Underpromise, overdeliver. That's the mantra that drives earnings surprises. For investors, the treat is especially sweet because it means that professional bean-counting analysts have underestimated a particular company's profit power. That often leads to more upside surprises in the future.
That said, let's take a closer look at a few of the companies that humbled the prognosticators this past week.
We'll start with Nike
Earlier in the week, Lennar
It's not Palm's original handheld PDA products that are behind the company's resurgence. Companies like Research In Motion
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. The strategy has paid off: The average Rule Breaker selection has more than tripled the S&P 500's market return. Want in? Check out a 30-day trial subscription.
And 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. 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.