Don't 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 stunned expressions 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 Ebix
Despite the heady growth, Ebix remains an underfollowed and undervalued player in the otherwise sexy cloud-computing space. Ebix is trading for just 13 times next year's projected bottom line, a fraction of the multiples commanded by the more widely followed salesforce.com
Ebix shareholders can't mind living in the shadows, since obscurity has helped it post three consecutive quarters of market-thumping net income.
Finally, we have SunPower
It's important to keep watching the companies that surpass expectations. Over time, it will be a lucrative experience for investors as the market rewards the overachievers. That's the kind of surprise that 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.
Walt Disney is a Motley Fool Inside Value pick and a Motley Fool Stock Advisor selection. Salesforce.com and Ebix are Motley Fool Rule Breakers recommendations. The Fool owns shares of Ebix, on which Motley Fool Options has recommended a bull call spread position. Try any of our Foolish newsletters today, free for 30 days.
Longtime Fool contributor Rick Munarriz is a fan of toppers. He does not own shares in any of the stocks in this column, except for Ebix and Disney. He 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.