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 Google
The world's leading search engine surprised investors by posting an adjusted profit of $8.74 a share. Analysts apparently had the right numbers but in the wrong order, with their $7.84 consensus estimate.
Google's strength was enough to send regional search leaders higher on Friday. Shares of China's Baidu
Stronger investment-banking revenue and a welcome dip in loan-loss reserves helped guide Citigroup
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 Google, Bank of America, and Yum! Brands. The Fool has also opened a short position on Bank of America. Motley Fool newsletter services have recommended buying shares of Country Style Cooking Restaurant Chain, Baidu, Yum! Brands, and Google. 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, except for Country Style Cooking. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.