Don't settle for ordinary quarterly reports.
Every week I take a look at three companies that beat market expectations, 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 pros over the past few trading days.
We can start with Chipotle Mexican Grill
Then again, things have a funny way of going right for the chain of 1,265 quick-service eateries when comps soar 12.7% and Chipotle's able to tackle food inflation with menu price hikes of its own.
Finally, we have E*TRADE
Moving in the right direction
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. If that's not up your alley just yet, you can still check out a free special report detailing the next trillion-dollar revolution.
Either way, come back next week to learn about more stocks that blow the market away in the coming days.
The Motley Fool owns shares of Chipotle Mexican Grill and Intuitive Surgical. Motley Fool newsletter services have recommended buying shares of Charles Schwab, Intuitive Surgical, Chipotle Mexican Grill, and TD AMERITRADE. Motley Fool newsletter services have also recommended creating a bear put spread position in Chipotle Mexican Grill and a bull put spread position in TD AMERITRADE. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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.