Why settle for ordinary quarterly reports? Every week, I examine three companies that beat market expectations. I believe this outperformance is the biggest factor in a stock's odds of 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. 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 99 Cents Only
Investors should have seen SINA's report coming, though. Despite the weakness in display advertising in China, the company has beaten analysts' estimates for 13 consecutive quarters.
Finally, Pep Boys
Keep watching the companies that surpass expectations. Over time, it will be a lucrative 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.
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.