3 Stocks That Blew the Market Away

Updated

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 making money. 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 pros over the past few trading days.

We can start with American Capital (NAS: ACAS) .

The business-development company may have lost a few fans when it suspended its dividend last year, but it's doing more than a few things right these days. American Capital generated $0.67 a share in net operating income, well ahead of both the $0.19 a share it posted a year earlier and the $0.20 a share that Wall Street was banking on this time around.

Limelight Networks (NAS: LLNW) also beat the professionals. The content-delivery network posted a deficit of $0.01 a share in its latest quarter, and revenue is growing again. Wall Street figured that Limelight would lose twice as much during the period. Investors should've seen this one coming. Market leader Akamai (NAS: AKAM) blew past the forecasters during the prior week.

Finally we have Sky-mobi (NYS: MOBI) showing that the sky isn't necessarily the limit. The Chinese app-store operator came through with an adjusted profit of $0.09 a share, well ahead of the $0.06 a share that analysts were expecting.

Moving in the right direction
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. If that's not up your alley just yet, you can still check out a free special report detailing the next trillion-dollar revolution.

Either way, come back next week to learn about more stocks that blew the market away in the coming days.

If these victors aren't enough, check out a new report that reveals three hidden winners in a booming niche that will only get bigger in the future. It's a free report, so check it out soon.

At the time thisarticle was published 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.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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement