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 Deere (NYSE:DE). The maker of heavy agricultural and construction machinery posted a quarterly profit of $0.23 a share after backing out a bunch of one-time charges. That's a far cry from the $0.81 a share it generated a year ago, but analysts were braced for a mere $0.03 showing this time around.

Breakfast at Tiffany (NYSE:TIF) was tasty on Wednesday, when the jewelry retailer delivered net income of $0.34 a share from continuing operations, blowing past Mr. Market's target of $0.24 a share. This showing bodes well for high-end jewelry rivals Signet (NYSE:SIG) and Blue Nile (NASDAQ:NILE).

Finally, we have China Finance Online (NASDAQ:JRJC) with a relative victory in China. It shed only $0.05 a share in its latest quarter, and on a non-GAAP basis, the company posted a profit of $0.03 a share. That's less than what the online-investment-research specialist posted a year ago, but analysts were braced for a slightly wider deficit. Wireless and ad-supported content haven't been enough to offset declining subscription revenue.

Growth investors may prefer sexier dot-com plays in China, including Baidu (NASDAQ:BIDU) in paid search and Changyou.com (NASDAQ:CYOU) in fantasy games, but value investors may be drawn to China Finance Online's cash position, which makes up more than half of its market cap at the moment.

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.

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