Don't 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 Take-Two Interactive
That's impressive for a company that typically flounders outside of its Grand Theft Auto installments. However, the recent success of BioShock 2 and Red Dead Redemption are proving that Take-Two isn't a one-trick pony. The company may have blundered in passing on Electronic Arts'
Deep discounters are still in vogue as we claw our way out of the economic doldrums. Family Dollar
Finally, we have lululemon athletica
It's important to 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. And 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 owns no shares in any of the stocks in this column 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.