While the broader wearable technologies space has attracted legions of everyday consumers, smartwatch stocks deserve to be on your radar for one very simple reason: the massive total addressable market for innovations classified under wearable tech 2.0.
According to Grand View Research, the global wearable tech market reached a valuation of $61.3 billion last year. Further, experts project that by 2030, the sector will hit revenue of $186.14 billion. If so, this tally would represent a compound annual growth rate (CAGR) of 14.6%. That bodes well for wearable tech stocks. But that might be an underestimate.
If Mordor Intelligence’s report is to be believed, by 2028, this consumer innovation segment could see a valuation of over $419 billion. Of course, we won’t know until we know. However, just the prospect of such an expansive arena may entice speculators to investments targeting wearable tech 2.0.
On that note, it’s time to consider the below smartwatch stocks.
As one of the leaders in innovative solutions for the consumer market, Garmin (NYSE:GRMN) easily ranks among the top smartwatch stocks. Featuring a range of product offerings, Garmin caters to both the casual jogger and dedicated athletic professionals. Perhaps most notably, the company banks on its Fenix 7 Pro, its most advanced multi-sports watch to date.
Featuring excellent GPS and navigation tools, runners can go on long-distance trips and make their way back safely. That’s also a testament to the battery of up to 89 hours when using GPS. When on standby, battery lift can go up to 37 days. In addition, the Fenix 7 Pro offers biometric tracking along with an LED safety torch in case Murphy’s law happens to strike.
Financially, it’s hard to argue with Garmin’s robust financials. With a cash-to-debt ratio of 15.27x and excellent margins leading to consistent annual profitability, GRMN represents one of the most predictable wearable tech stocks. However, GRMN is already up about 33% so investors may want to wait a bit for a better entry.
Near the opposite end of the spectrum to Garmin is Vuzix (NASDAQ:VUZI), a multinational technology firm. Headquartered in Rochester, New York, Vuzix supplies wearable virtual reality (VR) and augmented reality (AR) display products. In addition to the obvious relevance to 3D gaming applications, the enterprise also serves in the fields of manufacturing training and military tactical operation.
Indeed, VUZI offers much more than your run-of-the-mill candidates for smartwatch stocks. Rather, through its augmented eyewear, on-the-job training protocols can be disseminated quickly and in a more productive manner. That’s because the underlying smart glasses provide visual cues to training seminars, making learning much more interactive. As well, the advancement carries strong implications for the medical field.
Undeniably, then, VUZI symbolizes one of the most exciting wearable tech stocks. Unfortunately, investors will be absorbing heavy risks, with shares down 40% since the January opener. Also, the company hasn’t posted an annual profit since 2012. Nevertheless, analysts rate shares a consensus moderate buy with a $7 price target, implying 224% upside.
Wearable Devices (WLDS)
Easily the riskiest idea on this list of investments related to wearable tech 2.0, Wearable Devices (NASDAQ:WLDS) represents a true nano-capitalization play. At the moment, the company carries a market value of only $8.3 million. As you might imagine, WLDS is a literal penny stock, trading hands at only 40 cents. While intriguing, you’ve got to be aware of the extreme volatility risks.
On the positive side, Wearable Devices legitimately offers a case (narrative-wise) as one of the most innovative smartwatch stocks. Practically speaking, one of the problems with smartwatches is that the display is incredibly small. Therefore, it’s tough to navigate through various menu items and features. That’s where Wearable’s proprietary Surface Nerve Conductance (SNC) tech comes in.
To make a long story short, the SNC translates thoughts and hand/finger motions into digital inputs. That makes modulating a smartwatch’s granular display functionality far easier. Of course, the big drawback is the underlying risk-reward profile.
Since its first public trading session, WLDS lost about 83% of equity value. No analyst will cover it, which is also concerning. Still, this is one of the most advanced wearable tech stocks you’ll find.
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On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.