4 Prominent Tech Stocks Shaping the Health Wearables Market

Chicago, IL – March 26, 2025 – Zacks.com has unveiled the latest selection of stocks highlighted in the Analyst Blog. Every day, Zacks Equity Research analysts provide insights into the latest developments impacting stocks and the broader financial markets. Featured stocks include: Apple (AAPL), Alphabet (GOOGL), Garmin (GRMN), and Meta (META).

Here are some highlights from Tuesday’s Analyst Blog:

Transformations in Health & Fitness Wearables Market

The health and fitness wearables market is evolving quickly, with major tech companies investing significantly to enhance device accuracy and broaden the array of health metrics they track. Industry leaders such as Apple, Alphabet, Garmin, and Meta are vying for a more prominent share of this lucrative market, which is anticipated to expand from $103.2 billion in 2025 to $324.7 billion by 2032, reflecting a compound annual growth rate (CAGR) of 17.8%, according to a report from Fortune Business Insights.

New technologies are emerging, including smart fabrics for monitoring muscle movement and posture, sweat sensors for tracking electrolytes and hydration, and augmented, virtual, and mixed reality wearables used for medical training and mental health therapy. In 2025, these advancements are shifting the industry landscape.

Additionally, wearable developers are harnessing AI to offer tailored workout analyses, training recommendations, and injury predictions. AI-enhanced wearables help in preventive healthcare by identifying diseases and monitoring mental health through observations of stress and sleep. The integration of AI allows for real-time assessments of various health metrics, including sleep patterns, heart rate, blood glucose, metabolism, skin temperature, oxygen saturation, and ECG readings.

Despite innovations, health and fitness wearables encounter significant challenges, primarily around accuracy and battery life, especially for continuous, all-day use.

Manufacturers Enhance Battery Life and Measurement Accuracy

To address these concerns, manufacturers are improving sensor and software accuracy for tracking vital signs. AI algorithms are being optimized to minimize data inconsistencies, distinguishing between actual health risks and sensor errors to deliver precise information. Furthermore, these algorithms assess historical health data to uncover long-term trends that can lead to early disease risk detection.

Wearable devices are becoming sleeker and more fashionable, with the development of patches and rings, while thin-film batteries are being adopted for better performance. Manufacturers are also exploring AI-driven battery optimizations alongside solar, kinetic, and body heat charging technologies, as well as utilizing energy-efficient components to prolong battery life.

Furthermore, wearable producers are reducing device latency by incorporating 5G technology and preparing for potential 6G connectivity. With increased consumer awareness of environmental issues, brands are leaning towards using recycled materials in their products.

As these technological advances unfold, enthusiasm among athletes, fitness fans, and the health sector is growing, fueling a broader acceptance of these devices. This burgeoning market presents substantial investment opportunities in leading companies within the health and fitness wearables industry.

4 Health and Fitness Wearables Stocks to Watch in 2025

Garmin is increasing its popularity by offering fitness wearables designed for specific activities, including swimming, diving, multisport tracking, and golf. The recent addition of products like the HRM 200 heart rate monitor, Instinct 3 Watch Series with continuous health monitoring capabilities, and increased battery life via solar charging illustrate Garmin’s commitment to improving health and fitness tracking.

The company also launched the Approach S44 and S50 models for golf training, in addition to the Descent G2 watch-style dive computer. Garmin has expanded accessibility by making its ECG app available in Australia and the European Union. This app, recognized as a medical device, provides heart rhythm data and detects potential atrial fibrillation (AFib).

According to the Zacks Consensus Estimate, Garmin, a Zacks rank #1 (Strong Buy) stock, anticipates fiscal 2025 earnings of $8.25, reflecting a year-over-year increase of 11.6%. See the complete list of today’s Zacks #1 Rank stocks here.

Find the latest EPS estimates and surprises on Zacks earnings Calendar.

Apple is elevating its wearables to new levels by integrating clinical-grade features. The company asserts that its AirPods Pro can function as clinical-grade hearing aids. Moreover, the Apple Watch’s atrial fibrillation detection tool received approval for clinical trials from the U.S. Food and Drug Administration (FDA) for individuals aged 22 and above.

This Zacks Rank #3 (Hold) company has also advanced its smartwatch offerings with features like ECG capabilities and an AI-driven health coaching system. Recently, the FDA approved Apple’s sleep apnea detection feature for the Watch Series 9, Series 10, and Ultra 2, enhancing their utility as reliable health-tracking devices.

The Zacks Consensus Estimate for Apple’s fiscal 2025 earnings stands at $7.26, indicating an anticipated year-over-year increase of 7.6%.

Alphabet boosted its wearables lineup by introducing the Google Pixel Watch 3 in September 2024. Earlier, the company launched Wear OS 5, specifically designed to enhance the battery life of its fitness wearables.

In 2025, Alphabet secured FDA clearance for its Loss of Pulse Detection feature, capable of identifying a lack of pulse during cardiac arrest or other emergencies and alerting emergency services automatically. Additionally, Google researchers are exploring advancements in Personal Health Large Language Models.