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Fitbit Slumps: FIT Falls 12.4% in Session

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Fitbit Inc. (FIT - Free Report) saw a big move last session, as the company’s shares fell over 12% on the day. The move came on pretty good volume too with far more shares changing hands than in a normal session. This continues the recent downtrend for FIT, as the stock is now down nearly 37% since Jan 4.

Fitbit has been unable to convince investors that its recently launched Blaze smartwatch will be able to keep its competitors at bay. Secondly, filing of a class-action lawsuit against Fitbit which claims that the company falsely advertised its heart rate tracking technology, PurePulse, as an accurate heart rate measure has added to the woes.

This manufacturer and marketer of wearable fitness-tracking devices has seen a flat track record when it comes to current year estimate revisions over the past few weeks and the consensus for earnings hasn’t been in a trend either. This recent price action is discouraging, so make sure to keep a close watch on this firm in the near future, and especially on earnings estimates following the recent slump.

FIT currently has a Zacks Rank #4 (Sell) while its Earnings ESP is 0.0%.

A better-ranked stock in the same sector is Orbotech Ltd. , holding a Zacks Rank #2 (Buy).

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