Fitbit And 4 Other Great Growth Stocks To Buy Now

The third quarter earnings season is nearing its end with the majority of the S&P 500 companies having already reported their results. The performance led to an uptrend in the U.S. stock market with The Dow Jones industrial average rising 6.4%, the S&P 500 index recovering another 6.1%, and the Nasdaq Composite gaining 8.0% in the past month.

Such a great rebound took us by surprise, particularly after the August bloodbath, which made investors apprehensive about the market’s near-term future.

But solid earnings reports from a large number of companies lead us to believe that August was more of a mishap than a trend and the multi-year bull story remains intact. In fact, there are many stocks that are showing strong, stable growth metrics in the face of an arguably challenging macro environment.

Take for instance, FitBit Inc. (FIT - Analyst Report).

FitBit

Founded in 2007 and headquartered in San Francisco, Fitbit specializes in wearable activity tracking devices that record personal data, including the number of steps taken, distance traveled, calories burned, and other wellness related metrics.

On Nov 2, Fitbit reported third-quarter 2015 earnings per share (EPS) of 19 cents, which trounced the Zacks Consensus Estimate of 5 cents by a whopping 280%. Also, revenues of $409.3 million were up a massive 167.7% year over year. This exceeded management’s guidance of $335–$365 million and surpassed the Zacks Consensus Estimate of $347.0 million by 18%.

Also, during the quarter, FitBit added innovative features to its existing products, increased brand awareness, and expanded global distribution, which will significantly enhance user experience across the Fitbit platform and thus drive growth.

For the performance outlined above, investors shouldn’t be surprised to note that FitBit has earned itself a growth score of ‘A’ as well as a Zacks Rank #2 (Buy). This means that we believe that the stock is a potential outperformer and an impressive choice for growth investors.

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