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Investors in CarParts.com (NASDAQ:PRTS) have made a incredible return of 934% over the past three years

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It hasn't been the best quarter for CarParts.com, Inc. (NASDAQ:PRTS) shareholders, since the share price has fallen 18% in that time. But over three years the performance has been really wonderful. Over that time, we've been excited to watch the share price climb an impressive 934%. So you might argue that the recent reduction in the share price is unremarkable in light of the longer term performance. The thing to consider is whether there is still too much elation around the company's prospects. It really delights us to see such great share price performance for investors.

Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business.

Check out our latest analysis for CarParts.com

Because CarParts.com made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Over the last three years CarParts.com has grown its revenue at 22% annually. That's well above most pre-profit companies. And it's not just the revenue that is taking off. The share price is up 118% per year in that time. It's always tempting to take profits after a share price gain like that, but high-growth companies like CarParts.com can sometimes sustain strong growth for many years. So we'd recommend you take a closer look at this one, or even put it on your watchlist.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
earnings-and-revenue-growth

This free interactive report on CarParts.com's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's good to see that CarParts.com has rewarded shareholders with a total shareholder return of 47% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 37% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand CarParts.com better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 4 warning signs for CarParts.com you should know about.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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