When we hear of human augmentation, it’s easy to picture something out of a sci-fi movie. But actually, we interact with human augmentation devices and capabilities on a day-to-day basis without it being apparent. Devices such as smartphones and fitness trackers are examples of such devices. Human augmentation simply means tools that improve our physical, mental or cognitive capabilities through technology.
It’s one of the most interesting emerging technologies and one that’s changing how we execute activities in daily life and within industry-specific scenarios, including aerospace, defense, healthcare, manufacturing and entertainment.
The human augmentation market is anticipated to increase from $201.59 billion in 2024 to $885.93 billion by 2032, with a compound annual growth rate (CAGR) of 20.3%.
Here are some of the best human augmentation stocks to consider if you want to jump on board.
RTX (RTX)
RTX (NYSE:RTX) is one of America’s biggest aerospace and defense contractors. The Arlington, Texas-based firm provides space, air, ground, sea and undersea capabilities to government and commercial customers worldwide.
Via its three business segments — Collins Aerospace, Pratt & Whitney and Raytheon — RTX manufactures a wide range of products, including human augmentation. They are for advanced situational awareness and sensing to enhance human capabilities in various scenarios, from the battlefield to commercial aviation to space exploration.
And though RTX’s defense portfolio faces headwinds when the Middle East and Ukraine conflicts de-escalate, its strong positions in other niches, including cybersecurity, AI and human augmentation give it plenty of runway for continued growth.
In its first-quarter report, the company divulged it had $25 billion in new orders across its businesses. Also, it reported it was in “one of the strongest demand periods…with a record $202 billion backlog” in demand.
As you might expect with that backdrop, the RTX beat EPS and revenue projections for its first quarter, with its share price gaining 35% year-to-date (YTD). These advantages make RTX one of the best human augmentation stocks to buy.
Garmin (GRMN)
Garmin (NYSE:GRMN) is a human augmentation company that builds GPS navigation and wearable technology. Its main segment includes activity trackers and heart rate monitors for the automotive, aviation, marine, outdoor and fitness markets.
The company blasted through 2024’s first quarter estimates, reporting adjusted earnings of $1.42 per share and revenue of $1.38 billion. This beat FactSet analysts’ predictions of $1.01 per share and $1.25 billion in revenue. Year-on-year, Garmin’s earnings shot 39%, and sales grew 20%. Investors lapped up this news, sending shares up nearly 40% YTD.
President and CEO Cliff Pemble attributed this strong showing to a strong product portfolio and “robust demand trends.” If Garmin sustains this momentum, it will continue to attract significant investor interest and pump its stock price even more. It’s hands-down one of the best human augmentation stocks to buy now.
Microsoft (MSFT)
Microsoft’s (NASDAQ:MSFT) human augmentation efforts lean more towards everyday life applications. The main way it’s doing that is by using AI to improve the lives of differently-abled people with features like real-time speech-to-text, text-to-speech and object recognition.
At the moment, Microsoft’s flagship human augmentation product is HoloLens, an augmented reality device. HoloLens has a more advanced iteration — HoloLens2, a wearable device that enhances user input across manufacturing, engineering and construction, healthcare and education.
Obviously, Microsoft is not a pure-play human augmentation stock. But with the inevitability of the niche as the world advances towards increased integration of technology and human capabilities, it’s one of the best companies to bet on by virtue of brand recognition.
Indeed, it’s safe to say you can’t lose by investing in Microsoft. From an overwhelming Buy recommendation from Wall Street to an impressive 23% appreciation in its share price in the past year, it’s one of the best human augmentation stock picks in the market yet.
On the date of publication, Hope Mutie did not have (either directly or indirectly) any positions in the stocks mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com’s Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
