Every week, I take a look at a few companies that lapped their profit targets. Leaving Wall Street's pros with quizzical expressions usually means that the companies have more in the tank than analysts figured, and capital appreciation often follows.
Let's take a look at a few companies that humbled the prognosticators this past week.
We can start with Discover Financial Services
Did Wall Street think credit card companies would take a big hit from iffy borrowers, the way the subprime-mortgage industry did? That may very well happen eventually, but for now, Discover is keeping its net charge-offs and delinquencies in line with where they stood a year ago.
It's not a surprise to see consumer-driven companies doing so well in China. The economy is percolating, and the financial state of its citizenry is improving. It's not just Focus Media and its network of outdoor electronic displays, television monitors, and other ad platforms that are on a roll. Just dig into how well things are going at companies such as wireless provider China Mobile
Finally, we have Bed Bath & Beyond
So keep watching the companies that lap expectations. Over time, it will be a rewarding experience for investors as the market rewards the overachievers. That's the kind of surprise 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.