Fitbit, Inc. (FIT - Free Report) recently enhanced the features of its Fitbit Ionic, Fitbit Ionic: adidas edition and Fitbit Versa smartwatches, by introducing the OS 3.0 update. The latest update is aimed at luring customers backed by innovative apps, partnering with popular fitness brands and making mammoth of health-care data available.
The update also provides users in-depth information about their health, which includes water intake, sleep cycle, weight, and heart rate amongst others. This data will enable users to take actions and achieve their fitness goals accordingly.
Moreover, the company has joined forces with popular brands like achu health, Couch to 5K, Genius Wrist and MySwimPro, who will be given access to the user’s health data, and will offer guidance to help users achieve their fitness goals.
Fitbit will also roll out another remarkable feature in 2019, which will help women track their menstrual-cycle data and symptom trends, all on the same platform. The company continues to ramp up its efforts to bolster presence in the wearable and fitness world on the back of its robust technologies and innovative products.
Coming to price performance, Fitbit’s shares have lost 15.4% on a year-to-date basis, as against the industry’s rally of 24.4%.
Growing Trend for Smartwatches
The fitness tracker space is currently experiencing growing proliferation of wearables globally, due to comfort and ease that these products provide in tracking fitness.
Per reports from CCS Insight, total sale for smart wearables is expected to reach 117 million devices by the end of the 2018. The firm expects this figure to double by 2022 and reach 233 million.
Fitbit sold a stupendous 3.5 million wearable devices in the third quarter, increasing 29.6% sequentially. The company also increased its average selling price by 3% seeing the on-going momentum in the wearables space. The strong sale of its smartwatch devices and trackers fueled growth in the last reported quarter.
Given immense growth opportunities, other tech giants like Apple (AAPL - Free Report) , Garmin (GRMN - Free Report) and Google (GOOGL - Free Report) are also undertaking strong efforts to strengthen their market position.
Fitbit, Inc. Price and Consensus
Solid Product Portfolio: Key Growth Driver
Fitbit continues to expand its portfolio with product launches, which bodes well for the company in near term.
This October, the company announced the availability of its latest wearable called Charge 3, which is equipped with a swim-proof design, a larger touchscreen display and an extended battery life of up to seven days.
In September 2018, the company also partnered with Humana, in order to help people, improve health culture and prevent chronic diseases. With rising concerns surrounding healthcare and fitness, and increasing chronic diseases, such partnerships and product launches will help fortify Fitbit’s competitive position and expand its customer base.
Currently, Fitbit carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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