Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

3 Stocks That Blew the Market Away: Deckers Outdoor Corp (DECK), Dendreon Corporation (DNDN), Zagg Inc (ZAGG)

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 Deckers Outdoor Corp (NASDAQ:DECK).

The company behind Ugg boots and other stylish yet rugged outdoor footwear saw its shares move 15% higher last week after posting better-than-expected results.

It wasn’t pretty. Revenue only inched 2% higher, and profitability fell 23% to $2.77 a share as rising costs of sheepskin and other materials mauled margins. However, $2.77 a share is actually well ahead of the $2.57 a share that analysts were modeling.

Dendreon Corporation (NASDAQ:DNDN) also came through with solid results. The drugmaker’s deficit of $0.26 a share was less than half the red ink that Wall Street was targeting. This is a welcome development at Dendreon, as it had posted larger losses than analysts were banking on for 10 consecutive quarters until late last year.

Shares of Dendreon didn’t move on the beat, and there’s a good reason for that. Its flagship drug is Provenge, a costly yet compelling treatment for late-stage prostate cancer. Sales were up sequentially — and that’s encouraging — but Dendreon Corporation (NASDAQ:DNDN) warned of softness for the current quarter.

Finally, we have Zagg Inc (NASDAQ:ZAGG). The heavily shorted maker of accessories for tablets and smartphones generated a profit of $0.37 a share after backing out a non-cash impairment charge. Analysts were settling for net income of $0.29 a share.

Net sales had soared 30% at ZAGG, boosted by strong sales of keyboards that attach to tablets. Yes, Zagg Inc (NASDAQ:ZAGG) isn’t just about its invisibleSHIELD protective film covering anymore.

The article 3 Stocks That Blew the Market Away originally appeared on and is written by Rick Aristotle Munarriz.

Longtime Fool contributor Rick Aristotle Munarriz has no position in any stocks mentioned. The Motley Fool owns shares of Dendreon.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.