- “A maker of wearable fitness-tracking devices that monitor your activity, exercise, food, weight and sleep, FIT ran up 48% in its first day of trading (on June 18) and has scarcely slowed since. The company is clearly capitalizing on investors’ thirst for wearable technology, but its astonishing growth is what has kept it hot since its smash debut. Fitbit’s revenues increased 175% in 2014, and were up another 209% in the first quarter of this year. Meanwhile, the company turned its first profit last year, and expects to do so again in each of the next two years. That kind of demonstrated growth in a red-hot industry always gets Wall Street’s attention; it’s why Deutsche Bank, Stifel and SunTrust Robinson Humphrey have all initiated coverage on the stock with buy ratings. The fitness band market is likely in its early stages and Fitbit holds a 67% market share, making it far and away the best pure play on the burgeoning industry. Next month’s earnings report will be the company’s first real litmus test since coming public. Until then, Fitbit’s honeymoon appears far from over.”
Plus, looking back at my example of IBM, Microsoft and Apple as consecutive kings of the hill in the computing industry, there’s a decent case to be made for Fitbit to be next!
The one clear trend of the decades—aside from computers getting smaller, faster and cheaper—is that computers keep getting more personal. The Apple Watch is Apple’s latest and most personal device and Fitbit is the new kid on the block, with unlimited potential if its managers make the right moves.
And its stock recently broke out to new highs!
So, you could simply jump into FIT somewhere around here—perhaps on the next normal correction—and hope for the best.
But a wiser course would be to become a regular reader of Cabot Top Ten Trader, so you can not only get Mike Cintolo’s updated opinion on the stock but also keep on top of all the high-potential momentum stocks he’s following. It’s a great place to find the next AAPL!
405 Howard Street
San Francisco, CA 94105
Index Membership: N/A
Industry: Scientific & Technical Instruments
Full Time Employees: 579