Every week, I spotlight 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 over the past few trading days.
We can start with Take-Two Interactive
Pair up the better-than-expected quarter with healthy pre-orders for next month's Grand Theft Auto IV, and Take-Two is naturally raising its guidance for the year. That will no doubt come as frustrating news to Electronic Arts
ZipRealty
Sure, it was far worse than the $0.07-a-share loss it posted a year earlier. Some would argue that the real estate broker with an online bent is a relative winner. Its agents closed on more homes during the quarter, but an 8% dip on the top line resulted from those homes selling at lower prices than they did a year ago.
Finally, we have J. Crew
J. Crew had yet another solid period, posting a 4% gain in comps. But it isn't alone in retail. Other chains like Men's Wearhouse
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 for free.
Either way, come back next Monday to learn about more stocks that blew the market away.