Fitbit, Inc. FIT recently announced a partnership with Keller Williams, which will help the latter to improve its health culture and employee wellness program.
Under the agreement, Fitbit will offer wearable devices at special prices and organize activity challenges at both national and local levels for more than 157,000 agents of Keller Williams across the United States.
Collaborating with Keller Williams will not only make its associates Fitbit’s prospective customers but also expand the latter’s brand awareness. Notably, Keller Williams’ agents can also provide Fitbit devices at special prices as appreciation gifts to new home buyers and sellers at closing.
Shares of Fitbit have declined 4.5% year to date, underperforming the 18.1% rally of the industry it belongs to.
Corporate Wellness Holds the Key
Fitbit is expanding its enterprise business by selling fitness trackers and software subscriptions to employers as part of their corporate wellness programs. The company has already partnered with several enterprises and healthcare companies. It has over 1,300 enterprise customers and 70 of them are Fortune 500 companies.
The addition of Fitbit devices to the wellness programs of enterprises is expanding its footprint and improving brand awareness in the wearables market. These integrations are enabling the company to not only reach its partner’s employees but also to a much larger population.
This is expanding its customer base that bodes well for top-line growth.
Fitbit, Inc. Revenue (TTM)
Fitbit, Inc. Revenue (TTM) | Fitbit, Inc. Quote
Fitbit’s prospects look bright since the company is focused on developing new features and services, increasing brand awareness and expanding its global distribution & presence in the corporate wellness market.
Per IDC, the market for wearable devices is expected to increase to 240.1 million units by 2021, at a compound annual growth rate (CAGR) of 18.2%. The watch category is expected to contribute 67% to total wearables shipment by 2021, which is presently contributing 56.9%. This bodes well for the company.
Moreover, Fitbit has been working with leading medical institutions, helping researchers overcome major challenges and engage patients in better ways. It also became HIPAA compliant in 2015, which increased the company’s credibility. Fitbit provides its corporate wellness program to HIPAA-covered entities like self-insured businesses, which boosts its growth prospects.
Zacks Rank & Stocks to Consider
Fitbit has a Zacks Rank #3 (Hold).
Orbotech Ltd. ORBK, Aehr Test Systems AEHR and Keysight Technologies Inc. KEYS are some of the better-ranked stocks in the same industry. Orbotech, Aehr Test Systems and Keysight carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Orbotech, Aehr Test Systems and Keysight is projected to be 18.8%, 20% and 8.2%, respectively.
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