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 pros over the past few trading days.
We can start with ZAGG (NAS: ZAGG) .
The company behind the invisibleSHIELD protective film covers and other accessories for tablets and smartphones saw its quarterly profit more than double to $0.27 a share. Analysts were settling for net income of $0.20 a share. With nearly a third of its shares sold short, trouncing expectations is one way to temporarily silence the skeptics.
The sky's the limit for priceline.com (NAS: PCLN) . The fast-growing travel website operator grew its adjusted earnings 58% to $5.37 a share in its latest quarter. Wall Street was banking on a profit of $5.05 a share. Analysts at Benchmark, RBC, and Stifel all bumped their prices targets higher -- to $692, $725, and $750 respectively -- after the strong report.
Finally we have Human Genome Sciences (NAS: HGSI) on the move. The biotech behind lupus treatment breakthrough Benlysta checked in with a quarterly deficit of $0.41 a share. Red ink isn't applause-worthy, but analysts figured that Human Genome Sciences would post a loss of $0.43 a share.
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.
At the time thisarticle was published 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.Motley Fool newsletter serviceshave recommended buying shares of priceline.com.Motley Fool newsletter serviceshave recommended writing naked calls on ZAGG. 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.
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