Fitbit Inc FIT 1.55% continues to deliver quarter after quarter of blowout earnings, and the market just doesn’t seem to care. Oppenheimer analyst Andrew Uerkwitz cares.

Uerkowitz pointed out Fitbit has delivered an average consensus earnings beat of 137 percent over the past four quarters. Yet despite the consistent earnings upside, the stock is down 54 percent in that time.

Uerkowitz believes market guidance expectations are finally appropriately set headed into Q2 earnings season, and Fitbit could be in the position to deliver data that will ease market fears about the long-term picture.

“Repeat customers, new product transaction, importance of digital health, and healthy gross margins could be areas where we get positive data points,” Uerkowitz explained in a note on Wednesday.

Once the market is reassured about the future, he believes investors will shift their focus to Fitbit’s severe undervaluation.

Uerkowitz sees…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!