Full disclosure, I’m not a tremendous fan of Cathie Wood. Generally, I think she makes some terrible picks. For example, what many would consider the best Cathie Wood stocks to buy in April, and her two largest holdings were Coinbase (NASDAQ:COIN) and Tesla (NASDAQ:TSLA). Both companies’ valuations are in the stratosphere. And Coinbase is facing tremendous competition from Bitcoin (BTC-USD) ETFs, along with a potentially ruinous lawsuit by the SEC. Meanwhile Tesla is struggling amid a huge amount of competition from many veteran automakers and Chinese start-ups.
However, sometimes she does make great picks. For example, she was an early believer in Tesla before the stock soared tremendously. Here are the three best Cathie Wood stocks to buy in April. I believe that these names can, like the TSLA of the past, soar impressively.
Exact Sciences (EXAS)
Exact Sciences (NASDAQ:EXAS) specializes in developing tests for cancer. The Street has generally given the company no credit except for its colon cancer test, Cologuard, which generates huge amounts of revenue.
But that could be starting to change. On March 28 the company announced positive data on a non-endoscopic esophageal cancer test. The announcement caused EXAS stock to rally. Specifically, the shares jumped about 10% between March 28 and the afternoon of April 4.
Furthermore, the revenue from a number of the company’s other tests is booming or poised to soar. For example, the overseas revenue of Exact’s Oncoptype tests climbed 48% last quarter compared with Q4 of 2022. And, the firm is predicting that the sales generated by its Predictive Oncology unit will soar to $1 billion in the not-too-distant future.
The firm’s bright outlook makes it one of the best Cathie Wood stocks to buy.
Roku (ROKU)
Roku (NASDAQ:ROKU) owns the leading streaming operating system in the U.S.
Unsurprisingly, with streaming on the rise, Roku’s engagement numbers are soaring. In 2023, its streaming hours jumped 20% to over 100 billion, while its net user total surged by 10 million.
Ultimately, marketers buy ads based on the media that consumers are using, and Roku’s usage numbers are rapidly increasing. As a result, it’s unsurprising that the firm’s top-line rose an impressive 13.5% last quarter to $984.4 million. Given the continued, rapid proliferation of streaming, I expect Roku’s sales to continue growing quickly in the coming quarters and years.
Zoom Video (ZM)
During the pandemic, Zoom Video (NASDAQ:ZM) was a growth stock with a very high valuation. But now it’s actually a value stock with a rather low forward price-earnings ratio of 12.67 times.
In the fourth quarter of last year, the company’s revenue from enterprise customers rose 5% versus the same period a year earlier to $667 million, while its overall sales advanced only 2.7% year-over-year to $1.15 billion.
The discrepancy suggests that the firm is gaining a great deal of revenue from enterprises and slowly losing sales from consumers. Since the company makes more revenue from enterprises than from consumers and since enterprises have much bigger budgets than consumers, I think this dichotomy will cause the company’s growth to accelerate over the longer term.
On the date of publication, Larry Ramer held a long position in EXAS and a short position and put options expiring in March 2025 on COIN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
