IB Net Payout Yields Model

Fitbit: Holiday Special

Fitbit (FIT) is one of the top downloaded apps over the holidays as people get fitness trackers as holiday gifts. The stock is in a precarious position where Fitbit could close the gap from the surge following Q3 earnings, yet the related company is expecting a strong quarter.

The amazing part is that those results signaled a turn in the business. The stock is exceptionally cheap here around $5. The key is knowing that any further weakness in the stock is technical in nature and not any signal of weak holiday sales. Fitbit could easily retest $4.50 based on this chart.

The stock shouldn't trade at an EV 0.5x sales estimates while the company is shifting towards a med tech future. The stock would make a great stocking stuffer.

Disclosure: Long FIT. Please review the disclaimer page for more details. 


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