3 Stocks to Watch Amid the Continuing Virtual Reality Boom – Zacks.com

Virtual reality (VR) has been gaining popularity over the years as it offers an immersive experience wherein users can effectively envision the environment that they perhaps want to visit in real life or finalize the design of a product that they are working on. Notably, VR has been trending in the gaming industry for a while as gamers are able to interact more effectively with the video game that they are playing. In fact, players can virtually touch and interact with objects created within the simulation and use the motion control for movement, thereby experiencing an alternative to actually being part of that particular games world.

Nonetheless, the application of VR has been diversifying and has found considerable usage across different industries. Notably, the automotive industry is making use of VR to conceptualize and finalize the design of a vehicle before building a prototype. This allows manufacturers to save both time and money as they dont have to build multiple prototypes of a vehicle since the simulated 3D environment allows designers and engineers to iron out any errors from the design. Moreover, companies are showcasing their vehicles to customers with the help of VR, allowing them to interact fully with a vehicle per their requirements and customizations.

Meanwhile, the healthcare industry is also making use of VR to train medical practitioners by creating virtual models of the human body and allowing them to study minute details of areas within the human body that are otherwise difficult to reach. Moreover, VR helps patients in reducing their pain as it can distract them by creating a calming environment or tackle anxiety by creating scenarios that elicit difficulties and allow therapy to deal with them.

Moreover, the tourism industry is also making use of VR to boost its operations. Interestingly, VR allows potential tourists to get a taste of what the place is actually like before they visit it in person. Markedly, the COVID-19 pandemic last year helped in accelerating the demand for VR in tourism as an alternative to physical travel as people had to cancel their travel plans to avoid risking the spread of the virus. In fact, a report by analytics company GlobalData stated that the longer the pandemic impacts travel plans, the higher the chances that both consumers and organizations might adopt VR on a more permanent basis.

Meanwhile, the pandemic also led to increasing use of VR in the workplace as it allows for more efficient collaboration among employees while working remotely. Moreover, VR is becoming an effective way of training employees and acquire new skills without physical interaction or presence in the workplace.

Reflective of these positive developments that the VR experience is leading to in so many industries, the adoption of VR seems ready to increase in the future. Notably, a report by Grand View Research stated that the global VR market is estimated to witness a CAGR of 18% from 2021 to 2028.

The adoption of VR across various segments seems poised to grow going forward as it offers users the convenience of a simulated and immersive experience that can increase efficiency and deliver better results and services. Hence, this seems like an opportune moment to keep an eye on companies that stand to benefit from this continued uptick in demand for VR. Notably, we have selected three such stocks that carry a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of todays Zacks #1 Rank stocks here.

Alphabet Inc.s (GOOGL Quick QuoteGOOGL - Free Report) Google has multiple offerings in the VR space including its Daydream platform and Daydream View headset, Google Earth VR and also Google Cardboard. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings increased 27.3% over the past 60 days. The companys expected earnings growth rate for the current year is nearly 50%.

Facebook, Inc. (FB Quick QuoteFB - Free Report) offers Facebook Horizon which is a VR gaming world and owns a VR headset company named Oculus. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 15.7% over the past 60 days. The companys expected earnings growth rate for the current year is 29.3%.

Sony Group Corporation (SONY Quick QuoteSONY - Free Report) offers its PlayStation VR which allows gamers an immersive experience while playing video games. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings increased 2.6% over the past 60 days. The companys expected earnings growth rate for the next five years is 11.6%.

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3 Stocks to Watch Amid the Continuing Virtual Reality Boom - Zacks.com