U.S. markets closed

Fitbit (FIT) Expands Share in Wearable Space With Charge 4

Zacks Equity Research

Fitbit FIT is firing on all cylinders to bolster presence in the wearable and fitness world on the back of robust technologies and innovative products.

Recently, the company unveiled its latest and advanced fitness tracker called Charge 4. The new device comes with GPS and allows users to subscribe to music streaming apps like Spotify.

With the latest move, Fitbit expands its family of Charge devices. Consequently, the product portfolio has expanded, which bodes well for its market share.

New GPS Feature to Drive Demand

The physical appearance of the new device remains almost same as Fitbit Charge 3, with an inductive button, 1.36-inch display and swappable band system. Priced at $150, the device is swim proof, with a battery life of seven days.

The new addition in this device is the built-in GPS for location tracking. The inclusion of GPS will allow a user to perform workouts or jogging sessions without a phone.

Moreover, the new Fitbit Pay feature will allow users to make payments without phone, making it easy and convenient.

We believe the company will be able to strengthen the adoption rate of its products, thanks to strong efforts toward technical innovation. Consequently, this will expand the customer base and drive top-line growth.

Fitbit, Inc. Price and Consensus

 

Fitbit, Inc. Price and Consensus

Fitbit, Inc. price-consensus-chart | Fitbit, Inc. Quote

Bottom Line

Fitbit is a global brand with a first-mover advantage and is one of the leading providers of wearable fitness trackers. Being one of the first to market these devices, the company has been able to build a knowledge base about users’ fitness habits and demand for health monitoring devices.

However, recently, Fitbit has been grappling with mounting competition from companies such as Apple AAPL, Garmin GRMN, Samsung Electronics Co, as well as China's Huawei Technologies Co Ltd and Xiaomi Corp.

Notably, last year, Fitbit had entered into a definitive agreement to be acquired by Google. The deal will likely help the company to accelerate innovation in the wearables category. This acquisition will enable Fitbit to invest heavily in research and product development, and compete better in the wearables market.

Notably, the Charge 4 is Fitbit’s first tracker after the company was acquired by Google. Fitbits’s continuous efforts toward enhancing product offerings should help it to at least gain some momentum in the growing wearable and fitness market.

Zacks Rank & Stock to Consider

Currently, Fitbit carries a Zacks Rank #4 (Sell). A better-ranked stock in the broader technology sector is Stamps.com Inc. STMP, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Stamps.com is currently projected at 15%.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Apple Inc. (AAPL) : Free Stock Analysis Report
 
Garmin Ltd. (GRMN) : Free Stock Analysis Report
 
Fitbit, Inc. (FIT) : Free Stock Analysis Report
 
Stamps.com Inc. (STMP) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research