While the stock of Fitbit (FIT) has traded in the dumps for the last couple of years, The company has quietly acquired a lot of technology. In that regard, the fitness wearables company acquired Twine Health for the health coaching platform.
The market constantly focuses on devices sold, but Fitbit is quickly moving into services like coaching and data. The company now claims an active user base of over 25 million users.
The problem hurting the stock is consistently revenue growth due to a business model based on lumpy product sales. Once Fitbit gets the next cycle correctly and shows some stable revenue growth, the stock has the ability for a nice rally.
Fitbit is currently worth about $1.2 billion while analysts forecast revenue growing to over $1.7 billion in 2018. Considering Garmin (GRMN) trades at about 4x sales due to consistent profits, Fitbit has plenty of upside by executing on this plan to expand the platform via technology and software upgrades.
More consistent revenue growth that turns highly profitable would make Fitbit a bargain at $5.20.
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