PM, RAF22 wrote:

    Same comments from SIRI-Doom all the way up from the mid .30's. Right on - SIRI-Doom - anyone who has listened to you has already been buried by the upside performance of SIRI.

  • Report this Comment On November 09, 2009, at 4:50 PM, SIRIDoom wrote:

    Same sales pitch from RAF since SIRI was 6.00 a share. The SIRI advertiser has been pumping pro SIRI propiganda all the way down.

    What I do is free. I do it to save other from what people like RAF did to me by selling this junk stock. Mel and Goldman Sachs pay RAF and an army of advertisers to sell SIRI so we can all be milked out of money...

  • Report this Comment On November 09, 2009, at 5:10 PM, dedmunds wrote:

    SIRIDICK back to the same old CRYING!!!! BA BA BA HA!!! Your such an idiot nobody listens to you CRAP ANYWAY !!!!

    One day you will be gone until then YOU WILL STILL BE CRYING THE BLUES HOW MUCH YOU LOST YOUR AS#S ON SIRI.

    GO SIRI !!!!

  • Report this Comment On November 10, 2009, at 3:19 AM, SIRIDoom wrote:

    Reverse Split planned 10 to 50 shares of your shares for 1 new share...

    LOL LOL LOL

  • Report this Comment On November 10, 2009, at 10:01 AM, dedmunds wrote:

    JUST RELEASED!!!

    SIRIDoom and CRAMER are getting MARRIED!!!

    They are SIRI IN LOVE!!!!

    OHW ISINT'T THAT SPECIAL!!!

  • Report this Comment On November 10, 2009, at 2:21 PM, wtmdx82 wrote:

    i always try to look at both sides of the coin, to see if i could learn something new, but it's hard to take SIRIDoom serious, when he/she doesn't have a CAPS profile... if he were a CAPS All Star giving out advice, i would listen.... until then, i'm going to keep raking in SIRI at this bargain price

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Related Tickers

11/25/2009 4:00 PM
MA $239.84 Up +2.19 +0.92%
MasterCard, Inc. CAPS Rating: **
V $81.79 Up +1.17 +1.45%
Visa, Inc. CAPS Rating: ***
SBUX $21.82 Up +0.49 +2.30%
Starbucks Corp CAPS Rating: **
SIRI $0.63 Down +0.00 -0.30%
Sirius XM Radio CAPS Rating: **

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