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 Winnebago (NYS: WGO) .
The RV giant saw its quarterly profit roughly triple to $0.13 a share, just ahead of the $0.12 a share that Wall Street was forecasting. Winnebago couldn't have made it without its trailer business. Winnebago acquired SunnyBrook toward the end of 2010 to gain some traction in the more economical towable market. After a few quarters of losses the division delivered its first accretive quarter.
Lower gas prices also have to be helping the seller of these homes on wheels.
Kroger (NYS: KR) also checked out ahead of the pros. The supermarket chain may have made headlines by announcing that it would be selling its own store-branded K-Cups portion packs later this year -- a move that stung Keurig parent Green Mountain CoffeeRoasters (NAS: GMCR) -- but the grocer's report was also solid for its figurative bean counters.
Kroger's quarterly net income of $0.78 a share was comfortably ahead of the $0.72 a share that analysts were targeting.
Finally we have Michael Kors (NAS: KORS) dressing up nicely. The fashionable designer and retailer saw its quarterly earnings more than double to $0.22 a share. The pros were settling for a profit of $0.16 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, except for Green Mountain. Rick is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.The Motley Fool owns shares of Winnebago Industries.Motley Fool newsletter serviceshave recommended buying shares of Green Mountain Coffee Roasters.Motley Fool newsletter serviceshave recommended creating a lurking gator position in Green Mountain Coffee Roasters. 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.
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