Predicting earnings is rarely a perfect art. Analysts miss, and they miss often. When a stock comes in below its expectations, shareholders naturally worry. But when a company blows past Wall Street's targets, it can be a bountiful feast for investors. 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 this past week.
We'll start with Google
That's the way it's been for Google. It has trounced the targets in four of its first five quarters as a public company. The results sent the shares barreling toward a new all-time high, and expectations are being raised even higher now as the company enters the seasonally potent fourth quarter, where many advertisers ramp up their marketing budgets for the holidays.
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, with the average Rule Breakers selection having trounced 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.
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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 theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.