If you're going to step up the earnings stage every three months, you obviously don't want to disappoint the market. That doesn't mean that a company should settle for parroting the analyst targets, though. I'm always watching for those surprising companies that blow estimates away. It's a sign that a company is improving at a rate that even the pros can't grasp at the moment.
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 Gymboree
Gymboree was a strong growth stock in the 1990s. At the time, its concept of retailing colorful kid clothes and hosting popular early-learning activities that culminated in "parachute time" was driving stellar growth. No, parachute time isn't what you think it is. Parents weren't that crazy a decade ago! It's just a ritual where kids gather around a circular parachute and flap it around. However, Gymboree could probably have used a parachute to break its fall when it struggled with expansion, comps, and cutthroat clearance sales to move dated inventory. That seems to be in the past now, since Gymboree has been bouncing back in recent quarters. Let's see if the company keeps the welcome surprises coming. (Keep that parachute handy, just in case.)
From blue-light specials to red-hot turnaround, Sears
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, since the average Rule Breaker selection has 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.
Longtime Fool contributor Rick Munarriz is a fan of toppers. He does not own shares in any of the companies in this story. The Foo l has a disclosure policy. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.