Don't settle for ordinary quarterly reports.
Each week, I look at three companies that beat market expectations, since I believe that such outperformance is 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 Intuit
Investors shouldn't use this robust report to project a souped-up annual total. This is a highly seasonal company. Just as tax-preparation giants H&R Block
China's SINA
SINA's performance isn't an endorsement of all dot-com plays in China. NetEase.com
Finally, Target
It's important to keep watching the companies that surpass expectations. Over time, it will be a profitable 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.