Out Fox The $treet

As predicted here, Fitbit ( FIT ) was an easy purchase below $5 last year. The stock was insanely cheap with the cash balance and revenue stream. The move toward medical devices offered a huge upside catalyst.

Fitbit (FIT) completed another successful holidays where their app ranked in the top 5 locations on the iPhone in 6 countries. In the Health & Fitness category, the Fitbit app reached the top rank in 29 countries.

The recent Gartner forecast on global wearables shipments is ultra-bullish for Fitbit (FIT) . The research firm forecasts shipments to triple from 141 million in 2017 to 453 million in 2022. Fitbit is a big player in the Smartwatch category and Gartner specifically points out the promises of medical devices what the fitness tracking company is just now entering. The best story for investors is that the stock only trades at a market value of $1.3 billion with a sizable balance sheet. Risk always exists with a stock, but Fitbit offers an incredible reward, if the company gets the wearables trend correctly over the next few years. Disclosure: Long FIT. Please review the disclaimer page for more details. 

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. 

The biggest takeaway from the Apple event this week were the medical features on the Series 4 watches. Fitbit has plenty of work in the process on FDA clearance for medical monitoring functions. The stock dip back below $5.50 provides enormous value for a stock with an EV below $1 billion. At the   Apple   ( AAPL ) event on September 12, the tech giant unveiled the new Watch Series 4 along several new iPhones. In response,   Fitbit   ( FIT ) dipped nearly 7% to the $5.50 range providing the long awaited opportunity to buy fear induced weakness on the smartwatch and fitness tracker stock. The catalyst to the story is that Apple ushered in the era of the smartwatch as a med-tech device that will ultimately boost the struggling Fitbit. Read the full article at Seeking Alpha.  Disclosure: Long FIT, AAPL. Please review the disclaimer page for more details.   

The story surrounding Fitbit (FIT) remains one of getting the growing wearables market in tune with product development. The stock remains one worth the gamble after reviewing Q4 market data.

Fitbit has a pristine balance sheet to help the wearables company navigate a developing sector. The company bought the correct technologies to advance product development, but has failed to correctly integrate the assets. The opportunity still exists to grow on several fronts, making the stock a speculative buy on the Q4 induced weakness. My  investment thesis  on  Fitbit  ( FIT ) has long held that the stock was a worth a gamble around $5 do to the option to benefit from the potential in the wearables market. Based on  2018 guidance , the stock remains a solid gamble and far from trouble. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details.