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.”
4. UiPath Inc. (NYSE:PATH)
Number of Hedge Fund Holders: 24
UiPath Inc. (NYSE:PATH) is a New York-based company that offers an end-to-end automation platform with a range of robotic process automation solutions. UiPath Inc. (NYSE:PATH) stock has plunged more than 55% year to date as of August 17. Cathie Wood boosted her stake in UiPath Inc. (NYSE:PATH) by 12% in Q2 2022, holding 37.6 million shares worth $641.75 million, representing 3.79% of the total 13F holdings.
Canaccord analyst Kingsley Crane on July 7 initiated coverage of UiPath Inc. (NYSE:PATH) with a Buy rating and a $25 price target. He is bullish on UiPath Inc. (NYSE:PATH)’s ability to leverage automation in a large set of use cases and expects partners like EY and PwC to lend it “critical sales leverage,” the analyst told investors.
According to Insider Monkey’s Q2 data, 24 hedge funds were bullish on UiPath Inc. (NYSE:PATH), with combined stakes worth $1.26 billion. Alkeon Capital Management held a sizable stake in the company, comprising 15.4 million shares valued at $281.6 million.
Here is what ClearBridge Investments has to say about UiPath Inc. (NASDAQ:PATH) in its Q2 2021 investor letter:
“We participated in the IPO of UiPath, a developer of software for robotic process automation that uses AI, natural language processing and design to streamline complex processes across a variety of technology environments. The company is an industry leader with a superior solution for leveraging software to optimize workloads. Organizations around the world are beginning to understand the power of automation, with momentum picking up toward fully automating business processes, a $60 billion market today that could grow to $200 billion or more by 2030. UiPath has a unique pricing model, broad partner ecosystem and thoughtful management team supporting one of the strongest growth profiles in technology. Risks we are watching include a partial cloud transition ahead and increased competition from larger software platforms over time.”
3. monday.com Ltd. (NASDAQ:MNDY)
Number of Hedge Fund Holders: 25
monday.com Ltd. (NASDAQ:MNDY) is an Israel-based developer of work management software applications in the United States, Europe, the Middle East, Africa, and internationally. The stock has lost 57% in value year to date as of August 17. However, Cathie Wood strengthened her position in the stock by 14% in Q2 2022, holding 236,624 shares worth $26.8 million. On August 8, monday.com Ltd. (NASDAQ:MNDY) released its full-year guidance, which sparked a rally in cloud stocks. The company expects sales to be between $498 million and $502 million, up from the earlier outlook of $488 million to $492 million and compared to Wall Street consensus of $491.3 million.
On August 9, DA Davidson analyst Robert Simmons raised the price target on monday.com Ltd. (NASDAQ:MNDY) to $175 from $145 and kept a Buy rating on the shares. The company’s Q2 results exceeded investor expectations and alleviated fears of stronger macro headwinds or customer downgrades, the analyst told investors. The analyst added that despite forex headwinds and weakness in Europe, monday.com Ltd. (NASDAQ:MNDY)’s growth remains impressive as it scales.
Among the hedge funds tracked by Insider Monkey, 25 funds were bullish on monday.com Ltd. (NASDAQ:MNDY) at the end of Q2 2022, compared to 24 funds in the last quarter. Chase Coleman’s Tiger Global Management is the leading stakeholder of the company, with 778,126 shares worth $80.3 million.
2. InMode Ltd. (NASDAQ:INMD)
Number of Hedge Fund Holders: 27
InMode Ltd. (NASDAQ:INMD) is an Israeli company that develops minimally invasive aesthetic medical products for women’s health conditions and procedures in the United States and internationally. Cathie Wood increased her stake in InMode Ltd. (NASDAQ:INMD) by 29% in Q2 2022, holding 73,637 shares worth about $2 million. On July 28, the company reported its Q2 results, posting earnings per share of $0.59 and a revenue of $113.55 million, topping market consensus by $0.08 and $10.55 million, respectively.
Baird analyst Jeff Johnson on July 29 raised the price target on InMode Ltd. (NASDAQ:INMD) to $53 from $44 and kept an Outperform rating on the shares.
According to Insider Monkey’s data, 27 hedge funds were long InMode Ltd. (NASDAQ:INMD) at the end of June 2022, compared to 34 funds in the prior quarter. Jim Simons’ Renaissance Technologies is the leading position holder in the company, with 3.10 million shares worth about $69.5 million.
Here is what Alger has to say about InMode Ltd. (NASDAQ:INMD) in its Q3 2021 investor letter:
“InMode Ltd. was among the top contributors to performance. InMode designs, develops, manufactures and commercializes innovative minimally invasive and non-invasive aesthetic medical products. InMode’s platforms harness novel radio frequency (RF) technology to enable emerging minimally invasive procedures that bridge the gap between temporary treatments like facials and more invasive surgical procedures like facelifts across several categories of surgical specialties such as plastic surgery, gynecology, dermatology, ophthalmology and otolaryngology (ear, nose and throat care).
The aesthetics market is seeing strong tailwinds coming out of the Covid-19 pandemic. These tailwinds include the “Zoom effect,” or dissatisfaction with one’s personal appearance after viewing one’s own face on Zoom, which has resulted in more people deciding to undergo aesthetic procedures. De-stigmatization of aesthetics procedures, aided by social media platforms, is also supportive of InMode’s results. Between the strong growth of its existing product lines and the anticipated launch of two new products, investors perceive InMode as being well positioned to capitalize on the broader strength of the aesthetics market, which is a key reason shares outperformed in the third quarter.”
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.
