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 FuelCell Energy (Nasdaq: FCEL ) . The clean-tech power-plant builder posted a quarterly deficit of $0.11 a share, narrower than the $0.14 a share that analysts were expecting.
Alternative energy is a dynamic niche, though FuelCell's negative gross margins leave a lot to be desired. The speculative shares have been cut in half this year. The stock's low price and compelling specialty will keep the speculators close, as investors wait for a little more clarity when it comes to FuelCell's chances at becoming a profitable company.
Take-Two Interactive (Nasdaq: TTWO ) also gamed the pros. Wall Street figured that quarterly earnings would roughly triple to $0.31 a share, but the video game publisher's adjusted profit popped more than sixfold to $0.67 a share.
The video game industry has been largely languishing since early last year, but there are more than a few signs of life as we barrel toward the telltale holidays. Microsoft is selling millions of its Kinect motion-based controllers. Activision Blizzard (Nasdaq: ATVI ) set initial sales records in last month's debut of Call of Duty: Black Ops.
Finally, we have Research In Motion (Nasdaq: RIMM ) calling in nicely. The BlackBerry maker saw its earnings per share soar 58% to $1.74. Analysts were perched at the $1.65 mark. There are now more than 55 million active BlackBerry smartphones out there. It RIM is hitting it out now, one can only imagine how it will fare if next year's Playbook tablet is a worthy competitor to Apple's (Nasdaq: AAPL ) iPad.
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.