5 Cathie Wood Stocks to Buy Before the Bull Run Starts

1. Autodesk, Inc. (NASDAQ:ADSK)

Number of Hedge Fund Holders: 53

Autodesk, Inc. (NASDAQ:ADSK) is a California-based company involved in providing 3D design, engineering, and entertainment software and services worldwide. Cathie Wood’s ARK Investment Management added 5% to its prior Autodesk, Inc. (NASDAQ:ADSK) position in Q2 2022, holding 44,254 shares worth more than $9 million. Cathie Wood has been bullish on Autodesk, Inc. (NASDAQ:ADSK) since 2018, and the stock has plunged about 20% year to date, which presents an attractive buying opportunity before the bull run starts. 

Mizuho analyst Gregg Moskowitz on August 17 raised the price target on Autodesk, Inc. (NASDAQ:ADSK) to $290 from $250 and maintained a Buy rating on the shares. After an extended sell-off, software and the broader market have notably rallied in the last weeks, the analyst told investors. The analyst has “picked up more indications of softening enterprise software demand, albeit not anything reflective of a material change”. He thinks software valuations remain attractive.

According to Insider Monkey’s data, 53 hedge funds were bullish on Autodesk, Inc. (NASDAQ:ADSK) at the end of June 2022, up from 50 funds in the earlier quarter. Ian Simm’s Impax Asset Management is the leading position holder in the company, with 1.2 million shares worth $221.2 million. 

Here is what Polen Global Growth has to say about Autodesk, Inc. (NASDAQ:ADSK) in its Q4 2021 investor letter:

“We added to Autodesk on share price weakness. Near-term concerns have made the valuations of the company quite attractive in our view. Autodesk has consistently reported solid results, but management recently provided lower than expected guidance, noting supply chain issues, inflation squeezing its customer margins, global labor shortages, and complications from rolling and unpredictable COVID lockdowns globally. In aggregate, these issues mean that fewer client projects have been completed, despite high endmarket demand. Ultimately, many of these productivity pressures will likely drive the need to digitize further.

To be clear, much of the pressure on Autodesk’s share price recently was due to expectations, not a decline in the fundamentals of the business. The company continues to grow revenues at greater than mid-teens rates while simultaneously enjoying record renewal rates. While each of the noted factors present real challenges in the near term, we think the lower share price provides long-term investors an opportunity. Given the secular trend towards digitization and the ever-increasing mission-critical nature of Autodesk’s products, we are confident in the long-term investment case.”

You can also take a look at 10 Best Stocks To Buy Now According to Billionaire Marc Lasry’s Avenue Capital and 7 Energy Stocks to Buy Now According to Billionaire Leon Cooperman. 

Follow Insider Monkey on Twitter