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 DryShips
There's more to DryShips than meets the eye. For starters, The Motley Fool's own Christopher Barker points out how the company generated more revenue from its ultra-deepwater drillships operations than its bread-and-butter dry bulk business. DryShips should also eventually complete the spinoff of its Ocean Rig subsidiary.
Home Depot's report came a day after Lowe's
Finally, we have Canadian Solar's
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.
Home Depot and Lowe's are Motley Fool Inside Value selections. Lumber Liquidators is a Motley Fool Rule Breakers pick. The Fool owns shares of Lowe's and Lumber Liquidators. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
Longtime Fool contributor Rick Munarriz is a fan of toppers. He does not own shares in any of the stocks in this column. 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.