3 Stocks That Blew the Market Away

Don't settle for ordinary quarterly reports.

I take a look at three companies that beat market expectations every week, since I believe that it's the biggest factor in a stock beating the market. Leaving Wall Street's pros with stunned expressions can be a good thing. It usually means that the companies have more in the tank than analysts figured. Capital appreciation typically follows.

Let's take a look at a few companies that humbled the prognosticators over the past few trading days.

We can start with Ford (NYSE: F  ) . The automaker posted a quarterly profit of $0.50 a share -- with a pre-tax operating profit of $0.46 a share. Analysts were parked at the $0.31 a share mark. Strong new car sales in recent months made this an easy beat to predict. Because new-car installations are so important for satellite radio, it also bodes well for Sirius XM Radio (Nasdaq: SIRI  ) which reports later this week. Perhaps even rep-scarred Toyota (NYSE: TM  ) will benefit when it reports next week.

UPS (NYSE: UPS  ) is also on the move. The parcel-delivery specialist may have seen its package volume, revenue, and operating profits slip from 2007 through 2009, but it's bouncing back now. UPS posted net income of $0.71 a share, ahead of both the $0.52 a share it earned a year ago and the $0.58 a share that Wall Street was targeting.

Finally, we have Akamai (Nasdaq: AKAM  ) landing ahead of the pros. The leading content-delivery network earned $0.35 a share in the first quarter. Analysts were settling for a profit of $0.31 a share. The company beat guesstimates, despite heated price competition between Akamai, Limelight Networks (Nasdaq: LLNW  ) , and Level 3 (Nasdaq: LVLT  ) as their server farms jockey for the contracts of sites serving up gobs of bandwidth.

It's important to keep watching the companies that surpass expectations. Over time, it will be a rewarding experience for investors as the market rewards the overachievers. That's the kind of surprise that 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.

Akamai Technologies is a Motley Fool Rule Breakers pick. Ford Motor is a Motley Fool Stock Advisor recommendation. United Parcel Service is a Motley Fool Income Investor selection. Try any of our Foolish newsletter services today, free for 30 days.

Longtime Fool contributor Rick Munarriz is a fan of toppers. He does not own shares in any of the stocks in this column. He 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.


Read/Post Comments (0) | Recommend This Article (10)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1171454, ~/Articles/ArticleHandler.aspx, 10/24/2014 6:26:44 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement