A "Super 10" Stock: A Spinoff — And an “Earnings Trifecta”

As part of its marketing campaigns, the Holiday Inn used to use this terrific slogan: “The best surprise is no surprise.”

Great slogan. Memorable. And probably the kind of message travelers wanted to hear.

But what’s true for travelers isn’t true for Big Money investors or the sell-side crowd on Wall Street.

I’ll grant you, from the 20 years I spent as a business reporter covering big public companies, I know for a fact that analysts hate bad surprises — otherwise known as “Earnings Disappointments.”

But those same analysts love “Upside Surprises.”

And there’s one surprise that trumps them all … the “Ultimate Upside Surprise.”

It’s so good, in fact, that I created a special name for it: I called it the “Earnings Trifecta.”

And I use it to describe a company whose earnings report:

• Exceeds estimates on revenue (the top line).

• Beats estimates on the profits (the bottom line).

• And then boosts “forward guidance.”

That, folks, is the “Ultimate Upside Surprise.”

And one of our “Super 10” stocks — in the Special Situation Portfolio we crafted for our SPC Premium family members — just delivered that “Earnings Trifecta.”

Even better: We made it one of our Super 10 stocks late last year thanks to a breakup plan that would create hyper-focused businesses in super-promising sectors.

And that company just revealed that it’s “fast-tracking” that breakup.

That means the “Ultimate Payoff” could come even sooner than we expected.

Subscribe to our premium content to read the rest.