Clean Energy Fuels Corp (CLNE), Compass Diversified Holdings (CODI): Three Predictions for Next Week

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Compass Diversified Holdings (NYSE:CODI) owns several middle-market businesses. From printed circuit boards to gun safes — from upholstered furniture to personal hydration products — Compass Diversified Holdings (NYSE:CODI) lives up to the “Diversified” in its moniker.

Another thing it does is make analysts look like perpetual underachievers. If analysts say that the company posted a profit of $0.36 a share in its latest quarter, I’ll whip out a “greater than” sign. History’s on my side!

One of my best tricks to beating the market is finding stocks that perpetually land ahead of the prognosticators. Let’s go over the past year of earnings reports.

Quarter EPS Estimate EPS Surprise
Q1 2012 $0.24 $0.34 42%
Q2 2012 $0.37 $0.48 30%
Q3 2012 $0.39 $0.47 21%
Q4 2012 $0.27 $0.31 15%

Source: Thomson Reuters.

Things can change, of course. With so many moving parts, any of Compass Diversified Holdings (NYSE:CODI)’s eight businesses can bump into turbulence. The motivation to keep its impressive high yield sustainable may force the company into taking risky chances that don’t pan out.

However, it’s hard to argue against the trend. Everything seems to be falling into place for another market-thumping quarter on the bottom line.

Three for the road
Well, there are three predictions right there. Let’s see how I fare this week.

The article 3 Predictions for Next Week originally appeared on Fool.com and is written by Rick Munarriz.

Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Clean Energy Fuels and owns shares of Sturm, Ruger.

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