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 lululemon athletica
The Canadian retailer of premium athletic wear for women has been selling a ton of its pricey yoga apparel since the recession began lifting. Earnings for its latest quarter soared 70% to $0.46 a share. The pros were striking a pose at $0.38 a share.
Overpriced duds are a good place to be if your brand is hot and consumers are feeling a little more comfortable in updating their wardrobe. Premium denim brand True Religion
Finally, we have Booz Allen Hamilton
Booz Allen Hamilton had its IPO in November, but it has now beaten the market's bottom-line estimates in both of its quarters as a public company. That's exactly what investors like to see.
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.
The Motley Fool owns shares of Under Armour and lululemon athletica. Motley Fool newsletter services have recommended buying shares of Under Armour and lululemon athletica. 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. The Motley Fool has a disclosure policy.
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.