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Will Wearable Technology Be the Next Big Innovation in Health Care?

Health-care spending in the United States is hovering at around 18% of GDP, and the industry is facing pressure to quickly become more efficient. Most debates on this topic tend to focus on inefficiencies in hospitals, but there is a hidden consumer revolution that may also help cut health care costs long-term by focusing on the prevention of diseases.
Wearable technologies, namely activity trackers such as Nike's (NYSE: NKE  ) Fuelband, have started a new era of health awareness that Rob McCray, founder of the Wireless Life Sciences Alliance, has called the "engaged health consumer." More data and actionable information about a consumer's health will lead that person to make healthier life choices and prevent diseases.
Companies in every business sector, from technology to health care, are emerging in this space, but apparel companies such as Nike and Under Armour (NYSE: UA  )  are also making significant strides in consumer-focused wearable technology. In the following video, analysts Rex Moore and Max Macaluso discuss these advances and why investors need to watch for first movers in this space.

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