There is nothing like surpassing expectations on Wall Street. It's a company's way of letting the whole world know that the professional number-crunchers, who thought they had the company all figured out, undershot the stock's true earnings power. Topping targets breeds confidence. If you can do so consistently, odds are better than fair that your stock will beat the market averages handily.
So let's take a closer look at a few of the companies that humbled the prognosticators this past week.
We'll start with JAMDAT Mobile
Through acquisitions and crafty partnerships, JAMDAT is the wireless distributor of everything from Tetris to Doom to Activision's
Medical-device-component maker Greatbatch
JAMDAT, Greatbatch, and Echostar are three completely different companies. In fact, I wouldn't be surprised if that was the first time all three were mentioned in the same sentence! However, with the exception of JAMDAT watering down its outlook for the rest of the year, these are the type of companies that growth investors should be paying attention to. Part of the reason that our Rule Breakers newsletter service has more than tripled the S&P 500's market return is that many of our recommendations have gone on to surpass profit targets every single quarter. Winning selections like Steiner Leisure
Come back next Monday to learn about more stocks that blew the market away.
Activision is a Motley Fool Stock Advisor recommendation.
Longtime Fool contributor Rick Munarriz is a fan of toppers, but he does not own shares in any of the companies mentioned 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.