Factors such as health consciousness and consumer demand for luxury goods have made wearables an attractive global market. In terms of application, consumer electronics and healthcare have been the biggest contributors to the wearable technology market. With a robust growth outlook through the decade, wearables stocks are an attractive investment option.

To put things into perspective, the global wearables technology market was valued at $61.3 billion in 2022. The market is expected to grow at a CAGR of 14.6% through 2030. This presents a big opportunity, with wristwear, eyewear, and headwear likely the most significant contributors to growth.

Besides the increasing health consciousness after the pandemic, its augmented and virtual reality serve as growth catalysts. As the potential market size swells, competition has intensified. However, companies with significant investments in innovation are poised to grow.

Let’s discuss three wearables stocks that look attractive and poised to benefit from secular industry tailwinds.

Apple (AAPL)

Apple (NASDAQ:AAPL) would be my top pick among wearables stocks to buy. At a forward price-earnings ratio of 25.6, the innovator looks attractive and is poised to rally, with growth and diversification being catalysts.

For Q1 2023, Apple reported revenue of $13.5 billion from the wearables, home, and accessories segment. It’s likely that growth will accelerate in this segment in the coming years. It’s worth noting that as of Q3 2022, Apple had a leading market share of 29% in the wearable device segment.

On a year-on-year basis, the company’s market share has increased marginally. With Apple having a cash glut, there is ample flexibility to invest in product development and innovation. This will help the company maintain its leading market share.

There are speculations that Apple will be launching AR and VR headsets relatively soon. If this holds true, it will serve as another growth catalyst. Therefore, AAPL stock is the best bet among wearables stocks for investors betting on innovation from the sector.

Alphabet (GOOG, GOOGL)

Alphabet (NASDAQ:GOOG, GOOGL) stock is another name to consider among wearables stocks. Technology stocks have corrected in the last 12 months, and GOOGL stock trades at a forward price-earnings ratio of 18.5. The downside seems capped from current levels.

Coming to wearable devices or headsets, Alphabet has taken the acquisition route. In January 2021, Alphabet acquired Fitbit for a consideration of $2.1 billion. As of 2021, Fitbit had 111 million registered users, and for the same year, the company sold 10.6 million devices.

In May 2022, Alphabet acquired MicroLED start-up Raximum. The latter is focused on AR and VR applications. The acquisition, therefore, gives Alphabet inroads in the headset devices segment.

It’s worth mentioning that Alphabet’s core business is a cash flow machine. This gives the company ample flexibility to continue expansion in the wearables segment through acquisitions. At current valuations, GOOGL stock is worth accumulating for long-term value creation.

Garmin (GRMN)

Garmin (NYSE:GRMN) is another stock that’s attractive from a valuation perspective. GRMN stock trades at a forward price-earnings ratio of 19.7 and offers a healthy dividend yield of 3.0%. It’s worth noting that the stock has remained sideways in the last six months. A breakout on the upside is impending after consolidation.

In the fitness segment, Garmin reported revenue of $280 million for Q3 2022. I believe that there are two key catalysts for growth in this segment. First, the launch of new products will boost growth. In Q3 2022, the company launched BPM smart blood pressure monitor.

Furthermore, Asia is likely to be a big market for the company. Within Asia, Garmin expects India to be among the top three markets in the next five years. India, with a population of 1.3 billion and a swelling middle class, provides ample growth opportunities.

I must mention that Garmin reported research and development expenses of $209 million for Q3. With significant investment in innovation, the company is positioned to deliver value.

On the date of publication, Faisal Humayun did not hold (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.