Penny Stocks in Fitness: Fitbit Stock, Still Undervalued?

Penny Stocks

The Fitbit penny stock was once selling for nearly $50 per share. Yes, it seemed everyone had Fitbit pegged as the next big thing in fitness back in 2015. And it was… for that year. By 2016, however, FIT stock more than halved, and from there it continued its decline. 

Penny Stocks: Fitbit (NYSE:FIT)

Now three years later, Fitbit shares are selling for just shy of the $5 mark. Few companies make such dramatic drops in only a few years. That means that from its early days of trading, FIT stock has dropped approximately 90% in value.

These are the kinds of discounts fashionistas dream of.

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But the question is, of course, is FIT stock worth its $4.90 price tag? Will this stock resurge or is the fad truly dead and gone?

FIT Stock

The company is synonymous with creating the trend for wireless wearable tech. In particular, those that monitor your activity levels, personal metrics, and fitness stats. So the American company will always have its name, which is still proudly touted by its wearers. The Fitbit brand remains strong. However, the market is now packed with cheaper, just as effective alternatives. As with any trend, it is copied multiple times over as competitors figure out how to make what you’re selling at a much cheaper price.

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As the market becomes more convoluted, demand has lessened for Fitbit, and the hype is over. Amazon is now able to sell the flagship Iconic watch for “$150, $120 off its $270 list price and $50 less than its Black Friday pricing.”

However, for investors, this stock has a P/S ratio of under .75, and it “shows over 20% short interest. Also, the company sees EPS growth over 50% next year.”

If this is the case and company sales do indeed grow at that rate the penny stock may soar.

For a penny stock under $5, FIT stock could be worth the risk. Its future is still bright, but you have to make the call, after all!

Featured Image: Depositphotos © Paulpaladin