It's a simple two-step dance on Wall Street: Provide guidance. Exceed guidance. Easy as that. However, these serial masters of the undersell usually come in just a penny or two a share above analyst targets. When a company really smacks the cover off the ball, that's when it's a good idea for investors to pay attention.
Usually, something notably exciting is going on at those companies that blow the numbers away, and the professional analysts have no idea how long the good times may continue. So let's take a closer look at a few of the companies that humbled the prognosticators this past week in just this way.
We'll start with Hewlett-Packard
Trying to win back the market share crown from Motley Fool Stock Advisor recommendation Dell
So keep watching the companies that lap expectations. Over time, it will be a rewarding experience for investors. That's the kind of surprise that market watchers relish in the Rule Breakers newsletter service. In fact, we recommended Provide Commerce earlier this year. The strategy has paid off: The average Rule Breakers selection has more than tripled the S&P 500's market return. 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, but he does not own shares in any of the companies mentioned in this story. The Fool has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.