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.
Checkpoint services the retail industry with security tagging, promotional labeling, and RFID applications. It is usually a pretty good indicator of the state of retail as a whole. The company is "cautious" about the retailing environment in 2007, yet trouncing the pros is a great way to close out 2006.
GameStop is doing just fine selling higher-margin used gear and games at this point, but things will get even better. The company expects to grow its bottom line at a 25% annualized clip over the next couple of years.
Then we have Tiffany
So, 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 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.
Longtime Fool contributor Rick Munarriz is a fan of toppers. He does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.