QuickLogic (NASDAQ:QUIK) soars 21% this week, taking three-year gains to 62%

By buying an index fund, investors can approximate the average market return. But if you pick the right individual stocks, you could make more than that. For example, the QuickLogic Corporation (NASDAQ:QUIK) share price is up 62% in the last three years, clearly besting the market return of around 36% (not including dividends).

The past week has proven to be lucrative for QuickLogic investors, so let's see if fundamentals drove the company's three-year performance.

Check out our latest analysis for QuickLogic

Because QuickLogic 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Over the last three years QuickLogic has grown its revenue at 22% annually. That's much better than most loss-making companies. The share price rise of 17% per year throughout that time is nice to see, and given the revenue growth, that gain seems somewhat justified. If that's the case, now might be the time to take a close look at QuickLogic. If the company is trending towards profitability then it could be very interesting.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

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

A Different Perspective

QuickLogic shareholders are down 36% for the year, but the market itself is up 24%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 10% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand QuickLogic better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for QuickLogic you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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

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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.