Earnings don't just give companies a chance to sweat in the spotlight every three months. For the opportunistic entities, it's also a moment to shine. That's why investors are well served to take note of the companies that beat analyst estimates. Blowing the market away often means that things are going so well at a particular company, even those who are paid to follow it closely have no idea how good things are.
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 Paychex
So what's the difference this time? Well, after raining on the market's parade last time out, Palm readers were braced for the worst. Obviously, that didn't happen. Palm is a Motley Fool Stock Advisor recommendation. It's been a good one, rising by 49% since being singled out to subscribers nine months ago. It would definitely be encouraging to see margins start to widen again, but as long as the top line keeps growing nicely, you've got to hand it to Palm (pun intended, of course).
FedEx is a more seasoned Stock Advisor selection. It has soared 83% higher since it was recommended nearly three years ago. And it doesn't seem likely to be going in reverse any time soon, especially since the company boosted its outlook for the remainder of fiscal 2006.
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.
Come on 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. 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.