The augmented reality (AR) and virtual reality (VR) market is experiencing rapid growth, projected to increase by $364.55 billion between 2022 and 2027, at a compounded annual growth rate (CAGR) of 52.37%. Technavio reports that innovations in areas such as gesture tracking, mixed reality (MR), extended reality (XR) and others are expected to be a boon for these augmented reality stocks, and it’s one of the reasons that I’m bullish on this industry.
There are some AR stocks that I feel that could rocket overnight, thanks in part to their low valuations and their immense potential for growth in the rapidly expanding AR/VR market. These companies are at the forefront of innovation, developing cutting-edge technologies and solutions that could change society in unexpected ways.
So here are three AR stocks that I feel could have a realistic chance of minting new millionaires overnight. Do not miss out on this opportunity to grow your portfolio.
Top Augmented Reality Stocks: Vuzix (VUZI)
Vuzix (NASDAQ:VUZI) specializes in developing smart glasses and AR headsets for both consumer and enterprise markets. Their lightweight, wearable devices are designed to enhance productivity and provide hands-free solutions.
VUZI smart glasses leverage AI to provide advanced functionalities such as real-time data processing and analysis. The glasses support medical applications, including surgical protocols and complex procedures like brain surgery. Also users can engage in field service scenarios and learn inventory management techniques using the glasses, among other uses.
With a market capitalization of $85.44 million and a low enterprise value of $59.18 million, VUZI’s valuation suggests potential for substantial appreciation. Analysts’ consensus rating of “Buy” and an average price target of $3, representing 127.27% upside, suggest significant near-term appreciation.
These factors work to make VUZI an AR stock that could mint new millionaires with a large enough investment. The risks of VUZI, however, should also be taken into account.
Kopin (KOPN)
Kopin (NASDAQ:KOPN) manufactures display technologies and optical solutions for AR and VR headsets. They supply components to various companies in the industry.
One of Kopin’s notable contributions to the AR and VR industry is its advanced display technologies. These technologies include high-resolution microdisplays, which are crucial components in creating vivid and lifelike images within AR and VR headsets.
KOPN reported a quarterly loss of 6 cents per share, missing the analyst consensus estimate losses of 2 cents. However, this loss is an improvement from the 7 cents per share loss a year ago. Despite the earnings miss, the company has beaten consensus EPS estimates two times over the last four quarters.
In terms of revenue, Kopin generated $8.58 million for the quarter, falling short of the analyst consensus estimate by 6.61%. This is lower than the revenue of $12.18 million from the same period last year.
Still, with a market cap of just around $90 million and a tiny price-to-sales ratio of 2.3 times sales, it could be one of those augmented reality stocks that could offer life-changing results for investors if the conditions are favorable.
WiMi Hologram Cloud (WIMI)
WiMi Hologram Cloud (NASDAQ:WIMI) provides holographic augmented reality solutions for various industries, including advertising, entertainment and education.
As Investorplace reported previously, WIMI benefitted from heightened investor interest in February of last year. The surge in trading activity is evident by over 23 million shares of WIMI stock changing hands. That is a notable increase compared to its average daily volume of about 608,000 shares. With a float of approximately 107 million units, this surge indicates that WIMI could be one of those stocks that have captivated investors’ attention.
Over the last 12 months, WIMI recorded revenue of $82.56 million. With $106.84 million in cash and cash equivalents and only $6.89 million in debt, WIMI maintains a strong net cash position of $99.94 million, or $1.19 per share.
WIMI is also cash flow positive, with a free cash flow of $2 million over the same time period. Some of the risks of the company are significantly reduced.
WIMI retains the same upside potential as the other AR stocks on this list thanks to its valuation. It could therefore be one of those companies for investors to consider. Do yourself a favor and grab these augmented reality stocks.
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On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
