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 over the past few trading days.
We can start with Carnival
High gasoline prices and an iffy economy have kept margins in check, but at least Carnival is still growing. This is still an industry coming into its own, as the cruising lifestyle begins to skew younger and operators build bigger ships and hit new ports. That may explain why rival Royal Caribbean
Consumer electronics hasn’t been a good niche for investors lately, with smaller chains imploding and rivals like Circuit City
Finally, we have Titan Machinery
The great thing about Titan is that it’s not a well-known stock, having gone public less than a year ago. However, I singled out the stock in my “How to Spot the Next Hot IPO“ column just days before Titan’s blowout quarter. I may have been lucky, but Titan is just good.
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.
Dive deeper into the three toppers: