Fitbit FIT recently received clearance for its electrocardiogram (ECG) app from the U.S. Food and Drug Administration (FDA) for the identification of atrial fibrillation (AFib). The app also received Conformite Europeenne (CE) marking in the European Union.
The underlined ECG app that is integrated in the company’s most recently launched smartwatch, Fitbit Sense, assesses the heart rythm in order to detect AFib—an irregular heart rhythm.
Fitbit strives to help people in indentifying the existence of AFib condition effortlessly, which generally isn’t detected easily in the first clinical diagnostic procedure.
The latest approval is likely to aid the company in penetrating the multi-trillion healthcare industry rapidly.
ECG App to Drive Demand
Notably, AFib has become a common cause of strokes these days and its early detection remains crucial as it gives the opportunity to improve heart condition of the people suffering from it.
Hence, Fitbit Sense is well-equipped to curb the number of heart diseases caused by AFib, which in turn is expected to provide a breakthrough in the healthcare industry.
Notably, ECG app provides spot check reading of the heart that can be downloaded and shared with the doctor later for analysis.
We believe the inclusion of this app in Fitbit Sense is likely to bolster its adoption rate. This, in turn, will drive the company’s top-line growth.
Heart Health Care Efforts
The development of ECG app is in sync with the company’s deepening focus toward innovating solutions for better management of heart health via fitness trackers and smartwatches.
Apart from this app, Fitbit’s PurePulse technology, which tracks heart rate to monitor tiny blood volume fluctuations with the aid of photoplethysmography, remains noteworthy.
Further, the company recently introduced PurePulse 2.0 that is based on multi-path heart rate sensor and improved algorithm.
Fitness Tracker & Watch Portfolio Strength
Fitbit’s strength across its fitness tracker and smart watch portfolio remains akey catalyst. Consequently, the company continues to expand its wearables portfolio, which holds promisein the near term.
The company’s recently unveiled Fitbit Sense remains a major positive. This smartwatch smartwatch is equipped with stress management and other features along with the abovementioned ECG app.
Further, it features an electrodermal activity sensor. When users put their palms over the watch face, the sensor measures electrical changes in sweat levels, thereby indicating their stress level.
In addition to the Sense watch, the company has introduced revamped versions of its Versa — Fitbit Versa 3 and Fitbit Inspire 2.
Further, the company’s new versions of cheaper trackers including the Fitbit HR, capable of tracking heart rate, and Ace 2, which can track activity in children remain noteworthy.
Currently, Fitbit carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Competitive Scenario
Fitness trackers and wearables are steadily turning mainstream in the healthcare industry as they have become the most convenient options to monitor personal health with accuracy, track fitness and perform the post-operative care of patients.
Fitbit, backed by its technology driven apps, features and expanding portfolio of fitness trackers and smartwatches, is making every effort to capitalize on the prospects.
However, given the upbeat scenario, companies like Amazon AMZN, Apple AAPL and Alphabet’s GOOGL Google are also leaving no stone unturned to bolster their presence in the booming wearables market.
Amazon recently forayed into the fitness tracker market with the launch of Amazon Halo Band — an all-day wear water-resistant fitness band.
Apple, meanwhile, is riding on its expanding Watch family, which is aiding its leading position in the wearable space.
Google is making concerted efforts to bolster presence in this market. The growing momentum of its Wear OS remains a tailwind. Further, the search giant has made a definitive agreement to acquire Fitbit, which is subject to approval and other customary conditions.
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