S&P 500   3,852.36
DOW   32,920.46
QQQ   296.26
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MarketBeat Week in Review – 1/23- 1/27
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How major US stock indexes fared Friday 1/27/2023
Closing prices for crude oil, gold and other commodities
S&P 500   3,852.36
DOW   32,920.46
QQQ   296.26
Why Lucid Spiked Nearly 100% In One Day
Is This The End of Capitalism? (Ad)
Ride These Railroad Stocks for Growth and Income
Is Buying an Aged Corporation a Good Idea?
The Next Big Crisis Is Here (Ad)
Visa, L3Harris rise; Intel, Eastman Chemical fall
MarketBeat Week in Review – 1/23- 1/27
The Next Big Crisis Is Here (Ad)
How major US stock indexes fared Friday 1/27/2023
Closing prices for crude oil, gold and other commodities
S&P 500   3,852.36
DOW   32,920.46
QQQ   296.26
Why Lucid Spiked Nearly 100% In One Day
Is This The End of Capitalism? (Ad)
Ride These Railroad Stocks for Growth and Income
Is Buying an Aged Corporation a Good Idea?
The Next Big Crisis Is Here (Ad)
Visa, L3Harris rise; Intel, Eastman Chemical fall
MarketBeat Week in Review – 1/23- 1/27
The Next Big Crisis Is Here (Ad)
How major US stock indexes fared Friday 1/27/2023
Closing prices for crude oil, gold and other commodities
S&P 500   3,852.36
DOW   32,920.46
QQQ   296.26
Why Lucid Spiked Nearly 100% In One Day
Is This The End of Capitalism? (Ad)
Ride These Railroad Stocks for Growth and Income
Is Buying an Aged Corporation a Good Idea?
The Next Big Crisis Is Here (Ad)
Visa, L3Harris rise; Intel, Eastman Chemical fall
MarketBeat Week in Review – 1/23- 1/27
The Next Big Crisis Is Here (Ad)
How major US stock indexes fared Friday 1/27/2023
Closing prices for crude oil, gold and other commodities

Cathie Wood Is Buying These Stocks, Should You?

Key Points

  • Cathie Wood is known for her aggressive holdings in disruptive tech companies on Wall Street.
  • Her insights into the companies she owns thus make her worth following for investors of all experience levels.
  • Here's a snapshot of Cathie's three largest holders in her Ark Innovation fund.
  • 5 stocks we like better than ARK Innovation ETF

Cathie Wood Is Buying These Stocks, Should You?

Cathie Wood is an American investor best known as the founder, CEO, and CIO of ARK Investment Management, a firm specializing in actively managed exchange-traded funds (ETFs). Wood began her career as an analyst on Wall Street and later moved to institutional investment management. She is renowned for her focus on disruptive technology, as well as her aggressive portfolio management strategies.

The firm's flagship fund, the ARK Innovation ETF (NYSEARCA: ARKK), has been one of the best-performing ETFs since its inception. The fund, however, is down 52.54 percent over the past year and up 79.10% since its inception in 2014.

So let's peel back the curtain on some of Wood's holdings.

Exact Sciences Corp

Exact Sciences Corp (NASDAQ: EXAS) is a molecular diagnostics company focused on the early detection and prevention of some of the most lethal forms of cancer. The company is best known for its Cologuard test, a non-invasive colon cancer screening test, and Oncotype DX breast cancer test. Arkk has been a major shareholder in Exact Sciences Corp since 2014 and owns around 9.99 million shares.

The company is also Ark's largest portfolio holding, making up 9.74% of its holdings. Investors might be happy to know that Exact's selected revenue figures came in above the results it posted last year. Revenue excluding COVID-19 testing increased by 28% year over year, and the company expects to reach EBITDA profitability by Q4'22 and throughout FY2023.

The company is trading at overvalued levels per the MarketBeat consensus price target. Analysts predict that the company's stock price will contract by 9.4%, partly due to its sharp share price appreciation. Other bearish factors include a short interest ratio of 6.47% and $60,000 shares being sold by company insiders last quarter.


Zoom

Zoom Video Communications (NASDAQ: ZM) is a leading provider of cloud-based video communications services. It is one of the key players in the fast-growing online video conferencing industry and is currently valued at over $20 billion. The company was founded in 2011 and has rapidly grown to become one of the most popular video conferencing solutions. 

Ark is one of the largest shareholders of Zoom. According to the latest filings from Ark, the fund currently holds a 4.34% stake in the company. Furthermore, Zoom makes up 8.51% of Zoom's portfolio.

The fund's investment in Zoom provides them with an opportunity to capitalize on the growth of its industry and build a long-term position in a company well-positioned to benefit from the ongoing shift to remote work, despite the pandemic losing steam.

According to analysts, Zoom's share could also be snapped up at a relative bargain. It's currently trading 51.6% below the MarketBeat consensus price target. However, its EPS is also expected to contract a massive 40.63% from $1.28 to $0.76 per share.

Tesla

Tesla (NASDAQ: TSLA) is Ark's third-largest portfolio holding. It constitutes around 6.95% of Ark's portfolio value and has caused controversy for Cathie Wood.

Critics of the move have argued that such a large investment in a single company is too risky for a fund that has been around for only a few years. Furthermore, they point out that Tesla is a volatile stock prone to wide price swings, making it a risky bet.

Tesla's stock price is currently down 62.01% over the past year, severely curbing its previously meteoric price-to-earnings (P/E) ratio, thus undervalued on a relative basis.

Tesla has made significant strides in developing its electric vehicles, which are becoming increasingly popular. Its Model 3 has become the best-selling luxury car in the USA and is being embraced by people worldwide. The company has also been making significant investments in autonomous driving technology, which could be a major growth driver in the coming years.

According to analysts, the situation for Tesla could be in the process of improving. It's currently 70.4% below the MarketBeat consensus price target , and its EPS has a projected earnings growth of 27.78%. That reflects an appreciation from $3.60 to $4.60 per share.

Should you invest $1,000 in ARK Innovation ETF right now?

Before you consider ARK Innovation ETF, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and ARK Innovation ETF wasn't on the list.

While ARK Innovation ETF currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

10 Best Stocks to Own in 2023

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
ARK Innovation ETF (ARKK)N/A$40.39+5.5%N/AN/AN/AN/A
Zoom Video Communications (ZM)
2.3956 of 5 stars
$74.15+3.6%N/A32.52Hold$103.76
Tesla (TSLA)
2.731 of 5 stars
$177.90+11.0%N/A49.10Hold$215.51
Compare These Stocks  Add These Stocks to My Watchlist 

Matthew North

About Matthew North

Contributing Author: Technology, Technical Analyst

Matthew is a freelance writer and equity analyst who started out by writing coverage on the cryptocurrency market and on emerging technologies. His work on artificial intelligence has been published by the NewScientist magazine and he is a former contributor to FXStreet. Before becoming an analyst, Matthew was a team member of several prominent startups in the crypto and fintech space. Matthew now specializes in covering companies in the technology sector and seeks to uncover stocks and entries with an asymmetric risk to reward ratio.
Contact Matthew North via email at darknetnz@gmail.com.

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