Wearable Technology Remains An Investment With Huge Global Growth Potential
Sean Kennett | December 11, 2017
It’s no secret wearable technology industry continues to prove a tremendous investment opportunity in the stock market. Wearable technology companies continue to see increased revenue/profitability and stock earnings-per-share (EPS). Overall, wearable technology is expected to grow to a $9.4 billion industry by 2022 and a CAGR of 14.9 percent from 2017 to 2022
. Last year, more than 102 million wearable technology devices were shipped, and that number has gone up 25 percent year over year
As the global interest in wearable technology grows and consumers around the world become more enthusiastic about wearables, investors have reason to be interested in companies focusing on the growing global market. With a market volume of $940 million in 2017
, most of that revenue from wearable technology is still generated in the United States. However, forward thinking companies are taking note of the impressive demand for wearable technology around the globe, especially across Europe and Asia.
Demand for wearable technology in Western Europe increased by 22 percent this year just from January to June 2017. In terms of sales value, the market grew by 33 percent. In Asia, wearable technology saw an increase of 21 percent in unit sales and 26 percent in sales value. The strongest demand was observed in Emerging Asia (up 16 percent), Central and Eastern Europe (up 11 percent), and Latin America (up 11 percent)
And this global market demand is only just beginning for wearable technology – which opens a huge investment opportunity. Here are a few high-valued stocks with potential growth, focused on the global wearable technology market…
High-Valued Stocks in The Wearable Technology Global Market
builds tangible, innovative wearable technology devices out of ideas that exist only in the minds of its clients – such as the Alpinestars Tech-Air airbag system jacket, which has been recognized with a Top Innovation award in the wearable technology category
at the Consumer Electronics Show Asia in Shanghai, China.
Cemtrex’s strategy over the last several years has been to position its business in high growth markets while seeking out strategic acquisitions along the way to deliver maximum value for its stockholders and investors
. This strategy was highly effective over the last five years, with CETX stock value per share increasing over 1,900 percent. And according to investing.com’s fundamental analysis of Cemtrex with the Nasdaq Dozen process, the company shows consistent growth both in revenue and profitability
Cemtrex is continuing to invest in the wearable technology sector by developing their own proprietary IoT and wearable devices, and with the new hire of their IoT Business Development Manager, Joeseph Novelli. This latest Cemtrex news demonstrates their dedication to pursue the development and commercialization of proprietary and collaborative Internet of Things (“IoT”) and wearable technology products. With $2 million in sales from wearable technology last two years, that number expected to double over next two years.
Cemtrex also has a foothold in the international wearable technologies industry through its German manufacturing operations.
After a surprising crash in share price for FitBit, investors find it encouraging that there are signs of an improvement in the business
. During Q2, the company reported revenues of $587 million, up from $400 million in the same period a year ago, and the earnings came to 12 cents a share. Analysts were forecasting revenues of $578 million and earnings of 11 cents a share. Partly responsible for this growth, FitBit, which had previously focused all efforts on fitness related devices, is entering new wearable technology spaces, starting with a new watch line.
Recently, FitBit created a line of watches, referred to as Ionic, with a special edition sold by Adidas, the German sportswear group – boosting Fitbit’s profile in Europe and Asia
. Currently, the United States is still the biggest market for Fitbit wearables, followed by Europe, the Middle East, Africa, and the Pac-Rim. Because of that, the overseas markets present the most potential growth for FitBit
To continue to scale the business globally, FitBit is leveraging a new engineering center in Romania gained through the recent acquisition of assets of Vector Watch, and a new regional headquarters in Dublin – enabling the company to efficiently serve the global business and further expand its presence in EMEA
Nokia, who has struggled recently with multi-year lows, may start to see an uptick in value in part due to their entrance into the wearable technology market. First, Nokia acquired Withings, a French connect health device company, and now they’ve signed a partnership with Chinese company, Xiaomi. This newest partnership will allow Nokia and Xiaomi to cross-license patents, and potentially work together on innovative wearable technology products in the future.
According to a fresh research report from Strategy Analytics
, Xiaomi is now the world’s largest wearable technology vendor, beating competition from Fitbit and Apple as well. While Xiaomi sells devices in 30 countries, it has yet to sell its smartphones officially in the United States, the United Kingdom, or Europe.
Nokia expects to realize licensing income
from Xiaomi from the start of fiscal 4Q17. Analysts will be closely watching to see if Nokia’s acquisitions and licensing agreement will be successful and positively impact revenues over the next few quarters. Through the last quarter, net profits are still negative but management sees operating profits coming in at 8 percent to 10 percent for the year, and year-to-date the stock is up 35 percent
As companies move to meet the growing demand for wearable technology around the world, those that focus growth in EMEA as well as the US may begin to see more potential revenue and growth than those companies focused only on US sales. With the global market for wearable technology increasing, are you investing in more wearable technology related stocks?
Download Cemtrex's Investor Presentation
Download Your Copy