While virtual reality has long been tied to the entertainment arena, the innovation has expanded in utility, making these strong buy VR stocks exceptionally compelling. At the end of the day, it comes down to the numbers.
According to Mordor Intelligence, the VR market size is projected to reach a valuation of $67.66 billion in 2024. By 2029, experts believe that this segment could rise to $204.35 billion. If so, we’re talking about a compound annual growth rate of 24.74%.
As the research firm pointed out, VR can be used for applications that go beyond video games. Teachers can provide immersive learning experiences while companies – especially those tied to critical industries – can train their workers in a safe, pressure-free environment. With myriad relevancies available, these are the strong buy VR stocks to consider.
Meta Platforms (META)
When it comes to immersive technologies, you can’t leave out Meta Platforms (NASDAQ:META). First, the company enjoys natural synergies through its data goldmine Facebook. As for direct relevance to strong buy VR stocks to consider, Meta has invested heavily in both the hardware and software components necessary to fully participate in the metaverse.
True to the theme of this article, Wall Street analysts rate META stock as a consensus strong buy. Among 43 experts, 40 of them rate shares a buy. It’s interesting, though, that two experts rate META a hold and one a sell. Overall, the average price target lands at $530.58, with the high-side estimate reaching $609.
In fiscal 2023, the tech giant beat all its quarterly expectations for earnings per share. Its average earnings surprise came out to 9.78%. For the current fiscal year, experts are looking for EPS of $20 on revenue of $158.24 billion. These stats are well above last year’s print of $14.87 EPS on sales of $134.9 billion.
Alphabet (GOOGL)
Operating under the internet content and information subcategory, Alphabet (NASDAQ:GOOGL) offers various products and platforms across the world. Per its public profile, the enterprise operates through Google Services, Google Cloud and Other Bets segments. It enjoys the advantage of effectively owning the Internet through its Google search engine. However, it’s very much one of the strong buy VR stocks to consider.
To be clear, Alphabet is more geared toward the augmented reality side of the picture. Nevertheless, the key similarity between VR and AR is the leveraging of digitalization to improve experiences and/or productivity. Further, the global AR market itself could become an industry worth nearly $600 billion by 2030
It’s no surprise, then, that analysts rate GOOGL a consensus strong buy. Among 37 experts, 29 rate shares a buy while the rest say it’s a hold. Overall, the average price target land sat $165.28, with the high side hitting $180.
For fiscal 2024, analysts are looking for EPS of $6.81 on revenue of $342.31 billion. These are notable improvements over earnings of $5.80 a share on sales of $307.39 billion last year.
Microsoft (MSFT)
Conducting business mostly in the realm of infrastructure software, Microsoft (NASDAQ:MSFT) really needs no introduction. One of the advantages that the company levers is that its business software is practically universal. If you want to get anything done – especially if need to collaborate with others – it’s almost essential to be fluent with Microsoft’s Software-as-a-Service (SaaS) offerings.
Regarding its status as one of the strong buy VR stocks to consider, Microsoft has invested in its HoloLens mixed reality technology. What I appreciate about this innovation is that it has wide-ranging implications. In particular, companies in various critical industries can help train new employees in intensive functions. This way, learning is accelerated and if mistakes are made, employees can quickly learn from them.
Overall, 33 out of 35 analysts rate MSFT a buy. The two contrarians are one hold and one sell. Moreover, the average price target comes in at $473.77. Notably, the high-side target calls for a per-share price of $550, implying nearly 32% growth potential.
For fiscal 2024, analysts are seeking EPS of $11.65 on revenue of $244.22 billion. That’s up conspicuously from last year’s $9.81 EPS on sales of $211.91 billion.
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.
