Below we presented Cathie Wood’s top 5 small-cap stock picks. For a lengthy discussion about Cathie Wood’s comments on inflation, interest rates, and bitcoin as well as a more comprehensive list of stock picks please see Cathie Wood’s Top 10 Small Cap Stock Picks.
5. PagerDuty, Inc. (NYSE: PD)
ARK’s Overall Allocation Rank: 16th
Market Cap: $3.648B
PagerDuty is a cloud computing company whose main business is centralized in a Software as a Service(SaaS) incident response platform. The company aims to link different groups or teams to real-time opportunities through a world-class digital system to help organizations further enhance any existing operations, maximize growth, escalate revenues and lighten any unforeseen security risk in order to deliver a quality and up to the mark customer experience.
The company delivered an enormous 105% return since Cathie Wood bought and allocated a 1.7% portion of their total equities to PagerDuty Inc., amounting to $287,930,000 that is equivalent to 10,620,814 number of PD shares.
4. Seres Therapeutics, Inc. (NASDAQ: MCRB)
ARK’s Overall Allocation Rank: 13th
Market Cap: $2.518B
Seres Therapeutics is a biotechnology company that aims to revolutionize microbiome therapeutics in order to further contribute to transforming lives of the many patients globally by working to provide a variety of world-class treatments for the different kinds of diseases that are accumulated by the human body. The company is composed of an exceptional class of drug development and microbiome experts who have vast experience in the discovery, innovation, and triumphant commercialization of a wide range of therapeutic products.
A $348,016,000 worth of shares is present in Cathie Wood’s portfolio. With an allocation of 2.06% of their total equities, the 12,293,033 shares of Seres Therapeutics, ranked 4th in our Top 10 list of Cathie Wood’s top small-cap picks.
3. Proto Labs Inc (NYSE: PRLB)
ARK’s Overall Allocation Rank: 10th
Market Cap: $4.968B
Proto Labs Inc. emerged as the Top 3 in our list and is part of ARK’s top 10 overall allocation ranking. Protolabs is a company that improves product development and optimizes the rapid manufacturing of technology-based 3D printing, metal sheet fabrication, and injection molding. According to Protolabs, their company is “The world’s fastest manufacturer of custom prototypes and on-demand production parts with manufacturing facilities in five countries.”
Cathie Wood was able to acquire 3,094,035 shares of PRLB amounting to $400,678,000 which equates to 2.37% of their total equities. With a market cap of $4.968 billion, the company was able to deliver a 40% return in ARK’s portfolio.
2. LendingTree, Inc. (NASDAQ: TREE)
ARK’s Overall Allocation Rank: 9th
Market Cap: $3.478B
Second in our list is LendingTree, Inc which has a market cap of $3.478 billion. As stated on its media website, “LendingTree is a lot more than mortgages. We are an online loan marketplace for various financial borrowing needs including auto loans, small business loans, personal loans, credit cards, and more. We also offer comparison shopping services for autos and educational programs. Together, these services serve as an ally for consumers who are looking to comparison shop among multiple businesses and professionals who will compete for their business.”
Basically, the company’s business platform provides access to a secured, efficient, and hassle-free form of lending on a digital scale.
LendingTree holds 2.45% of ARK’s total equities, which amounts to $413,659,000 worth of shares, and has generated a decent 44% return since being acquired by Wood.
LendingTree recently raised its revenue outlook for the fourth quarter amid the strong performance of its Home segment. The updated guidance sent its share up more than 16 percent in the previous trading session. The company now expects to report revenue in the range of $220 million to $222 million for Q4, as compared to its previous projection between $200 million to $215 million. The revised forecast is also in line with the consensus estimate of $213.3 million. Moreover, the company also lifted its variable marketing margin outlook to a range of $80 million to $82 million, versus its earlier projection of $72 million to $78 million.
1. 2U, Inc. (NASDAQ: TWOU)
ARK’s Overall Allocation Rank: 7th
Market Cap: $3.478B
Now we have arrived at the ‘crest’ of our Cathie Wood’s Top 10 Small-Cap Stock Picks. The Top 1 on our list brings us to 2U, Inc., a company with a $3.47 billion worth of market capitalization. 2U is an education-related company that partners with different universities to provide degree programs in a complete home-based setup.
The company’s main edge is that they give institutions and students access to a modernized form of learning that is beyond the conventional education system. 2U, Inc. was able to capitalize on the lockdowns and restrictions all over the world that is brought out by the pandemic since a lot of universities, colleges, and educational firms seeks for the need of continuous learning in connection to the world’s fast-paced modernization and developments.
According to the company, “At 2U, we combine a purpose-driven mission with a student-focused culture to bring universities into the digital age. From our industry-leading learning platform to clinical placements and career counseling, we help students achieve more.”.
2U, Inc. is part of ARK Investment Management’s Cathie Wood’s Overall Top 10 Holdings and is sitting on the 7th spot, with 2.65% of the fund’s total equities that amounts to 13,238,782 market shares with a value of $448,265,000. It delivered a 38% investment return since its acquisition.
Please also see 10 Best Stocks To Buy and Hold For Five Years According to Cathie Wood and 11 Best Lithium and Battery Stocks To Buy.
