Three Estimate-Beating Stocks That Have Not Appreciated Yet: Qualcomm, Inc. (QCOM) and More

With earnings season in full swing, investors are waiting every day to see how companies were able to round out the end of the year. Like most years surprises in earnings reports fill the news. This year we have seen surprises like Apple Inc. (NASDAQ:AAPL) beating estimates but still slipping in stock price and losing its throne of the largest market cap for a short period of time. Apple is not alone, however; these three stocks also have beaten analyst estimates but have had their stocks fall since their earnings were reported.  This could give an investor a chance to buy shares in growing companies before the general public starts to buy also.

Exxon Mobil Corporation (NYSE:XOM) posted their earnings on Feb. 1, beating estimates by $0.20 and posting an EPS of $2.20. On Feb. 1 ExxonMobil was trading at $90.50 per share but fell to a recent low of $86.59, and as of writing this is at $88.52. This slight drop gives investors a chance to jump in on the largest company in the world by revenue and profit. The latest earnings report continues a trend of increasing yearly EPS for the third year.  In 2010 yearly EPS was $6.24, but fast forward to 2012 and yearly EPS is $9.70. The market has yet to adjust to the positive trend that was confirmed on the first of February, so investors should take the opportunity to see how much higher ExxonMobil can continue to go.

Qualcomm, Inc. (NASDAQ:QCOM) beat analyst estimates of $1 by earning $1.12 per share in their fourth quarter of 2012. Since releasing their earnings on Jan. 30 the stock has not seen any gain propelled by beating estimates; in fact, the stock has fallen slightly and is currently at $65.53 per share, compared to its price of $67.44 after releasing earnings. Qualcomm is still a strong buy and should be viewed even more as such after ending 2012 on a high note. Q4 of 2012 continues what has been years of solid revenue growth. In 2010 revenue for Qualcomm was $11.6 billion, and now in 2012 revenue has almost doubled to $20.4 billion. EPS has increased from $2.20 to $3.87 in the same time period. With its royalties on almost every 3G and 4G phone sold, Qualcomm will have plenty of revenue growth in its future to continue this trend.

Deere & Company (NYSE:DE) crushed analyst expectation of $1.41 in EPS by posting EPS of $1.65. First quarter revenue was a record $7.42 billion, an 11% increase from Q1 of 2012. The market, however, has yet to respond to the earnings released on Feb. 13; priced at $93.69 on the 13th, Deere has fallen to $90.57 as of writing this article. Just like the two previously mentioned companies, revenue and EPS have both been increasing over the past few years, with 2010 revenue and EPS recorded at $23 billion and $4.39 respectively, while 2012 revenue was $34 billion and EPS was $7.73. Now is a good time to invest in Deere before the market starts following suit. With years of increasing revenue and EPS Deere would be a buy recommendation, but since posting the record breaking Q1 numbers 2013 should continue to be a strong year for the agriculture equipment manufacturer.

The article Three Estimate-Beating Stocks That Have Not Appreciated Yet originally appeared on Fool.com and is written by Howard Cranford.

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