The increasing prevalence of stress-related disorders and the widespread adoption of wearable technologies have sparked considerable interest in harnessing smartwatches for continuous, real-time stress monitoring. This paper reviews the literature to assess the capability of wearable sensors, specifically those measuring heart rate variability (HRV), skin temperature, and respiratory rate, for early stress detection. By synthesizing current methodologies, we evaluate how these physiological signals are processed to derive key stress indicators. This paper presents a conceptual study related to the identification of stress. Also, it shows a possible method for its recognition, and discusses its use for the identification of stress based on the literature. Finally, we discuss the practical applicability of smartwatch-based stress monitoring in diverse settings, including clinical environments, workplace wellness programs, military operations, sports training, and elderly care.