Why settle for ordinary quarterly reports?

I believe that the biggest factor in a stock's ability to beat the market is its ability to beat the market's expectations. That's why I look every week at three companies that have humbled Wall Street's pros over the past few trading days. If a company has more in the tank than the analysts figured, capital appreciation often follows.

We can start with AutoZone (NYSE:AZO). The auto-parts retailer revved up a profit of $2.82 a share in its fiscal first quarter, good enough to pull ahead of both the $2.23 a share it earned a year ago and the $2.66 a share that analysts were expecting.

It's been a good run for the auto-parts chains, since consumers need to maintain the cars they're forced into keeping around longer. Pep Boys (NYSE:PBY), Advance Auto Parts (NYSE:AAP), and O'Reilly Automotive (NASDAQ:ORLY) have all surpassed Wall Street targets in their latest quarters.

High-end athletic-apparel retailer lululemon athletica (NASDAQ:LULU) also jogged past the pros, with quarterly income soaring by 60% to $0.20 a share. Analysts were targeting a profit of $0.19 a share for the period. Shoppers are shying away from some luxury brands, but not this one. Comps rose by a healthy 10% on a constant-dollar basis.

Finally, we have Casey's General Stores (NASDAQ:CASY) growing its bottom line by 22% to $0.66 a share. Analysts figured that the retailer would grow only half as quickly as it ultimately did. It's easy to understand how a chain selling discounted groceries, gasoline, and general merchandise could hold up well in this environment. Wal-Mart (NYSE:WMT) topped Mr. Market's estimates last month on a similar thesis.

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.