Here is a closer look at five companies that recently topped sales and profit expectations while raising guidance. The stocks could be good long-term plays.
Apple
The stock trades at 12 times this year's earnings estimates, well below its 10-year average of 47.
What's next? Technology that brings the computer to your TV, analysts say. Apple could use a new hit, since it is facing tough competition from smartphones running the Android operating system from Google (GOOG, news).
Caterpillar
Caterpillar (CAT, news), the world's largest construction-equipment maker, recently agreed to buy mining-equipment manufacturer Bucyrus International (BUCY, news).
"This could be a $150 stock in a couple years," says Craig Hodges, co-manager of the Hodges (HDPMX) fund.
Some critics, however, say it's better to grow profits organically than to pay top dollar to buy a company.
Tempur-Pedic
One might think high-end mattresses would be a tough sell in a shaky economy. Not so for those made by Tempur-Pedic International (TPX, news).
The Lexington, Ky., company recently beat quarterly earnings estimates by an impressive 16%. "They have knocked the cover off the ball," says Hodges, a shareholder.
Acme Packet
Acme Packet (APKT, news) makes devices that help send data across Internet-protocol networks. The Bedford, Mass., company invented the session border controller, which has become more important as more video and voice data have gone online.
Investors are paying a hefty premium for the stock, however; it trades at 60 times this year's expected earnings.
Altera
This San Jose, Calif., company makes programmable logic devices used in communications network gear, consumer electronics and industrial equipment.
Sales to China contributed one-third of its 2010 revenue of nearly $2 billion.
Some on Wall Street doubt that Altera can keep growing rapidly, but the company continues to surprise to the upside, says Patrick Newton, a semiconductor analyst with investment bank Stifel Nicolaus.
This article was reported by Elizabeth O'Brien for SmartMoney.



