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

This "Special-Situation" company just boosted its 2025 outlook ...

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Stock Picker's Corner
Feb 18, 2025
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A "Super 10" Stock: A Spinoff — And an “Earnings Trifecta”
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As part of its marketing campaigns, the Holiday Inn used to use this terrific slogan: “The best surprise is no surprise.”

Postcard Holiday Inn - Best Surprise is No Surprise - Galaxy - Bradley Illinois - Picture 1 of 2
Source: eBay

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.

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