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 The Fresh Market (NYSE: TFM ) .
The upscale grocer was as fresh as some of its signature produce. Revenue climbed 14% in its latest quarter, fueled by a 4.6% uptick in same-store sales. The real story here was expanding margins, as earnings soared 52% to $0.22 a share. Analysts were only banking on a profit of $0.18 a share.
Consumers don't seem to have a problem paying up at premium groceries, but Wall Street has been slow to catch up. The Fresh Market and Whole Foods Market (Nasdaq: WFM ) have blown past the pros in every single quarter over the past year.
Finisar (Nasdaq: FNSR ) also went far. The fiber optic equipment maker posted an adjusted quarterly profit of $0.21 a share. This may be less than what Finisar reported a year ago, but it's more than the $0.18 a share that investors were targeting. It's a welcome development, since Finisar had simply met analyst estimates in the two previous quarters.
Finally, we have Jos. A. Bank (Nasdaq: JOSB ) dressing up nicely for its quarterly portrait. The apparel retailer's net income of $0.74 a share suited up ahead of the $0.68 a share where Mr. Market was perched. Then again, good things tend to happen when you come through with a whopping 14.7% spike in comps.
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.
If you want to track these stocks to see if they come out ahead next quarter, add them to My Watchlist:
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