What Makes CarParts.com (PRTS) an Attractive Investment?

Wasatch Global Investors, an asset management company, released its “Wasatch Micro Cap Value Strategy” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy outperformed the Russell Microcap Index which rose 4.72%. Stock selection in industrials, consumer discretionary, information technology, and consumer staples contributed to the strategy’s performance in the quarter while stock selections in energy detracted from the performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Wasatch Micro Cap Value Strategy highlighted stocks like CarParts.com, Inc. (NASDAQ:PRTS) in the Q4 2022 investor letter. Headquartered in Torrance, California, CarParts.com, Inc. (NASDAQ:PRTS) provides an online platform for aftermarket auto parts and accessories. On March 29, 2023, CarParts.com, Inc. (NASDAQ:PRTS) stock closed at $5.12 per share. One-month return of CarParts.com, Inc. (NASDAQ:PRTS) was -19.50%, and its shares lost 23.58% of their value over the last 52 weeks. CarParts.com, Inc. (NASDAQ:PRTS) has a market capitalization of $285.054 million.

Wasatch Micro Cap Value Strategy made the following comment about CarParts.com, Inc. (NASDAQ:PRTS) in its Q4 2022 investor letter:

“Regarding purchases during the fourth quarter, we initiated a new position in CarParts.com, Inc. (NASDAQ:PRTS), an online provider of low-cost aftermarket auto parts and accessories. The company recently posted strong earnings, and we believe it’s positioned well to benefit amid a softer economy in the months ahead—particularly as struggling consumers opt to fix rather than replace their cars or to do the necessary repairs themselves. With a stock price approximately 75% lower than the high in early 2021, we believed the recent valuation provided an attractive entry point for investment in a fundamentally strong business. Moreover, we’re impressed with CarParts.com’s new chief operating officer, who joined from Amazon.com and who has a reputation for increasing sales and improving margins.”

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CarParts.com, Inc. (NASDAQ:PRTS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held CarParts.com, Inc. (NASDAQ:PRTS) at the end of the fourth quarter which was 22 in the previous quarter.

We discussed CarParts.com, Inc. (NASDAQ:PRTS) in another article and shared the list of cash-rich small cap stocks to invest in. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.