3 Stocks That Blew the Market Away

Updated

Don't settle for ordinary quarterly reports.

Every week, 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 Monsanto (NYS: MON) . The agricultural chemicals behemoth saw its fiscal second-quarter earnings climb 19% to $2.28 a share, well ahead of the $2.12 a share that analysts were expecting. Agribusiness promises to be a strong sector in an improving global economy with emerging markets growing even faster.

Pier 1 Imports (NYS: PIR) is also playing by the cardinal rule that the house always wins. The home furnishings retailer posted a profit of $1.04 a share during its holiday quarter, more than double the $0.48 a share that Wall Street was projecting.

That's a lot of money earned by a company that saw its stock trade as low $0.10 a share just three years ago. Things are going so well for Pier 1 these days that it reinitiated a dividend distribution policy last week after a six-year break.

Finally, we have Bed Bath & Beyond (NAS: BBBY) living up to the "Beyond" part of its moniker. The housewares retailer earned $1.48 a share in its fiscal fourth quarter. A robust 6.8% spike in same-store sales helped lead the holiday charge. The pros were expecting $1.33 a share, but those estimates can now be tossed into the hamper.

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 Bed Bath & Beyond. Motley Fool newsletter services have also recommended creating a synthetic long position in Monsanto. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.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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