When it comes to the rising virtual reality market, the fundamental attribute to consider is immersion. Unlike prior innovations in the advanced interface ecosystem, VR systems essentially put the operator into the digital environment. Yes, VR stocks to buy commands significant relevancies in the gaming sector. However, immersion is a concept that applies to many other industries.
As a result, the sector features robust potentiality. According to MarketsandMarkets, the global VR sector may reach a valuation of $15.9 billion by year’s end. By 2029, the space could be worth $38 billion, implying a compound annual growth rate (CAGR) of 19.1%. It’s also possible that this projection could be understated.
Per Grand View Research, the VR industry already reached a valuation of $59.96 billion in 2022. Experts forecast that the segment could expand at a CAGR of 27.5% by 2030. At the forecast culmination point, the industry could be worth $435.36 billion.
Either way, the smartest minds in the room believe in robust growth. With that in mind, these are the speculative but high-potential VR stocks to buy.
Immersion (IMMR)
Based in Florida, Immersion (NASDAQ:IMMR) with its subsidiaries engages in the creation, design, development and licensing of haptic technologies. This innovation allows people to use their sense of touch to engage with and experience various digital products. While not quite the most direct play among VR stocks to buy, haptic innovations represent a vital component of the virtual experience.
Stated differently, the present VR space focuses largely on the visuals. However, in order to enjoy true immersion – hence, the company name – you need other senses involved. Haptic technologies facilitates the world of touch and that can potentially shift the paradigm. While the market capitalization is really small, early investors can potentially gain big if the stars align.
Notably, covering experts believe that in fiscal 2024, Immersion’s revenue can hit $69.14 million. That’s up nearly 104% from last year’s result of $71.93 million. Financially, it’s on a solid road. During the trailing 12 months (TTM), Immersion posted net income of $44.35 million on sales of $70.69 million.
Therefore, the projections for this year could be understated if anything. That makes IMMR one of the VR stocks to buy.
Vuzix (VUZI)
Headquartered in Rochester, New York, Vuzix (NASDAQ:VUZI) is a multinational tech firm specializing in the supply of wearable VR and augmented reality (AR) display technologies. Per its public profile, the company’s head-mounted displays are marketed toward mobile and immersive AR applications, such as 3D gaming. Vuzi also offers relevancies in the fields of manufacturing training and military tactical equipment.
With so many applications – both for personal consumption and for critical commercial and defense needs – VUZI deserves to be on your radar of VR stocks to buy. True, it’s a speculative idea. For quite some time, the company has carried a market cap of less than $100 million. It’s treading the thin line between micro caps and nano caps. Still, early believers could be rewarded.
In fairness, the consensus view for fiscal 2024 isn’t particularly encouraging, with sales projected to reach $11.61 million. If so, that would imply an erosion of 4.3%. However, it’s also worth mentioning that the most optimistic target calls for $13.73 million.
It’s a risky idea but here’s some final food for thought. Shares trade at 8.54X trailing-year sales. About one year ago, this metric stood at just under 24X.
Kopin (KOPN)
Hailing from Westborough, Massachusetts, Kopin (NASDAQ:KOPN) with its subsidiaries invents, develops, manufactures and sells microdisplays, subassemblies and related components. Its main customers align with the defense, enterprise, industrial and consumer product sectors in the U.S., Asia-Pacific, Europe and other global markets. In particular, Kopin specializes in head-mounted and hand-held VR products.
With both hardware and software platforms rising in the virtual environment, KOPN could be one of the more intriguing VR stocks to buy. According to the underlying corporate profile, Kopin offers solutions for training and simulation headsets, which encompass the industrial and medical sectors. As well, the company enhances the utility of consumer AR and VR wearable headset systems.
For fiscal 2024, analysts believe that sales may reach $45.43 million. If so, that would be up 12.5%. Notably, the high-side estimate calls for $46.4 million. In addition, fiscal 2025 could see revenue jump to $49.34 million, with a blue-sky target calling for $55.5 million.
Right now, KOPN stock trades for 2.02X trailing-year revenue. During the first quarter, the multiple averaged 4.86X. Therefore, Kopin could be an intriguing idea for VR stocks to buy.
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.
