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, as I believe that's the biggest factor in whether a stock beats 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 maker of the invisibleSHIELD screen protector for portable touchscreen gadgets and other accessories for smartphones and tablets knew how to zag when market decided to zig. Earnings climbed 55% to $5.1 million, or $0.16 a share. Analysts were only holding out for a profit of $0.14 a share.

Investors shouldn't have been surprised. As a piggyback play on Apple (NAS: AAPL) , ZAGG was sure to make a strong showing after Apple sold 35 million iPhones and nearly 12 million iPads during the same three months.

American Tower (NYS: AMT) also stood tall, earning $0.56 a share when Wall Street was settling for net income of only $0.40 a share.

American Tower leases out space on its antenna towers to broadcasters and wireless carriers. There may not be a lot of growth on the broadcasting end, but obviously the smartphone boom finds carriers scrambling for better coverage. American Tower distributes its taxable income to investors as a REIT, so a strong showing on the bottom line should lead to higher payouts in the near future.

Finally we have Hain Celestial (NAS: HAIN) coming through with heavenly results. A day after Whole Foods Market (NAS: WFM) served up blowout quarterly results, the maker of organic and natural products -- many stocked at Whole Foods -- had a great report of its own.

Hain Celestial saw its shares buck Friday's market downtrend, rising 6% after serving up a profit of $0.54 a share. Analysts were expecting the company behind Celestial Seasoning teas, Terra snack chips, and Earth's Best baby food to clock in with net income of only $0.50 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.

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 The Motley Fool owns shares of The Hain Celestial Group and Whole Foods Market. The Fool owns shares of Apple.Motley Fool newsletter serviceshave recommended buying shares of American Tower, Whole Foods Market, Apple, and The Hain Celestial Group.Motley Fool newsletter serviceshave recommended creating a bull call spread position in Apple.Motley Fool newsletter serviceshave recommended writing naked calls on ZAGG. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree 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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