Why settle for ordinary quarterly reports?
Each week I take a look at three companies that beat market expectations, since I believe that that's the biggest factor in a stock beating the market. Leaving Wall Street's pros with puzzled 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 Johnson & Johnson
It wasn't perfect. Cost-conscious consumers shifting to cheaper generics and a strengthening dollar nicked the top line. However, J&J's landing bodes well for fellow drug giants like Merck
Google
Finally, we have Goldman Sachs
Goldman Sachs is also making headway toward paying back its TARP capital, no doubt as a way to battle back against the public's unrest over the firm's taking $10 billion in TARP funds and clearing nearly $13 billion of the money that went to AIG
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.