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 TIBCO Software
Things looked bleak for TIBCO last month, with digital data enablers plunging on concerns that tech spending would dry up in this iffy economy. Thankfully TIBCO held up better than some of its rivals, with revenue soaring 24% in its latest quarter -- fueled by a 29% spike in license revenue. The end result for TIBCO was a profit of $0.23 a share, just ahead of the $0.21 a share that the market was expecting.
No one should be surprised. TIBCO has now surpassed Wall Street estimates in each of the past 14 quarters.
Finally, we have Cintas
The strong showing at Cintas is welcome news for corporate America, even though last week dealt investors a mixed message when it comes to another reliable pulse take -- office furniture. Herman Miller
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:
Motley Fool newsletter services have recommended buying shares of Tibco Software and Cintas. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.