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 Global Traffic Network (NAS: GNET) .
The provider of custom traffic and news reports to radio and television stations in Australia, Canada, and the United Kingdom had no problem managing the traffic on its income statement closer to home. Earnings popped tenfold to $4 million, or $0.21 a share. Wall Street figured that Global Traffic Network would only ring up a profit of $0.09 a share during the quarter.
Majesco Entertainment (NAS: COOL) also worked out nicely for investors. The video game maker's success with its Zumba Fitness franchise continues to pay off, resulting in an adjusted profit of $0.03 a share, pleasing pros who were braced for a quarterly deficit.
Majesco's riding the popularity of motion-based controllers like the Wiimote and the Kinect to deliver new gaming experiences, but even the more traditional gaming companies are holding up well. Activision Blizzard (NAS: ATVI) and Electronic Arts (NAS: ERTS) -- the country's two largest game makers -- also posted better-than-expected quarterly results earlier this summer.
Diamond Foods (NAS: DMND) also snacked on Wall Street targets. The company behind Pop Secret popcorn, Kettle potato chips, and its namesake nuts came through with a profit of $0.52 a share in its latest quarter. Investors shouldn't be surprised, since Diamond has now topped analyst estimates in 18 consecutive quarters.
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.
If you want to track these stocks to see if they come out ahead next quarter, add them to MyWatchlist:
Add Global Traffic Network to My Watchlist.
Add Diamond Foods to My Watchlist.
Add Majesco Entertainment to My Watchlist.
At the time thisarticle was published The Motley Fool owns shares of Activision Blizzard. The Fool owns shares of and has written calls on Activision Blizzard. Motley Fool newsletter services have recommended buying shares of and creating a synthetic long position in Activision Blizzard. Try any of our Foolish newsletter services free for 30 days.Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story. Rick is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early. 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.
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