Cathie Wood, CEO of Ark Invest, has proven to be a maverick stock-picker of our time. Her popular Cathie Wood stock picks have helped build shareholder value for its avid followers. Her investment funds, tracked by the market punditry, hold shares across various stocks. To be fair, several of these have faced the music in the recent stock market downturn, while some harbor lingering questions about their long-term prospects.
However, some are prime opportunities for the discerning long-term investor amidst this assortment of stocks. These best ARK stocks reflect Wood’s disruptive and innovative investment strategies, which are focused on burgeoning technologies such as genomics, robotics, blockchain, and others.
Moreover, Woods is known for her gutsy stances on nascent companies ripe for explosive growth. With that said, let’s explore three of the top Cathie Wood recommendations.
Tesla (TSLA)
Weighting % in Cathie Wood’s Portfolio: 7.7%
The recent rally in Tesla (NASDAQ:TSLA) stock has left market analysts perplexed. Many have attributed its robust gains due to the buzz surrounding artificial intelligence technology and its positive long-term impact on Tesla. Even still, Tesla continues to shine as an EV behemoth with record deliveries quarter over quarter.
Despite a recent drop in profitability, Tesla has effectively captured capturing market share from competitors. Coupled with its tremendous profitability, which exceeds traditional automakers, Tesla’s prospects are incredibly bright. Even with a decrease in gross profit margin to 23% from last year’s 27%, Tesla’s profitability remains impressive.
From a broader perspective, Tesla’s high valuation is justified. Expect an upward trend in its stock price as the company continues to drive sales growth and improve profitability in the coming years. The future is full of potential, and Tesla is well-positioned to take advantage.
DraftKings (DKNG)
Weighting % in Cathie Wood’s Portfolio: 3.2%
Digital sports entertainment giant, DraftKings (NASDAQ:DKNG), has had a stellar run this year, doubling its stock value. An uptick in active users and a striking 84% year-on-year growth in first-quarter revenue have positioned the firm for tremendous upside.
In freshly legalized states, DraftKings has demonstrated its ability to capture a single-digit market share of the adult population quickly. The momentous shift towards sports betting legalization, characterized by the coveted New York State legalization last year, has only bolstered the firm’s standing. With its sports betting services reaching 42% of the U.S. population, the company’s growth trajectory is unquestionably upward.
Interestingly, despite reducing marketing spend, DraftKings has witnessed a surge in both active players and engagement. Also, DraftKings is well on its way to hitting its ambitious target of a substantial adjusted EBITDA profit by year-end.
UiPath (PATH)
Weighting % in Cathie Wood’s Portfolio: 5.4%
In the fast-paced world of business automation, UiPath (NYSE:PATH) is a front-runner. As a B2B firm, UiPath effectively leverages automation processes to ramp up profitability and improve margins. Its powerful AI-powered platform fuses top-tier robotic process automation (RPA) with comprehensive capabilities, delivering unparalleled value.
Boasting a three-year revenue growth rate of over 40%, UiPath is outpacing its competition and then some. Coupled with a solid EBITDA margin of more than 17% over the same period, it’s clear that UiPath is on a winning streak. Moreover, it kickstarted fiscal 2024 with impressive first-quarter revenue of $290 million, an 18% year-on-year increase. An ambitious $75 million is earmarked for research and development, reinforcing their commitment to innovation. Also, a robust operating cash flow of $67.3 million guarantees a secure financial path forward. UiPath is scripting a growth narrative, and the future looks bright indeed.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
