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3 Stocks That Blew the Market Away

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Don't settle for ordinary quarterly reports.

Every week, I take a look at three companies that beat market expectations, since I believe that'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 Focus Media (Nasdaq: FMCN  ) . The leading real-world marketer saw its adjusted earnings nearly double to $0.30 a share, ahead of the $0.27 a share that analysts were targeting. Focus Media's network of LCD monitors and poster frames in well-trafficked areas continues to draw eyeballs and sponsors.

It was generally a good week for Chinese companies, despite investors' hesitancy to buy into the volatile country. Qihoo 360 (Nasdaq: QIHU  ) , KongZhong (Nasdaq: KONG  ) , and Perfect World (Nasdaq: PWRD  ) all joined Focus Media in blowing past Wall Street expectations on an adjusted basis.

Take-Two Interactive (Nasdaq: TTWO  ) also was more "grand" than "theft" for the pros that "auto" know better. The video game publisher's deficit of $0.18 a share did reverse a juicy year-ago profit, but the market was on the lookout for a loss that was more than double what Take-Two delivered.

Finally, we have Campbell Soup (NYSE: CPB  ) pouring out better-than-expected profitability. Soup sales may have fallen for the fourth consecutive quarter, but healthy snack sales and international growth helped Campbell land a quarterly profit of $0.57 a share, surpassing both the $0.52 a share that analysts were banking on and the $0.54 a share it earned a year earlier.

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.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

The Motley Fool owns shares of Take-Two. Motley Fool newsletter services have recommended buying shares of Take-Two. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Longtime Fool contributor Rick Munarriz is a fan of toppers. He does not own shares in any of the stocks in this article. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.


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Related Tickers

5/25/2012 4:00 PM
PWRD $11.18 Down -0.15 -1.32%
Perfect World CAPS Rating: **
TTWO $11.56 Up +0.05 +0.43%
Take-Two Interacti… CAPS Rating: *****
KONG $6.85 Up +0.13 +1.93%
KongZhong Corp (AD… CAPS Rating: **
CPB $32.58 Up +0.02 +0.06%
Campbell Soup Comp… CAPS Rating: ****
FMCN $21.38 Down -0.08 -0.37%
Focus Media Holdin… CAPS Rating: *

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