I believe that a stock's biggest factor in beating the market is to first beat the market's expectations. That's why I devote this space every week to reviewing three companies that have humbled the prognosticators. Leaving Wall Street's pros with puzzled expressions usually means that these companies had more in the tank than expected, and capital appreciation often follows.
We can start with Best Buy
With Circuit City's March liquidation, Best Buy stands to gain some serious market share in this space. Naturally, consumers need to be in a mood to snap up new computers, appliances, and televisions. We'll get there eventually, and when we do, that's when Best Buy will probably beat both analyst guesstimates and its previous year's net income.
Finally, we have Carnival
Carnival also announced that future bookings were well ahead of where they stood a year ago. That's good news for industry rivals such as NCL and Royal Caribbean
So keep watching the companies that surpass expectations, since the market rewards the overachievers. That's the kind of story we look for in the Rule Breakers newsletter service. Want in? Check out a 30-day trial subscription. And come back next Monday to learn about more stocks that blew the market away.
Best Buy is a Motley Fool Inside Value recommendation. Steiner Leisure is a Motley Fool Rule Breakers pick. Best Buy and FedEx are Motley Fool Stock Advisor recommendations. United Parcel Service is a Motley Fool Income Investor recommendation. The Fool owns shares of Best Buy. Try any of our Foolish newsletter services free for 30 days.
Longtime Fool contributor Rick Munarriz is a fan of toppers. He owns no shares in any of the companies in this story and 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.