In Part 2 of our 3-part series (click here for Part 1), we will look at five more stocks with catalysts in place and a cheap enough valuation to double during 2017. In this edition, we look at Fitbit Inc (NYSE:FIT), XPO Logistics Inc (NYSE:XPO), Skechers USA Inc (NYSE:SKX), Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and GNC Holdings Inc (NYSE:GNC).
While there are several reasons why each stock could double in 2017, there are also a handful of concerns that could prevent the appreciation of each security. Those risks are greater for some than others.
That’s why when explaining why each of these five stocks have the potential to double in 2017, we also assign a number between 1-10 to reflect the likelihood that it actually happens. Regardless, the potential for big time appreciation is present. It’s just a matter of whether these companies can get buttoned up in their areas of need.
Stocks to double: FIT stock
The reason is very simple: Wall Street does not like FIT stock, but consumers love Fitbit products. We expect Fitbit to launch a new smart watch in Q1, and demand will exceed that of the Blaze.
Wall Street analysts won’t agree, but proof is in the fact Fitbit maintained No. 1 market share in the wearables market without launching any significant new products; the smart wearables market completely crashed without any new products from Fitbit; and despite not having any special new products, Fitbit was still the big holiday winner.
You combine those three things with the fact that EPS expectations for 2017 have fallen from $1.41 back in September to just $0.65 now, and the stage is set for big FIT stock gains. Therefore, we assign a “7” to the prospects of 100% gains for FIT stock in 2017, accounting for A) Fitbit not launching a new smartwatch in Q1 or B) Fitbit failing to make a significant upgrade in technology.