3 Promising Cathie Wood Stocks That Will Make Early Investors Rich
Although the innovation space may be on the verge of a broader correction, certain ideas may pop higher, which brings us to Cathie Wood stocks to make you rich. One of the most respected names on Wall Street, Wood is the founder of ARK Invest, a global asset manager.
Primarily, the driving ethos of ARK Invest – and the many exchange-traded funds (ETFs) under its umbrella – is disruption. Through extensive research and advanced analytical tools not commonly available to retail investors, ARK seeks to deliver its clients consistent market-beating returns. Therefore, outsider investors can glean much from Cathie Wood stocks to make you rich.
Another factor that may benefit those who follow the matriarch of Wall Street is the “X” factor: influence. Unlike some random voice on the internet, when Wood buys (or sells) a security or asset, chances are, you’ll hear about it.
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On that note, below are promising Cathie Wood stocks to make you rich.
Kratos Defense (KTOS)
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An advanced defense contractor, Kratos Defense (NASDAQ:KTOS) specializes in directed-energy weapons, satellite communications, cybersecurity solutions, and unmanned systems. It’s the latter component that makes KTOS one of the most intriguing Cathie Wood stocks to make you rich. As a result, Wood increased equity exposure by 2.3% in the second quarter of this year.
To be sure, Kratos presents holding-the-bag concerns for current investors. Since the start of the year, KTOS gained over 47% of its equity value. However, over the past five years, the return only sits at 6.1%. Stated differently, I believe KTOS has an opportunity to rise even higher.
Yeah, it’s not particularly a good deal on paper. Right now, shares trade at a forward earnings multiple of 37.29x. That’s really high for the defense industry. Still, the paradigm of modern warfare has changed. Drones are in big time and unmanned solutions like Kratos offers will be huge in future conflicts. Notably, analysts peg shares as a strong buy with a $17.86 price target, implying nearly 21% upside.
PagerDuty (PD)
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Headquartered in San Francisco, California, PagerDuty (NYSE:PD) is a cloud computing firm specializing in incident response under a Software as a Service (SaaS) package. Increasingly, with companies turning to the digital ecosystem through innovations such as communication APIs (application programming interfaces), immediate incident responses are vital to support the customer experience.
That’s especially the case when – amid rising pressures against the consumer economy – competition now runs exceptionally high. Therefore, I’m not surprised that PD ranks among the top Cathie Wood stocks to make you rich. Indeed, Wood raised her equity holdings in PagerDuty by 5.6% in Q2 2023. Still, since the start of the year, PD slipped more than 16%.
That might be a mistake. Sure, PagerDuty isn’t profitable. However, the recent combo of rising revenue growth and paring net losses suggests profitability is somewhere on the horizon. Lastly, analysts rate PD a moderate buy with a $27.80 target, implying almost 29% growth.
Ginkgo Bioworks (DNA)
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Based in Boston, Massachusetts, Ginkgo Bioworks (NYSE:DNA) is a biotechnology firm that specializes in genetic engineering. Per its public profile, Ginkgo produces bacteria with industrial applications for other biotech companies, saving them the cost of reproducing the initial stages of synthetic biological design. As a result, it bills itself as an “Organism Company.”
Given its innovative potential, DNA represents one of the top Cathie Wood stocks to make you rich. However, it’s not without its risks. Since the January opener, DNA stock only gained a bit over 1%. And surely, critics will point out that since its 2021 public market debut, shares have hemorrhaged almost 85% of equity value.
Nevertheless, Wood raised her equity holdings in the firm by 3% in Q2. It may be a shrewd move because Fintel’s options flow data indicates that major traders have written put options that expire throughout 2024 at the strike prices of $1 and $2. That implies confidence that DNA stock won’t fall much further from where it stands now. Also, analysts rate DNA a moderate buy with a $4.58 target, implying over 186% upside potential.
On the date of publication, Josh Enomoto 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.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
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