The best way to know where a company is going is to know where it's been. That leads investors to put a great deal of faith in Wall Street estimates. However, what happens when a company blows past its profit targets? The pros underestimate where the company has been, so the chances are pretty good that they will come up short in estimating where the company goes in the future. That's an investing opportunity.
Let's take a look at a few of these beaters that humbled the prognosticators this past week.
We'll start with 3M
This time, the company grew earnings per share to $2.62 after backing out one-time charges. That is well ahead of the $1.32 the company earned a year ago, as well as the $2.42 showing the market was expecting. The report came just two days after Yahoo!
Then we have Apple Computer
So, keep watching the companies that lap expectations. Over time, it will be a rewarding experience for investors as the market rewards the overachievers. That's the kind of surprise we look for in the Rule Breakers newsletter service. 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. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Foo l has a disclosure policy.