Fitbit Inc.’s (FIT - Free Report) growth has been undeniably hampered by popularity of smartwatches in the fitness wearable category, increasing competition and lack of upgrades among existing users.
However, the company is making every effort to fight its way back and has come up with its first wearable for children, namely Fitbit Ace.
Following the release, its share price has gained 14.65%. However, over the past 12 months, the company's shares have lost 38.9%, underperforming the industry’s rally of 54.8%.
Here Comes Ace — Children Wearable
This time Fitbit is trying its luck on an entirely new group of potential users — kids world — with its new wearable Ace. This device is aimed at eight years old children and older.
Priced at $99.95, Ace comes in two colors and has a battery life for up to 5 days. Similar to other Fitbit products, this device will also track users' steps. It has customized alerts that encourage children to move the required steps in a day and sleep for the suggested nine hours at night. In addition, it motivates kids by giving them reward points.
The best part is that parents are in touch with their children and can view their kid’s activity, and manage the stats they see in the app.
Fitbit, which became a prominent name for its simple fitness wearables, has been hurt by massive competition in the market. Even the launch of its flasgship Ionic and addition of innovative features have not helped it stay ahead of its competitors.
However, the entire wearable tech market seems to be doubling down on medical technology. With rising concerns regarding healthcare and fitness, and growing demand for wearables, Fitbit, instead of concentrating only on fitness wearables, has shifted its focus on diversification of product portfolio. The new Ace should allow Fitbit, which has always put health tracking at the forefront, to revive back as a leader.
For now, we need to wait for a while and see if Fitbit’s new Ace can help it gain any meaningfully share from the rising opportunities in the health care business.
Zacks Rank &Other Stocks to Consider
Currently, Fitbit sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the same industry include Groupon (GRPN - Free Report) , PetMed Express and Expedia (EXPE - Free Report) . While Groupon sports a Zacks Rank #1, PetMed and Expedia carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Groupon, PetMed and Expedia is currently projected to be 6.5%, 10% and 14.5%, respectively.
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