3 Wearable Tech Stocks to Get Ahead of the Next Consumer Craze

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  • Jump on the booming trend of wearable tech stocks.
  • Apple (AAPL): Apple has long been a dominant force in wearable technologies.
  • Alphabet (GOOG, GOOGL): Alphabet is increasingly shifting its attention to consumer electronics.
  • Catapult Group (CAZGF): Catapult’s sports science solutions could be a game-changer in the pro-athletics world.
Wearable Tech Stocks - 3 Wearable Tech Stocks to Get Ahead of the Next Consumer Craze

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While consumer trends always ebb and flow, one that might stand the test of time is wearable electronic products. With our world becomingly increasingly connected, it’s more important than ever to have 24/7/365 access to information. Given this backdrop, investors ought to consider wearable tech stocks.

Primarily, the bullish narrative centers on the because-we-can motivation. When computers first entered the public domain, they were big, bulky and expensive affairs. Over time, advancements in semiconductor densities enabled engineers to fit a greater magnitude of capacities in smaller and smaller physical frameworks. Nowadays, it’s nothing to slap on a smartwatch or other smart and connected device while you’re out for a jog.

Plus, the sector enjoys a gargantuan growth. Per MarketsandMarkets, this category could reach a valuation of $265.4 billion by 2026. If so, this expansion would represent a compound annual growth rate (CAGR) of 18%. You can’t ignore growth like that. So, below are wearable tech stocks to consider.

Apple (AAPL)

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Previously, I’ve covered wearable tech stocks but I don’t always talk about consumer electronics giant Apple (NASDAQ:AAPL). That’s a crime and I’m going to address that right now. Apple really pioneered the craze regarding portable smart devices, first with the iPod than with the iPhone. It has moved onto many other products, including the iPad and, as it relates to this article, the Apple Watch.

I’m not a big fan of smartwatches – the closest thing I have is a Casio G-Shock. However, industry reviews rave about the Apple Watch. I can see why that is. Basically, you have a range of features and functionalities condensed into a portable, wearable format. If you’re constantly on the go but like to be productive outside the office, the Watch is a must-have.

Apple has seen some struggles in recent years, particularly in the realm of competitive pressures. Still, it’s performing well. Over the past four quarters, its average earnings surprise came out to 4.03%. During the trailing 12 months (TTM), Apple posted net income of $100.39 billion on sales of $381.62 billion.

For fiscal 2024, experts anticipate 15% growth in earnings per share to $6.59. Sales may rise 8.1Z% to $386.68 billion. AAPL is predictable but it’s still a go-to name among wearable tech stocks.

Alphabet (GOOG, GOOGL)

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One of the biggest enterprises in the field of Internet and digital innovations, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has increasingly shifted its attention to consumer electronics. In particular, GOOG ranks among the top wearable tech stocks to consider based on its Fitbit acquisition. That occurred back in 2021. Since then, shares have blossomed following a difficult spell in 2022.

Of course, that’s not solely based on the Fitbit acquisition. Still, the buyout expanded Alphabet’s total revenue base. Just as well, the company has been performing well, beating its bottom-line targets. In the past four quarters, Alphabet posted an average EPS of nearly $1.60. This print translated to an earnings surprise of 10.65%.

During the TTM period, the tech giant posted net income of $82.41 billion or earnings of $6.53 per share. Revenue in the cycle hit $318.15 billion. Further, the most recent quarterly sales growth rate (year-over-year) stands at 15.4%.

For fiscal 2024, experts are looking at 30.3% expansion in EPS to $7.56. On the top line, sales may rise 12.7% to hit $346.46 billion.

Catapult Group (CAZGF)

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Based in Richmond, Australia, Catapult Group (OTCMKTS:CAZGF) is not a particularly well-known candidate for wearable tech stocks. Moreover, Catapult’s equity only trades in the Australian stock market exchange. Outside of getting a foreign brokerage account, U.S. investors must go through the over-the-counter market. It’s not ideal given the lack of volume, among other challenges. Still, early investors just might benefit handsomely.

According to its public profile, Catapult is a sports science and analytics firm. Essentially, it provides professional sports teams and athletes with technologies designed to optimize athletic performance. Additionally, its solutions help avoid injury and therefore provide organizations with a better bang for the buck for development and rehabilitation. Wearable trackers help forge superior analytics. With so much money spent on pro athletes, Catapult could catch on.

Indeed, so many franchises have their hopes and dreams pinned on a select few superstars. If they go down, the season might end up in flames. That’s probably why analysts rate CAZGF stock a consensus moderate buy with a $1.50 price target. That implies almost 33% upside potential.

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.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.


Article printed from InvestorPlace Media, https://investorplace.com/2024/06/3-wearable-tech-stocks-to-get-ahead-of-the-next-consumer-craze/.

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