3 Stocks That Blew the Market Away

Every week, I take a look at a few companies that lapped their profit targets. Leaving Wall Street's pros with quizzical looks on their faces can be a good thing. It usually means that the companies have more in the tank than analysts figured, and capital appreciation often follows.

Let's take a look at a few companies that humbled the prognosticators this past week.

We can start with Yum! Brands (NYSE: YUM  ) . The fast-food giant that owns the Taco Bell, Pizza Hut, and KFC chains earned $0.50 a share in its latest quarter. Wall Street was rolling its burrito at the $0.45-per-share mark. Strong growth in China helped offset a stateside decline in sales.

Costco (Nasdaq: COST  ) is another topper. The warehouse club retailer earned $0.91 a share before a revenue recognition charge, well ahead of the $0.83 per share that analysts were expecting.

See the trend? Thrifty diners at Yum!. Thrifty shoppers at Costco. Both reports came during the same week that found penny-pinching havens McDonald's (NYSE: MCD  ) and Wal-Mart (NYSE: WMT  ) waxingupbeat about their own near-term prospects. It's the kind of trend that makes you wonder if a generic-soft-drink maker like Cott (NYSE: COT  ) is taking away business from full-priced pop stars Coke (NYSE: KO  ) and Pepsi.

Well, not so fast. PepsiCo (NYSE: PEP  ) is the third market beater worth looking at. The leader in salty snacks and silver medalist in soda earned $0.99 per share during its fiscal third quarter. The pros were looking for a $0.96-per-stub showing.

Keep watching the companies that lap expectations. Over time, it will be a rewarding experience for investors as the market rewards the overachievers. That's the kind of surprise we look for in the Motley Fool Rule Breakers newsletter service. Want in? Check out a 30-day trial subscription. It's free.

Either way, come back next Monday to learn about more stocks that blew the market away.

Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 538495, ~/Articles/ArticleHandler.aspx, 3/31/2015 1:41:40 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!