Virtual Reality (VR) as a phenomenon has been gradually gaining popularity over the last few years as it offers users an immersive experience. Users can enjoy being in an artificially created 3D environment, much like the experience they would have if they were actually there and the pandemic has also helped in accelerating that trend of adoption. Notably, per a report by Mordor Intelligence, the VR market was valued at $17.25 billion in 2020 and is estimated to reach $184.66 billion by 2026, witnessing a CAGR of 48.7% during 2021-2026.

The report mentioned that the VR market stands to benefit from the trend of remote working which became the norm due to the outbreak of the COVID-19 pandemic. In fact, ARtillery Intelligence stated that the use of VR within businesses is estimated to grow from $829 million in 2018 to $4.26 billion in 2023, as quoted in a CNBC article. Moreover, the spread of the pandemic also led to an increasing adoption of VR within the healthcare industry. Notably, doctors and nurses received training via VR in order to fill in the gaps arising out of the shortage of time and resources.

Notably, the most-significant contributor to the adoption of VR has been gaming. Gamers have always felt the need to connect more with their games and VR is the most plausible way of achieving that since it offers a fully simulated environment, reflecting their favorite games. In fact, per another Mordor Intelligence report, VR in the gaming market is expected to witness a CAGR of 32.75% from 2021-2026. The report further mentioned that per a worldwide survey, 59% of respondents which included technology company executives, startup founders, investors, and consultants, stated that gaming is set to dominate the investment directed at developing the VR technology.

Meanwhile, the tourism industry is also set to receive a boost from the adoption of VR as the pandemic halted travel plans around the globe. VR stands to offer the best alternative to actually traveling to a destination as tourists can take a stroll of the place through their head-mounted displays or accessories without risking the spread of the virus. Notably, countries have already offered VR marketing efforts in order to revive their tourism industries, with Germany unveiling numerous immersive projects.

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The use of VR technology seems set to advance going forward with various sectors adopting it owing to the convenience it provides. This makes it a good time to watch out for stocks focused on virtual reality that can benefit from this trend. Notably, we have selected three such stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of todays Zacks #1 Rank stocks here.

Facebook, Inc. FB develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and in-home devices worldwide. Notably, the company has its Facebook Horizon VR platform, which allows users to create their own experience within the virtual world. Users can also immerse themselves in multiplayer games. Moreover, the company also owns Oculus, a VR headset company. Facebook currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings increased 7.5% over the past 60 days. The companys expected earnings growth rate for the current year is 9.9%.

Alphabet Inc. GOOGL provides online advertising services and operates through Google and Other Bets segments. Notably, Google has emerged as a major player in the VR space with many offerings like its mobile VR platform, namely, Daydream and its Daydream View headset. It also has another platform called Google Earth VR, which allows users to experience famous places on the earth through virtual reality. The company carries a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 0.5% over the past 60 days. The companys expected earnings growth rate for the current year is almost 20%.

Sony Corporation SNE designs, develops, produces and sells electronic equipment, instruments, and devices for the consumer, professional and industrial markets worldwide. Notably, the company offers PlayStation VR, which allows gamers to immerse themselves in virtual reality games. It currently has a Zacks Rank #3. The Zacks Consensus Estimate for its next-year earnings increased 2.7% over the past 60 days. The companys expected earnings growth rate for the next five years is 9.5%.

Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.

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3 Stocks to Watch on Increasing Adoption of Virtual Reality - Yahoo Finance