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 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 7 Days (NAS: SVN) . The fast-growing lodging provider in China checked in with an adjusted profit of $0.70 a share, blowing past analysts targeting $0.48 a share in earnings. All three of the publicly traded Chinese hospitality specialists reported last week, but 7 Days was the only winner. Rivals Home Inns & Hotels (NAS: HMIN) and China Lodging Group (NAS: HTHT) actually posted quarterly results that fell woefully short of Wall Street forecasts.

China Automotive Systems (NAS: CAAS) also drove ahead of the market. The supplier of power steering components and systems did post a small dip in net sales and a slightly larger decline in net income, but its $0.19 a share showing on the bottom line was well ahead of the $0.15-a-share mark where Mr. Market was parked.

This one is truly a refreshing surprise, since China Automotive had come up short on the bottom line in its four previous quarterly reports.

Finally, we have 3SBio (NAS: SSRX) on the move. The provider of cost-effective research, development, manufacturing, and distribution of pharmaceutical products came through with a blowout quarter, fueled by a 38% surge in net revenue.

Wall Street was aggressive here, expecting profitability to nearly triple. Well, 3SBio's net earnings of $0.16 a share actually more than tripled last year's $0.05 a share showing.

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 three 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 Motley Fool newsletter services have recommended buying shares of 3SBio. Try any of our Foolish newsletter services free for 30 days. 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.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.

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