Why settle for ordinary quarterly reports? Every week, I look at three companies that beat market expectations, since I believe that such outperformance is the biggest contributor to any stock's market-beating success. 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 over the past few trading days.
We can start with China Finance Online
China Finance Online tempered its near-term guidance after the loss of a third-party data provider, but it's hard not to like a fast-growing company in China with roughly half of its stock price backed by the cash and equivalents on its balance sheet.
Investing in China is certainly risky, but many of the country's growth stocks -- like NetEase.com
American Public Education
For-profit educators like American Public Education and market leader Apollo Group
Finally we have Vail Resorts
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.