The “body technology” or “wearable technology” sector is growing and offers huge potential for the future. Thus, Wall Street pays attention to many companies pushing the boundaries of change to bring exciting new products to market.
Most of the apps and products available include mobile devices and gadgets that can be worn on the body, such as smartwatches, medical wearables, smart wearables with sensors, and head-mounted displays.
According to Deloitte metrics:
“320 million consumer health and wellness wearables will be shipped worldwide by 2022.”
This number is estimated to reach 440 million units by 2024.
We will probably see more smart clothing or the integration of electronics into traditional fabrics in the future. A recent study predicts that the global wearable technology market will exceed $ 380 billion by 2028. This increase would mean a compound annual growth rate (CAGR) of 18.5% from 2022 to 2028.
Since wearables have become a major trend, many investors now keep companies engaged in this cutting-edge sector on their radar screens.
Examples of Body + Tech actions
InvestingPro provides access to “body + tech” stocks that can attract long -term investors. Top large cap stocks include semiconductor heavyweight Qualcomm (NASDAQ: and Skyworks Solutions (NASDAQ :); continuous glucose meter (CGM) maker Dexcom (NASDAQ :); global positioning system (GPS:). ) Garmin (NYSE 🙂 devices; and Qorvo (NASDAQ 🙂 radio frequency (RF) solution provider.
Tech giants, such as Apple (NASDAQ 🙂 and Alphabet (NASDAQ :), Google’s main company, are also having an early start with their wearables, ranging from fitness trackers to smartwatches.
Among the fastest growing wearable technology companies are wireless power technology developer Energous (NASDAQ :); low-power system-on-chip (SoC) provider Ambarella (NASDAQ :); Qualcomm; Dexcom; Universal Display (NASDAQ :)), a group that specializes in organic light-emitting diode (OLED) technologies; and iRhythm Technologies (NASDAQ :), a company that specializes in digital healthcare.
At the same time, some stocks are currently trading at relatively low price-to-book (P/B) ratios. Microacoustic solutions and precision device provider Knowles (NYSE :), haptic technology specialist Immersion (NASDAQ :), Energous, Singapore-based engineering group Flex (NASDAQ :), GoPro (NASDAQ :), Qorvo and micro-display vendor Kopin (NASDAQ 🙂 are among those names.
Looking at the stocks with the lowest value associated with fair value, as reported by InvestingPro, we also see Skyworks Solutions, Qorvo, Swiss-based IT name Logitech (SIX 🙂 International (NASDAQ :), which focuses on hardware, storage and peripherals, Garmin and Kopin.
In wearable tech stocks, high -growth dividend stocks are typically more expensive. Therefore, some names to watch out for are Garmin, Qualcomm, Skyworks Solutions, Logitech International, Universal Display, and electronics manufacturing service (EMS) provider Jabil Circuit (NYSE :).
Finally, investors who listen to analysts ’price targets may be interested to know that some wearable tech stocks could see substantial increases from current price levels. Examples include Immersion, Energous, Dexcom, GoPro and Logitech International.
Of course, deciding which “body + tech” stocks best meet individual portfolio objectives requires further consideration. Retail investors may also consider investing in an exchange-traded fund (ETF) that offers greater exposure to the wearable technology sector.
Examples of ETFs that offer exposure to stocks in the “Body + Tech” sector.
Different ETFs provide access to the stocks on our lists because companies are diverse and cover many technologies. Here are some examples:
- Invesco QQQ Trust (NASDAQ :), which has Alphabet, Apple, Dexcom, Qualcomm and Skyworks Solutions in its portfolio-down 23% year-to-date (YTD);
- Invesco S&P MidCap 400 Revenue ETF (NYSE :), which owns Jabil-down 7.1% year-to-date;
- iShares Micro-Cap ETF (NYSE :), which owns Energous-down 18.5% YTD;
- ETF Procure Space (NASDAQ :), which owns Garmin – down 18.4% YTD;
- ProShares Metaverse ETF (NYSE :, which owns Immersion – down 17% since its inception in March.
These returns remind us that 2022 will be a difficult year for technology and growth companies as a whole. However, those with strong product offerings, revenue and balance are likely to create shareholder value in the coming quarters.
Today’s article features thematic funding that provides exposure to some big names in the wearable tech space.
Global X Internet Of Things ETF
- Current price: $ 28.83
- 52 week range: $ 26.65 – $ 40.46
- Dividend yield: 0.44%
- Cost ratio: 0.68% per year
The Global X Internet of Things ETF (NASDAQ 🙂 offers access to companies focused on the Internet of Things (IoT), such as clothing, sensors, network infrastructure or connected automotive technology.
SNSR, which began trading in September 2016, tracks the Global IoT Thematic Index. More than half of the companies are from the United States. It is followed by companies from Switzerland, Taiwan, France and Austria.
In terms of sector allocations, we see the dominance of information technology (63.1%) and industrial (23.6%), followed by healthcare (6.8%), consumer decision making (6.3%) and consumer services. communication (0.2%).
The ETF currently holds 47 stocks, of which the top 10 names are worth nearly half of the $ 327.22 million in net assets. These include Swiss semiconductor company STMicroelectronics (NYSE :), Taiwanese embedded board maker Advantech (TW :), Dexcom, Garmin, sensor supplier Sensata Technologies (NYSE :)), Qualcomm and Ambarella.
Like many funds investing in high-growth tech and stocks, SNSR hit an all-time high in November 2021. But since then, we’ve seen a different story on Wall Street.
The ETF has lost 26.3% since January and 12.6% over the past 12 months. It also hit a 52-week low on May 12. The following P/E and P/B ratios came in at 17.39x and 2.60x.
Against the backdrop of the rapid digital transition the world is witnessing, the global IoT technology market could witness a CAGR of more than 6.5% during 2021-2027. Long-term investors whose portfolios allow short-term volatility may consider doing more research on SNSR.