Did You Miss Navitas Petroleum Limited Partnership's (TLV:NVPT.L) 58% Share Price Gain?

By buying an index fund, investors can approximate the average market return. But if you buy good businesses at attractive prices, your portfolio returns could exceed the average market return. Just take a look at Navitas Petroleum, Limited Partnership (TLV:NVPT.L), which is up 58%, over three years, soundly beating the market return of 23% (not including dividends).

View our latest analysis for Navitas Petroleum Limited Partnership

Navitas Petroleum Limited Partnership wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

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

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

A Different Perspective

Navitas Petroleum Limited Partnership shareholders are down 37% for the year, but the broader market is up 3.0%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Fortunately the longer term story is brighter, with total returns averaging about 16% per year over three years. The recent sell-off could be an opportunity if the business remains sound, so it may be worth checking the fundamental data for signs of a long-term growth trend. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 1 warning sign for Navitas Petroleum Limited Partnership that you should be aware of before investing here.

But note: Navitas Petroleum Limited Partnership may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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

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This article by Simply Wall St is general in nature. 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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