Don't settle for ordinary quarterly reports.
I 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 Intuitive Surgical
Sales growth for its da Vinci surgical arms has flatlined sequentially in recent quarters, but the larger installed base still means more money for Intuitive Surgical in accessories and services.
There will naturally be concerns about medical-equipment manufacturers in an era of health-care reform, but it's worth noting that Intuitive joined Boston Scientific
Finally, Select Comfort
It's important to keep watching the companies that surpass expectations. Over time, it will be a lucrative 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.