Why settle for ordinary quarterly reports?
I take a look at three companies that beat market expectations every week, since I believe that it'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. Capital appreciation typically follows.
Let's take a look at a few companies that humbled the prognosticators over the past few trading days.
We can start with Chipotle Mexican Grill
Chipotle is a great example of a perpetual market-thumper. Wall Street truly doesn't have a clue about this one, given the way it consistently underestimates its profitability. Let's go over each of the company's quarters in 2009.
Quarter |
Est. EPS |
EPS |
Difference |
---|---|---|---|
Q1 2009 |
$0.55 |
$0.78 |
42% |
Q2 2009 |
$0.88 |
$1.10 |
25% |
Q3 2009 |
$0.88 |
$1.08 |
23% |
Q4 2009 |
$0.81 |
$0.99 |
22% |
Source: Yahoo! Finance.
Chipotle isn't just surpassing its marks: It's obliterating them.
Activision Blizzard
Activision Blizzard is a beacon of hope in a battered industry. Retailer GameStop
Finally, we have Hasbro
Pair up Hasbro's winning report with Mattel's
It's important to keep watching the companies that surpass 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.