Why settle for ordinary quarterly reports?
I take a look every week at three companies that beat market expectations, 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 Nike
The solid report may come as a surprise to those who figured that penny-pinching shoppers would shy away from Nike's pricey sneakers. It certainly doesn't help that other brand-centric footwear makers like Crocs
However, Mr. Market clearly was braced for something far more hideous after watching rival Circuit City (OTC BB: CCTYQ.PK) file for bankruptcy protection. Then again, watching the competition shutter stores if not liquidate entirely is probably a good thing for Best Buy down the road.
Finally, we have Adobe
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 Motley Fool Rule Breakers newsletter service. Want in? Check out a 30-day trial subscription.
Come back next Monday to learn about more stocks that blew the market away.