With earnings season just around the corner, now is the time to brace oneself for some pretty important quarterly reports. Be on the lookout for companies that laugh at Wall Street targets and earn more than what was expected. That is a great sign of future upside surprises until the market can figure things out.
That said, let's take a closer look at a few of the companies that humbled the prognosticators last week.
We'll start with PepsiCo
Cash flow, free cash flow, and gross margins all contracted during the period, but PepsiCo was able to make it up along the way to deliver double-digit gains on the top and bottom lines.
McClatchy
Then there's Flow International
Pop, pulp, and power? Those were three ways to beat the Street silly last week.
So, keep watching the companies that lap expectations. Over time, it will be a rewarding experience for investors. That's the kind of surprise we look for in the Rule Breakers newsletter service. The strategy has paid off, as 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 Fool has a disclosure policy. He is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.