Don't settle for ordinary quarterly reports.
Every week, I take a look at three companies that beat market expectations, 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 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 ZAGG (NAS: ZAGG) . The maker of protective covers for smartphones and tablets has been rolling lately. I guess iPhone and iPad owners must be pretty careful when it comes to safeguarding their Apple (NAS: AAPL) gadgetry, because ZAGG's revenue soared 158% in its latest quarter. ZAGG's adjusted profit of $0.19 a share smoked past the $0.12 a share analysts were expecting.
Office supplies retailer Staples (NAS: SPLS) came through with a quarterly profit of $0.22 a share. Wall Street was targeting net income of $0.20 a share, flat with last year's showing. The beat makes sense, since more problematic peers Office Depot (NYS: ODP) and OfficeMax (NYS: OMX) both outperformed the market's bottom-line guesstimates last month.
Then there's Bob Evans Farms (NAS: BOBE) . Despite a top-line dip at the restaurant chain operator with a strong grocery store retail presence, earnings soared 42% to $0.59 a share. After eyeing the comfort-food menu, analysts had ordered up a quarterly profit of only $0.51 a share.
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.
At the time thisarticle was published The Motley Fool owns shares of Apple.Motley Fool newsletter serviceshave recommended buying shares of Apple and Staples, writing naked calls on Office Depot, and creating a bull call spread position in Apple. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.Longtime Fool contributorRick Munarrizis a fan of toppers. He does not own shares in any of the stocks in this column. He is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
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