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 OYO Geospace
Trend watchers could have seen this coming. Three quarters ago, OYO Geospace beat estimates by 6%, followed by analyst thumpings of 18% and 72%. In other words, the pros were getting dumber, underestimating OYO Geospace's profit potential by greater margins with every passing quarter.
lululemon athletica
Here's another company that has Wall Street stumped, as lululemon athletica has beaten analyst net income targets by 25% or better in each quarter over the past year.
Then again, lululemon's success has also been evident in other big-ticket retailers appealing to well-to-do women shoppers. Between jeweler Tiffany
Finally, we have Pall
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.