Why settle for ordinary quarterly reports?
I believe that the biggest factor in a stock's ability to beat the market is to beat the market's expectations. That's why I look every week at three companies that have humbled Wall Street's pros. If a company has more in the tank than the analysts figured, capital appreciation often follows.
Let's look, then, at a few companies that humbled the prognosticators over the past few trading days.
We can start with Green Mountain Coffee Roasters
Green Mountain has now zoomed past the pros in each of the past seven quarters. The stock is trading lower this morning, as a result of announcing a secondary stock offering, a dilutive move that makes it harder for the K-Cup darling to keep humiliating Wall Street.
The victory dance isn't entirely self-choreographed. A third of DreamWorks Animation's profit is the result of reworking its licensing deal with video-game developer Activision Blizzard
Finally, we have Buffalo Wild Wings
So keep watching the companies that surpass expectations. Over time, doing so 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.
Green Mountain Coffee Roasters is a Motley Fool Rule Breakers recommendation. Activision Blizzard, Walt Disney, and DreamWorks Animation are Motley Fool Stock Advisor selections. Walt Disney is a Motley Fool Inside Value selection. The Fool owns shares of Buffalo Wild Wings, which is a Motley Fool Hidden Gems recommendation. Try any of our Foolish newsletter services free for 30 days.
Longtime Fool contributor Rick Munarriz is a fan of toppers. He owns shares of Disney and DreamWorks Animation 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.