3 Stocks That Blew the Market Away
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 Intuitive Surgical (NAS: ISRG) .
The company behind the da Vinci surgical robots that have revolutionized operating tables at a growing number of hospitals for certain procedures earned $3.75 a share in its latest quarter, blowing past the pros who had it pegged at $3.35 a share.
Shares of the medical robotics darling still took a hit after posting blowout numbers, largely the result of projecting 17%-19% in top-line growth for the year ahead. Sure, this is a noticeable deceleration from its headier growth in the past, but Intuitive Surgical also has a way of playing down its prospects. How else do you think it has beaten analyst profit estimates for 11 quarters in a row now?
Freeport-McMoRan (NYS: FCX) came out a few copper pennies ahead of the prognosticators. The copper and gold miner did see its profitability slide 59% to $0.67 a share, but that was still better than the $0.60 a share that Mr. Market was targeting.
Freeport-McMoRan had a rough 2011. Copper prices tanked and a strike at an Indonesian mine ate into its production. It's off to a better start in 2012.
Finally we have Goldman Sachs (NYS: GS) with a story similar to Freeport-McMoRan, minus the Indonesian strikes. A 21% slide in trading revenue found net income dipping to $1.84 a share, but that was well ahead of the $1.24 a share the market was bracing itself for.
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 this article 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 Freeport-McMoRan. 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 Freeport-McMoRan Copper & Gold.Motley Fool newsletter serviceshave recommended buying shares of Intuitive Surgical. 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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