Fitbit, Inc. (FIT - Free Report) recently partnered with WellCare of Georgia, a WellCare Health Plans, Inc. company , in order to help improve health culture and manage diabetes of the people of the state.
Per the partnership, Fitbit will offer its devices to WellCare Medicaid members in Georgia after they complete their annual diabetic eye exams.
The partnership will help to reduce the risk of type 2 diabetes among WellCare members. This move is aimed at improving care management among users through positive thinking and physical exercise.
Growing Diabetes Market
Of late, the diabetic device market is expanding in leaps and bounds. The disease is on the rise and is no longer attributable to rich nations only. Per a latest World Health Organization data, the global prevalence (age-standardized) of diabetes has nearly doubled since 1980.
Per a research report, more than 30 million of American adults are affected by type 2 diabetes annually. Direct medical expenses account for around $327 billion on an annual basis. Yet, the onset of the disease can be delayed or even prevented among the 84 million U.S. adults by taking proper care.
Reportedly, in Georgia, more than one in 10 adults currently suffers from Type 2 diabetes. Without proper care, Type 2 diabetes can impact many areas of the bodylike eyesand increase the risks of glaucoma, cataracts, diabetic retinopathy, and even blindness.
According to a Markets and Markets report, the global diabetes care device market is projected to reach $2.3 billion by 2020,at a CAGR of 6.3%.
The recent partnership with WellCare should help Fitbit expand share in the healthcare space.
Fitbit, Inc. Price and Consensus
Fitbit’s prospects look bright since the company is focused on developing new features and services, increasing brand awareness, as well as expanding its global distribution & presence in the corporate wellness market.
Fitbit has been working with leading medical institutions, in turn helping researchers overcome major challenges and engage patients in better ways. It offers a corporate wellness program to entities like self-insured businesses, thereby boosting prospects.
The latest deal is inline with the company’s strategy of expanding share in the healthcare sector and generating more recurring revenues.
In addition, the partnership will help Fitbit stay ahead of competitors like Apple and other players that have been focusing on the health care market. Notably, this partnership might prove appealing to others in the industry as well and expand Fitbit’s customer base.
Zacks Rank & Stocks to Consider
Currently, Fitbit has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) and Itron, Inc. (ITRI - Free Report) , each carrying 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 MACOM Technology andItron is currently projected at 15% and 25%, respectively.
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