Why settle for ordinary quarterly reports?

I take a look at three companies that beat market expectations every week, since I believe that it's the biggest factor in a stock beating the market. 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 Sealy (NYSE:ZZ). The leading mattress maker has plenty of near-term challenges, but it still managed to post a profit of $0.12 a share in its latest quarter. That may be lower than the $0.22 a share it earned a year ago, but it's comfortably ahead of the $0.08 a share that Mr. Market was expecting.

Sealy's strength came from an unlikely source: high-end mattresses. Its Posturepedic beds above the $1,000 price point sold briskly, no doubt posing challenges for Tempur-Pedic (NYSE:TPX) and Sleep Number bed master Select Comfort (NASDAQ:SCSS).

Yum! Brands (NYSE:YUM) put the "wow" in "Chihuahua," as the company behind Taco Bell, KFC, and Pizza Hut grew its bottom line to $0.58 a share. Analysts were waiting at the $0.54-a-share drive-thru window.

Fast-food chains have been holding up better than casual-dining concepts. It's no surprise to see Yum! hit its earnings out of the park in the same week that Ruby Tuesday (NYSE:RT) missed its net income target and Brinker International (NYSE:EAT) talked down its guidance.

Costco (NASDAQ:COST) is another topper -- at least excluding some one-time charges related to inventory and membership-fee accounting. The warehouse club generated a profit of $0.97 a share before charges. Investors were looking for $0.93 a share in earnings.

Keep watching the companies that lap expectations. Over time, it will be a profitable 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.