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.
Best Buy and Wal-Mart are Motley Fool Inside Value selections while Best Buy is also a Motley Fool Stock Advisor pick. The Fool owns shares of Best Buy. Crocs is a former recommendation of Motley Fool Hidden Gems Pay Dirt. Try any of our Foolish newsletters today, free for 30 days.
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.