Don't settle for ordinary quarterly reports.
Every week, I take a look at three companies that beat market expectations, 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 Intuitive Surgical (NAS: ISRG) .
You've got to hand it to the company behind the da Vinci robotic arm surgical system. Hospitals may be scaling back on expenditures, but Intuitive Surgical's system is too much of a win-win for administrations to gloss over: less fatigue and more procedures for surgeons; cleaner incisions and faster recovery times for patients.
You also have to hand it to Intuitive Surgical's ability to operate on prognostications. After earning $3.54 a share last week -- ahead of the $3.51 a share that Wall Street was forecasting -- Intuitive Surgical has now beaten analyst profit targets for 14 consecutive quarters.
Joe's Jeans (NAS: JOEZ) also managed to beat the pros -- one leg at a time.
The sellers of premium denim at the retail and wholesale level surprised the market with a quarterly profit of $0.02 a share on a 25% surge in net sales. Wall Street was banking on a small deficit. With premium apparel selling so well, it leads one to wonder why larger rival True Religion (NAS: TRLG) may be considering an exit strategy instead of milking this welcome trend a bit longer.
Finally, we have Uranium Energy (ASE: UEC) stepping up. Even though the spot price of uranium continues to trade at a premium to the marginal cost of conventional mine production at $45 a pound, Uranium Energy still posted a quarterly loss. The good news here is that the uranium producer's deficit of $0.05 a share was slightly less than what the market was expecting.
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.
The article 3 Stocks That Blew the Market Away originally appeared on Fool.com.
Longtime Fool contributor Rick Aristotle Munarriz has no positions in the stocks mentioned above. The Motley Fool owns shares of Intuitive Surgical. Motley Fool newsletter services recommend Intuitive Surgical and True Religion Apparel. 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.