Every week, I take a look at a few companies that lapped their profit targets. Leaving Wall Street's pros with quizzical looks on their faces can be a good thing. It usually means that the companies have more in the tank than analysts figured and capital appreciation often follows.
Let's take a look at a few companies that humbled the prognosticators this past week.
We'll start with GameStop
The magic to GameStop's success has been in its used games and gear resale business. Sure, folks are snapping up high-priced consoles and handhelds but that's actually a low-margin business for retailers. The markups are richer on the software side, but it takes a few years before new systems penetrate markets. That leaves GameStop more than happy to sell trade-ins at even higher markups.
Then we have Toro
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.
GameStop is a Motley Fool Stock Advisor newsletter recommendation. Shanda and NetEase are picks in the Rule Breakers growth stock research service. Free 30-day trial subscriptions may help you get an early lead on future market beaters.
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 Fool has a disclosure policy.