3 Augmented Reality Stocks to Buy Now

When investors search for compelling investments, the augmented reality (AR) space might not be the first idea that comes to mind as it’s often overshadowed by a similar technology, virtual reality (VR). AR refers to the addition of digital elements to the real world while VR is the complete immersion in a virtual world. That being said, AR is making waves. The technology has massive potential based on the fact that it can blend effortlessly into the real world, with AR expected to be used in social media, automotive devices and virtual conference calls. According to IDC, AR device shipments will increase by more than 30 times between 2018 and 2022, outpacing the growth of the VR market. With many companies not wanting to lag behind this trend, analysts say a few stocks present a unique opportunity. Bearing this in mind, let’s take a closer look at 3 AR stocks to buy as the space heats up. Alphabet Inc. (GOOGL) Google wants to change the way we search for information, again. This time it’s with the help of AR. At its I/O keynote in May, the company announced that it would be adding 3D augmented reality models to its search results. This new feature will allow users to view and interact with 3D objects appearing in a search and place them directly into their own space, giving users a sense of scale and detail. Google said this feature could transform the way medical students learn about the human anatomy with 3D models of muscles, or even the way consumers shop as they can see how an item would look in the real world. It doesn’t hurt that NASA, New Balance, Samsung, Target, Visible Body, Volvo, Wayfair and others want to use this technology to add support for their 3D models.In February, Google also started testing AR turn-by-turn directions for Google Maps. This release is part of a larger effort to expand its AR product offerings that included its Android ARCore platform in 2017. It also launched a Playground system that lets users put AR stickers called Playmoji, or characters from The Avengers and Detective Pikachu, into their camera feed. Not to mention its Google Glass is being tested for use in medical and manufacturing applications. Morgan Stanley analyst Brian Nowak argues that GOOGL could stand to increase its full year 2020 revenue by as much as $5 billion thanks product enhancements, citing the expected strength of Google Maps as a key driver. As a result, the five-star analyst reiterated his Buy rating and $1,450 price target on August 27. He believes shares could surge 24% over the next twelve months. Wall Street appears to mirror Nowak’s sentiment. GOOGL has a ‘Strong Buy’ analyst consensus and a $1,390 average price target, suggesting 19% upside potential. Boeing Company (BA) AR has also made its way onto airplanes.Boeing has started using the technology to help it solve the most complicated issues it faces in the factory. Along with its partner, Upskill, Boeing uses AR...

That being said, AR is making waves. The technology has massive potential based on the fact that it can blend effortlessly into the real world, with AR expected to be used in social media, automotive devices and virtual conference calls. According to IDC, AR device shipments will increase by more than 30 times between 2018 and 2022, outpacing the growth of the VR market.

With many companies not wanting to lag behind this trend, analysts say a few stocks present a unique opportunity.

Bearing this in mind, let’s take a closer look at 3 AR stocks to buy as the space heats up.

<h4 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Alphabet Inc. (GOOGL)” data-reactid=”15″>Alphabet Inc. (GOOGL)

Google wants to change the way we search for information, again. This time it’s with the help of AR.

At its I/O keynote in May, the company announced that it would be adding 3D augmented reality models to its search results. This new feature will allow users to view and interact with 3D objects appearing in a search and place them directly into their own space, giving users a sense of scale and detail.

Google said this feature could transform the way medical students learn about the human anatomy with 3D models of muscles, or even the way consumers shop as they can see how an item would look in the real world. It doesn’t hurt that NASA, New Balance, Samsung, Target, Visible Body, Volvo, Wayfair and others want to use this technology to add support for their 3D models.

In February, Google also started testing AR turn-by-turn directions for Google Maps.

This release is part of a larger effort to expand its AR product offerings that included its Android ARCore platform in 2017. It also launched a Playground system that lets users put AR stickers called Playmoji, or characters from The Avengers and Detective Pikachu, into their camera feed. Not to mention its Google Glass is being tested for use in medical and manufacturing applications.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Morgan Stanley analyst Brian Nowak argues that GOOGL could stand to increase its full year 2020 revenue by as much as $5 billion thanks product enhancements, citing the expected strength of Google Maps as a key driver. As a result, the five-star analyst reiterated his Buy rating and $1,450 price target on August 27. He believes shares could surge 24% over the next twelve months.” data-reactid=”29″>Morgan Stanley analyst Brian Nowak argues that GOOGL could stand to increase its full year 2020 revenue by as much as $5 billion thanks product enhancements, citing the expected strength of Google Maps as a key driver. As a result, the five-star analyst reiterated his Buy rating and $1,450 price target on August 27. He believes shares could surge 24% over the next twelve months.

Wall Street appears to mirror Nowak’s sentiment. GOOGL has a ‘Strong Buy’ analyst consensus and a $1,390 average price target, suggesting 19% upside potential.

<h4 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Boeing Company (BA)  ” data-reactid=”43″>Boeing Company (BA)

AR has also made its way onto airplanes.

Boeing has started using the technology to help it solve the most complicated issues it faces in the factory. Along with its partner, Upskill, Boeing uses AR glasses to guide technicians as they wire planes.

Traditional methods required employees to manually assure that wires were correctly concentrated, an exhausting and time consuming process. AR glasses provide technicians with the same information right before their eyes, which makes wire construction faster. Voice commands are able to be sent through the glasses and partners can join in on the video stream.

This investment is already paying off, with Boeing reporting that they were able to reduce production time by 25% and lower error rates to almost zero.

BA is also working to develop AR solutions to improve maintenance training.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="All of this supported five-star analyst Cai Rumohr’s conclusion that BA can fly to new heights. As a result, the Cowen & Co. analyst reiterated his Buy recommendation as well as his $460 price target on August 22. Rumohr believes share prices could soar as much as 30% in the next twelve months.” data-reactid=”49″>All of this supported five-star analyst Cai Rumohr’s conclusion that BA can fly to new heights. As a result, the Cowen & Co. analyst reiterated his Buy recommendation as well as his $460 price target on August 22. Rumohr believes share prices could soar as much as 30% in the next twelve months.

In general, the Street takes a cautiously optimistic stance on BA. It has a ‘Moderate Buy’ analyst consensus and a $425 average price target, indicating 20% upside.

<h4 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Amazon.com, Inc. (AMZN)” data-reactid=”59″>Amazon.com, Inc. (AMZN)

The eCommerce giant is also betting on AR to drive substantial growth.

The company relies on efficient package delivery in its retail business, with AMZN always looking for ways to make this process more effective. According to its patent filed on August 6, Amazon is hoping to accomplish this using AR.

The patent outlines how its technology can alert a delivery agent about the best times to make a delivery, the best routes to take and even the best places for parking, all of which is conveyed via the agent’s AR headset. Computer servers would keep track of agents’ locations, where they are supposed to go as well as match up those routes against a database compiled from previous deliveries. The agents can then add new tips or details they come across to the database for the next delivery.

This recent development comes after Amazon launched its AR View feature that lets customers visualize products in their own homes back in 2017.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Jeffries analyst Brent Thill stated that he believes AMZN’s improved features and diverse product offerings will plant the seeds for future growth. On August 14, the five-star analyst reiterated his Buy rating and $2,300 average price target, implying 31% upside potential.” data-reactid=”64″>Jeffries analyst Brent Thill stated that he believes AMZN’s improved features and diverse product offerings will plant the seeds for future growth. On August 14, the five-star analyst reiterated his Buy rating and $2,300 average price target, implying 31% upside potential.

Wall Street is on the same page. AMZN has a ‘Strong Buy’ analyst consensus and a $2,286 average price target, indicating 30% upside potential.