Earnings forecasts are odd beasts. Analysts feel that they have a good read on the companies that they follow. Through their own models and corporate guidance, they estimate how much a given company earned that quarter.
When a company misses that mark, it's often seen as a failure, especially if the consensus estimate was based on the company's own projections. However, when a company is doing so well that it blows past the Wall Street averages, investors should pay attention. There could be something exciting going on if even professional analysts have underestimated a company's prospects.
That said, let's take a closer look at a few of the companies that humbled the prognosticators last week.
We'll start with Apple Computer
The stock dipped on the news. Perhaps investors have been spoiled by Apple's streak of recent market-thumping quarters. This toppling seemed merely mortal. However, the stock surged back the following day. Video iPod, anyone?
Then again, Winnebago and many of its peers, like Fleetwood
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 as 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.