In this article, we discuss 5 Cathie Wood stocks to buy before the bull run starts. If you want to see more such stocks, click 10 Cathie Wood Stocks to Buy Before the Bull Run Starts.
5. Stratasys Ltd. (NASDAQ:SSYS)
Number of Hedge Fund Holders: 21
Stratasys Ltd. (NASDAQ:SSYS) is a Minnesota-based company that provides polymer-based 3D printing solutions. Its products and services are primarily used in the aerospace, automotive, transportation, healthcare, consumer products, dental, medical, and educational industries. The stock is in line with Cathie Wood’s disruptive tech investing strategy, and in the second quarter of 2022, and her ARK portfolio held more than 8 million shares worth about $170 million, representing 0.96% of the total 13F securities. As of August 17, the stock is down about 25% year to date, which presents an attractive buying opportunity before the bull market starts. She lifted her stake by 6% in Q2 2022.
On August 16, Credit Suisse analyst Shannon Cross initiated coverage of Stratasys Ltd. (NASDAQ:SSYS) with an Outperform rating and a $24 price target. The analyst observed that Stratasys Ltd. (NASDAQ:SSYS) is the sole 3D printing company in Credit Suisse’s coverage with an Outperform rating, given its “strong” operational performance and specialization in polymer technologies. The analyst contended that revenue is shifting to manufacturing applications and that margins should improve with revenue.
According to Insider Monkey’s Q2 data, 21 hedge funds were bullish on Stratasys Ltd. (NASDAQ:SSYS), with collective stakes worth $250 million. Renaissance Technologies held a notable stake in the company, comprising 946,432 shares worth roughly $18 million.
Here is what Alger Spectra Fund has to say about Stratasys Ltd. (NASDAQ:SSYS) in its Q1 2021 investor letter:
“Short position Stratasys also contributed to performance. Stratasys is one of the larger 3D printing companies. While additive manufacturing (3D printing) is a revolutionary concept, it has only seen its primary adoption for manufacturing prototypes and test parts, not high-volume end-use parts. Unfortunately for incumbents like Stratasys, additive manufacturing has continued to attract capital and dozens of new entrants have emerged with new technologies targeting specific applications. Industry pioneers like Stratasys have seen key patents expire and have lost market share to new competition. As a result of these factors, Stratasys has not grown for five years. Some industry participants believe that Stratasys’ plastic extrusion technology is simply too slow to be an acceptable solution for higher volume manufacturing. The short position contributed to portfolio returns when Stratasys’ shares declined due to year-over-year revenue contraction, continuing market share losses, a talent exodus, the issuance of new shares via a secondary offering, and no significant progress on developing new opportunities in promising additive verticals like metal and dental.”
