3 Stocks That Blew the Market Away

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 (NAS: GOOG) . The global search engine leader saw its adjusted earnings climb 27% to $9.72 a share. Analysts, sensing deeper margin contraction, figured that Big G would only earn $8.74 a share.

Google's growth is unlikely to be matched by stateside rivals that are relying largely on their less lucrative display advertising business to bring home the bacon. The only public search companies likely to outshine Google are China's Baidu (NAS: BIDU) and Russia's Yandex (NAS: YNDX) .

Fairchild Semiconductor (NYS: FCS) also beat the pros. The power and mobile products specialist rang up an adjusted profit of $0.34 a share, less than the $0.42 a share it earned a year earlier but better than the $0.32 a share that Wall Street was targeting.

Finally, we have JPMorgan Chase (NYS: JPM) delivering a quarterly profit of $1.02 a share, blowing past the analysts perched at $0.91 a share.

It wasn't a clean beat for the banking giant. JPMorgan's results were buoyed by a valuation allowance on the bank's debt. However, the performance still establishes a somewhat upbeat tone as we head into a busy week of banker earnings.

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:

At the time thisarticle was published The Motley Fool owns shares of JPMorgan Chase and Google.Motley Fool newsletter serviceshave recommended buying shares of Baidu and Google. 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 Munarrizcalls 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.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.