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 FuelCell Energy (NAS: FCEL) . The company posted a slightly narrower deficit than the $0.06 a share loss that Wall Street was expecting. FuelCell also inked a contract to supply Korea's Posco -- the world's third largest steelmaker and FuelCell's largest shareholder -- with a big order for fuel cell units. Ardour Capital upgraded the stock on the double dose of welcome news.

GeoEye (NAS: GEOY) also has its eye on the prize. The company that takes high-resolution snapshots of our terrain from satellites delivered an adjusted profit of $0.76 a share in its latest quarter, well ahead of both the $0.42 a share it earned a year earlier and the $0.58 a share that the pros were projecting.

GeoEye's guidance isn't as scintillating on the growth front. The midpoint of its outlook for 2012 -- calling for revenue to come in between $355 million and $375 million and earnings per share of $1.95 to $2.35 -- is essentially where it landed in 2011. However, a beat is a beat.

Finally we have Francesca's Holdings (NAS: FRAN) dressing up nicely. The clothing boutique operator's quarterly profit of $0.20 a share handily beat the pros perched at $0.17 a share. Francesca's Holdings stocks limited amounts of new styles, aiming to give shoppers reasons to keep coming back more often. After going public last year, the retailer has come through with back-to-back quarters of analyst-thumping results.

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 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 GeoEye. 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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