Cathie Wood, known for her bold investment strategies through ARK Invest, continues to captivate the financial world with her stock picks. As of 2024, she remains focused on innovative and disruptive companies that promise significant growth potential. Among her top picks are companies in the sectors of electric vehicles (EV), gene-editing and software.
Wood’s investment philosophy revolves around identifying and backing companies that are leaders in technological advancements and poised for exponential growth. Her ability to foresee trends and invest in high-potential sectors has earned her a dedicated following.
With a $10,000 investment, the returns could be great for long-term investors. So, let’s examine seven of the best stocks to buy, all blue-chip companies with favorable analyst consensus ratings.
Tesla (TSLA)
Tesla (NASDAQ:TLSA) has revolutionized the automotive industry with its cutting-edge technology and ambitious vision for a sustainable future. Cathie Wood owns nearly 5.336 million shares of TSLA among her three ETFs.
In Q1 of 2024, Tesla reported revenue of $21.3 billion, marking a 9% decrease year-over-year (YOY), and missing the estimated $22.34 billion. The GAAP net income for the quarter was $1.07 billion, down from $1.62 billion in Q1 of 2023. Earnings per share (EPS) stood at 35 cents, aligning with the consensus estimate. Tesla delivered 386,810 vehicles during this period, with the Model 3 and Model Y comprising the majority of these deliveries.
Also, the company is committed to advancing its energy solutions, including solar products and energy storage systems like the Powerwall and Megapack. These initiatives align with Tesla’s broader vision of a sustainable future.
Roku (ROKU)
Pioneer Roku (NASDAQ:ROKU) offers a platform that connects users to a wide array of streaming services. As cord-cutting trends continue, Roku’s user base and advertising revenue are expected to grow significantly.
ROKU comprises around 7.13% of Cathie Wood’s total portfolio across her three retail ETFs. In Q1 of 2024, Roku reported revenue of $881.5 million, a 19% increase from the same period last year. The company posted an EPS loss of 35 cents, which was better than the expected loss of 64 cents.
Looking forward, Roku is well-positioned to capitalize on the ongoing shift from traditional TV to streaming. Moreover, the company aims to expand its international presence and increase its market share by partnering with more content providers and manufacturers.
Further, Roku focuses on enhancing the user experience through its Roku OS, which powers both its streaming players and smart TVs. This integrated ecosystem provides a seamless experience for users and valuable insights for advertisers.
Teladoc Health (TDOC)
Teladoc Health (NYSE:TDOC) provides virtual healthcare services, offering telemedicine solutions that have become increasingly important. Cathie Wood owns around 7.6 million shares of TDOC.
In Q1 of 2024, Teladoc Health reported revenue of $646.13 million, marking a 2.7% increase from $629.24 million in Q1 of 2023. Despite the revenue growth, the company posted a net loss of $81.9 million, or 49 cents per share. That was slightly below analysts’ expectations of a 47 cents per share loss. Adjusted EBITDA for the quarter was $63.1 million, reflecting a 20% YOY increase.
Additionally, Teladoc Health’s growth potential lies in its ability to expand access to healthcare through its virtual care platform. The increasing acceptance of telehealth services among consumers and healthcare providers positions Teladoc Health to benefit from the ongoing shift towards digital healthcare solutions. Importantly, TDOC is expanding its service offerings and improving user engagement through strategic partnerships and acquisitions.
Block (SQ)
Block (NYSE:SQ) is a financial services and digital payments company co-founded by Jack Dorsey. It has been at the forefront of the fintech revolution, offering solutions for small businesses and integrating cryptocurrencies into its services. In total, SQ comprises around 5.4% of Cathie Wood’s total portfolio.
In Q1 of 2024, Block reported strong financial results. The company achieved a revenue of $5.96 billion, surpassing the analyst estimates of $5.75 billion. Block’s EPS were 85 cents, significantly beating the consensus estimate of 72 cents.
Its Cash App branch generated a gross profit of $1.26 billion, a 25% YOY increase. And the Square segment reported a gross profit of $820 million, up 19% YOY. The overall gross profit for Block grew by 22% to $2.09 billion.
Looking forward, Block aims to further enhance its financial ecosystem by expanding its product offerings and entering new markets. The company’s strategic investments in blockchain technology and decentralized finance (DeFi) are expected to drive future growth.
Shopify (SHOP)
Shopify (NASDAQ:SHOP) is an e-commerce platform that enables businesses of all sizes to set up and operate online stores. As e-commerce continues to expand, Shopify’s innovative tools and services position it for sustained growth. SHOP comprises around 3% of Cathie Wood’s total portfolio.
In Q1 of 2024, Shopify reported strong financial results, with revenue reaching $1.9 billion, a 23% increase compared to the same period last year. Also, the Gross Merchandise Volume (GMV) increased by 23% YOY, reaching $60.9 billion.
Despite the impressive revenue growth, Shopify reported a net loss of $273 million, or 21 cents per share, compared to a net income of $68 million, or 5 cents per share, in the previous year. However, the adjusted earnings per share was 20 cents, which exceeded analysts’ expectations of 17 cents.
Finally, Shopify expects continued growth driven by the increasing adoption of e-commerce. For Q2 of 2024, the company anticipates revenue growth at a high-teens percentage rate YOY.
Zoom Video Communications (ZM)
Zoom Video Communications (NASDAQ:ZM) has become synonymous with video conferencing, providing a user-friendly platform that has seen widespread adoption for remote work and virtual meetings. Its ongoing development of new features and services supports its long-term growth. ZM stock comprises around 2.2% of Cathie Wood’s total portfolio.
In Q1 of 2024, the company reported revenue of $1.14 billion, representing a 3.3% YOY increase. And, the company’s adjusted earnings per share EPS were $1.16. The growth was driven primarily by enterprise customers, with revenue from this segment growing 13% YOY and representing 57% of total revenue, up from 52% in Q1 of 2023. Additionally, customers contributing more than $100,000 in trailing twelve-month revenue grew by 23% to 3,580, accounting for 29% of the company’s total revenue.
Zoom Video Communications continues to innovate and expand its product offerings beyond video conferencing. Zoom Phone, a cloud phone system, surpassed 10% of the company’s total revenue for the first time in Q1 of 2024.
Unity Software (U)
Unity Software (NYSE:U) is a leading platform for creating and operating interactive, real-time 3D content. Its technology is widely used in video games, simulations and various other industries. So, it is becoming a key player in the growing augmented and virtual reality (AR/VR)markets. Unity Software’s 2% weighting across the portfolio makes it a significant investment on behalf of Cathie Wood.
In Q1 of 2024, U reported revenue of $460.4 million, a decline of 8% YOY. This decrease was attributed to the divestiture of several non-strategic businesses. However, the company’s core offerings within its strategic portfolio saw a modest YOY growth of 2%, generating $426 million in revenue.
Moreover, Unity Software reported a GAAP net loss of $291 million, which includes restructuring charges and gains from the repurchase of convertible notes. Excluding these one-time items, the adjusted net loss was $141 million. The company’s Adjusted EBITDA improved significantly, reaching $79 million, up by $50 million compared to the same period last year.
Therefore, Unity Software’s strategic investments in AI and machine learning, coupled with its robust platform, position it well. Watch as it capitalizes on the growing demand for interactive, real-time 3D content in both gaming and non-gaming sectors.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Automotive, Cloud, Communications, Consumer Discretionary, E-Commerce, Electric Vehicles, Financial, Fintech, Healthcare, Media, Retail, Software, Streaming, Technology
