These 3 Cathie Wood stocks will be 40% (or more) higher
Recently, markets have been a combination of profits and instability, and it is sometimes difficult for investors to understand this. In times like these, it makes sense to turn to experts. Cathie Wood is one such expert, an investor whose choice of stocks consistently exceeds common markets. A protégé of renowned economist Arthur Laffer, market guru Wood has built his reputation with a clear view of markets. Her firm is Ark Invest, whose Innovation ETF has over $ 52 billion in assets under management, making it one of the largest institutional investors on the scene. Better yet, Wood̵
7;s stock selection went back to “the year of the crown; the total return of the ETF in 2020 was a staggering 170%. With such returns, it is clear that Katie Wood knows what she is talking about when choosing an action. So, we look at three of her stock options, all of her company’s “top 10” holdings, as a percentage of the portfolio. Using the TipRanks platform, we found that according to some Street analysts, everyone has at least a 40% potential to increase next year. Let’s take the low level. Teladoc Health, Inc. (TDOC) The first stock on our list, Teladoc, was one of the “early deployment” companies in the telehealth sector, providing remote medical care for non-emergency problems. Patients can use Teladoc to consult on ear-nose-throat issues, laboratory recommendations, basic diagnoses and medical advice, as well as prescription fillers for non-addictive substances. Teladoc charges for its service by offering remote home calls from primary care physicians. Despite the obvious benefits of Teladoc’s service during the pandemic year and steadily rising revenue, the company’s shares have performed weaker than wider markets in the past 12 months. A look at the latest quarterly report – for 1Q21 – will shed some light. The company reported $ 453.6 million at the top, which is an impressive 150% over the previous year. However, the profits told a different story. At $ 199.6 million, the net loss in the first quarter was much deeper than the loss of $ 29.6 million for the quarter a year ago. The loss per share reached $ 1.31, compared to just 40 cents a year earlier. The losses weighed on the minds of investors, but the company’s management was more worried. Management predicts that paid membership will be equivalent on an annual basis in 2021. Shares fell 10% after the release of profits. However, Cathie Wood began buying shares, taking advantage of the drop in price to increase its holdings of TDOC. Her company bought more than 716,000 shares, worth more than $ 122 million at the time of purchase. Teladoc is Ark’s number 2, representing over 6% of the fund’s portfolio. While BTIG analyst David Larsen notes investors’ concerns, he believes the company’s long-term outlook remains positive. “The issue that may weigh on the shares is the guidelines for membership in 2021 of 52-54 million (+ 2% y / y) remained unchanged,” Larsen said. “Despite this pop wind, we still like the company and the shares. Management stressed that the “membership pipeline” has now increased by more than 50% on an annual basis, which is higher than reported in 4Q: 20 and many of these deals are progressing. TDOC also won a big plan for BCBS in the Northeast thanks to the whole person model and this is a competitive withdrawal. We believe that the management’s comments on the membership pipeline are very calculated and we would expect that the growth of membership in 2022 will be far better than the growth rate in 2021. “According to his comments, Larsen assesses TDOC as purchase and its price price of $ 300 implies an increase of 83% for next year. (To watch Larsen’s recording, click here.) Overall, Teladoc received a moderate buy from analysts’ consensus, a rating derived from 23 reviews, which included 14 for purchase and 9 for retention. The shares are valued at $ 163.21 and have an average price price of $ 243.68, which makes the growth for one year stable 49%. (See Teladoc’s stock analysis in TipRanks.) Zoom Video Communications, Inc. (ZM) Then Zoom needs no introduction. This video communications technology company had a low profile in 2019, but in the coronal crisis of 2020, Zoom came of age. The company recorded a huge expansion, in use and consumer base, and its shares reached their peak in November 2020 with a price well over $ 500 per share. It has since declined, but even after this decline, ZM shares are still showing a one-year rise of 121%. The reduction in the stock price in Zoom can best be seen as temporary stock volatility, which is otherwise stable. Zoom became publicly available in April 2019 and reported a consistent increase in revenue and profits in the quarter since then, with profits accelerating last year. For the last reported for the fourth quarter of fiscal 2021, Zoom reported $ 882.5 million in the upper limit, growing consistently by 13.5% and a huge 368% over the previous year. EPS was 87 cents in the last quarter; this compares to just 5 cents a share of earnings a year earlier. Zoom reported $ 377.9 million in free cash flow for 4Q21, up from $ 26.6 million a year earlier. In customer indicators, Zoom reports just as strong growth. There were over 467,000 customers with more than 10 employees, an increase of about 470% on an annual basis and 1,644 customers who paid over $ 100,000 over the next 12 months, which is 156% more on an annual basis. As for Cathie Wood, she believes Zoom will continue to grow, saying, “I think it will usurp a lot of the old telecommunications infrastructure.” Two of Wood’s Ark’s holdings own shares in Zoom, totaling more than 2.4 million shares. , Zoom makes up approximately 3.40% of Ark’s portfolio. 5-star analyst Daniel Bartus of Merrill Lynch also likes ZM’s stock and writes about the company’s model: “We think Zoom’s superb video experience has solidified its position as a post-COVID meeting platform. As the pandemic persists and businesses adopt a more flexible workforce, we believe 2021 will be another good year for Zoom. We believe that after the pandemic, Zoom remains well positioned as the new communication standard, and the sale of Zoom Phone, Rooms and additional features in the customer base of 467,000 compensates for the risk of downtime for smaller customers. “Bartus has set a rating for the purchase of shares, with a price price of $ 480 suggesting a potential increase of 52% next year. (To watch Bartus’ recording, click here.) Wall Street views for Zoom offer a bit of a mystery. Analysts’ consensus here is retention based on reviews, which include 6 to buy, 10 to hold, and 2 to sell. On the other hand, the target of the average share price of 444.40 dollars implies an increase of 41% over the one-year horizon. (See Zoom stock analysis in TipRanks.) Shopify, Inc. (SHOP) The last on our list of Wood’s choices, Shopify, is the Canada-based e-commerce giant that needs no introduction. Shopify has been around for 15 years and was an early leader in providing e-commerce platforms to third parties. The company’s services include payment processing, marketing, delivery and customer engagement. Shopify earned $ 2.93 billion last year and has seen consistent profits in each of the last four quarters. While the stock has found another 2,021 slogans, it has still risen 77% in the last 12 months, easily beating 47% of the S&P 500’s earnings in one year. From 2021, Shopify reported 110% revenue growth in the first quarter, reaching a cap of $ 988.7 million. The company’s EPS in the first quarter, $ 9.94 per share, was inflated by unrealized earnings from equity investments, making it difficult to compare, but the company also reported $ 7.87 billion in cash at the end of March, compared with $ 39 billion at the end of December. Solid profits from revenue and cash are supported by a growing consumer base. The mobile app Shopify, Shop, already has over 107 million registered users, of which 24 million are active users per month. And, the company has good word of mouth advertising; 45,800 of its “partners” referred a fellow trader to the service in the previous 12 months, an increase of 73% on an annual basis. Looking at all this, Katie Wood thinks we may be seeing the beginning of the “next Amazon.” She says, citing the company’s market position and growth prospects, “Shopify doesn’t care who wins. He will be involved with many, if not most, sites that will boost marketing. “Her Ark funds are taking over SHOP shares – they own more than $ 690,000, valued at more than $ 754 million. Colin Sebastian, a 5-star analyst at Baird, agrees that Shopify is a buying stock. He writes,” We we see higher levels of spending as supporting the huge opportunity for e-commerce markets, maintaining a high level of innovation in platform services and maintaining a high level of scalability.As such, we would be stock buyers at any discounts related to the comment of margins … We believe that Shopify will continue to be a key beneficiary of the migration to multi-channel e-commerce as companies use and integrate a wide range of consumer touch points to drive sales – including traditional offline, online, shopping, mobile, pavilions and call centers. “Sebastian’s target here, $ 1,550, suggests growth of 42% over the next 12 months. Its rating is better (ie purchase). (To watch Sebastian’s record, click here.) High-profile tech companies tend to attract a lot of attention, and Shopify has garnered at least 30 analyst reviews in recent weeks. They are distributed up to 16 purchases, 13 retentions and only one sale, which makes the analyst’s consensus a moderate purchase. The stock is priced at $ 1,092.01, and the average price target of $ 1,482.21 suggests they have room to gain 36% this year. (See Shopify’s stock analysis on TipRanks.) To find good ideas for stocks trading at attractive ratings, visit TipRanks’s Best Buy Stock, a recently launched tool that brings together all TipRanks statistics. Disclaimer: The views expressed in this article are those of the analysts only. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.