3 Stocks That Blew the Market Away

Don't settle for ordinary quarterly reports.

Every week, I take a look at three companies that beat market expectations, 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 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 ZAGG (Nasdaq: ZAGG  ) . The maker of protective covers for smartphones and tablets has been rolling lately. I guess iPhone and iPad owners must be pretty careful when it comes to safeguarding their Apple (Nasdaq: AAPL  ) gadgetry, because ZAGG's revenue soared 158% in its latest quarter. ZAGG's adjusted profit of $0.19 a share smoked past the $0.12 a share analysts were expecting.

Office supplies retailer Staples (Nasdaq: SPLS  ) came through with a quarterly profit of $0.22 a share. Wall Street was targeting net income of $0.20 a share, flat with last year's showing. The beat makes sense, since more problematic peers Office Depot (NYSE: ODP  ) and OfficeMax (NYSE: OMX  ) both outperformed the market's bottom-line guesstimates last month.

Then there's Bob Evans Farms (Nasdaq: BOBE  ) . Despite a top-line dip at the restaurant chain operator with a strong grocery store retail presence, earnings soared 42% to $0.59 a share. After eyeing the comfort-food menu, analysts had ordered up a quarterly profit of only $0.51 a share.

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.