Wearable technology’s growth has been instrumental in reshaping healthcare by revolutionizing medical devices, health data management and pharmacy practices. The wearable tech sphere has effectively transformed personal health and fitness management, thrusting smart wearable stocks into the spotlight.
Moreover, the wearable market has exploded recently, with devices like smartwatches and fitness trackers leading the charge. A recent report by Statista showed a staggering 150 million wearables were shipped in the third quarter (Q3) alone. Consequently, this surge in adoption has prompted leading tech giants to intensify their efforts to get a hold of this burgeoning market. Their strategic actions are set to ignite a new major tech battle in the healthcare sector, positioning wearables as key investment prospects. With that said, here are three of the top smart wearables stocks to buy, offering robust upside potential ahead.
Smart Wearable Stocks: Apple (AAPL)
Since its launch in 2014, the Apple (NASDAQ:AAPL) Watch, coupled with the HealthKit platform, has significantly influenced health monitoring and preventative care. The watch’s ability to continuously track several different health metrics provides them with detailed insights around the clock. Moreover, its HealthKit further centralizes this data, offering a comprehensive view of one’s health and aiding in preventative care while bolstering medical research.
Furthermore, research from Statista revealed that Apple maintained its dominance in the global wearables market with a 20.2% share in Q3 2023. Previously touted for its incredible growth potential, Apple’s wearables sector witnessed a double-digit drop in sales in its most recent quarter. Despite this, Apple remains a key player in the health tech market, which should pay off over the long run.
Garmin (GRMN)
Garmin (NYSE:GRMN) shines as a leader in the smartwatch sector, offering cutting-edge products like the vivoactive 5, which transcends basic fitness tracking. These devices boast advanced health features such as heart rate monitoring, sleep analysis and stress tracking, positioning it as a major competitor to Apple. Its wearables empower users with personalized feedback pivotal in improving physical and mental well-being.
The company’s wearables offer a practical solution to the global issue of physical inactivity, a major risk factor for non-communicable diseases. Garmin’s powerful devices coupled with behavioral science offer a key catalyst for sustainable behavioral change. Also, studies conducted with the University of Copenhagen have shown that Garmin’s tracking capabilities, when combined with targeted messaging on physical activity, can lead to lasting increases in physical activity, especially in individuals with a higher BMI.
The company’s stock has surged over 40% year-over-year (YOY), complemented by a solid 2.09% forward dividend yield. Moreover, GRMN’s fourth quarter (Q4) revealed a significant rebound, with a remarkable 22% revenue spike in the fitness segment, showcasing GRMN’s adeptness in capturing and leading the dynamic expansion of the wearable technology space.
Alphabet (GOOG,GOOGL)
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), stepping beyond its digital empire, forayed into the health and fitness realm by acquiring Fitbit in 2019. That strategic move marked Google’s notable entry into wearable technology. The company’s foray into wearable tech is epitomized by the Google Pixel Watch 2, which marries Google’s AI prowess with Fitbit’s renowned health-tracking capabilities. This fusion heralds a new wave of tailored health management solutions.
Alphabet’s venture into health technology didn’t stop there. Verily, emerging from its innovative X moonshot factory, exemplifies the move towards proactive health solutions. With smart contact lenses, Verily embodies Alphabet’s shift from reactive healthcare to proactive wellness, utilizing cutting-edge technology for better health management.
Furthermore, Alphabet leverages its AI expertise, notably through Google AI and DeepMind’s advancements, to revolutionize the smart wearables market. These developments are building on health tracking precision while underscoring Alphabet’s commitment to responsible innovation.
On the date of publication, Muslim Farooque did not hold (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.