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 Sohu.com
Sohu's biggest growth has come from its successful entry into the multiplayer fantasy game market. Despite the presence of entrenched players like NetEase
Ctrip spooked the market with its lackluster outlook. It is looking for revenue in the current quarter to clock in just 5% to 10% ahead of last year. Then again, did you ever think that Ctrip would be trading at just 20 times forward earnings estimates? Did I mention that a big portion of its market cap -- around 15% or so -- is now in cash? Once growth gets back on track at the travel site, shareholders will be rewarded.
Finally, we have Buffalo Wild Wings
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.
Ctrip.com and Buffalo Wild Wings are Motley Fool Hidden Gems recommendations. Sohu.com and Netease.com are Motley Fool Rule Breakers picks. The Fool owns shares of Buffalo Wild Wings. 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.