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These three Cathie wood stocks were set to shred higher at 40% (or more)

The markets have lately been a mix of gains and volatility, and it is sometimes difficult for investors to understand them. At times like these, it makes sense to turn to experts. One such expert is Cathy Wood, an investor whose stock options have consistently outperformed the markets as a whole. Under the auspices of the renowned economist Arthur Laffer, market expert Wood has built her reputation on her insight into the markets. Her company is Ark Invest, whose Innovation ETF has more than $ 52 billion in assets under management, making it one of the largest institutional investors on the scene. Better yet, Wood’s stock choices paid off during the “Year of Coronavirus”; The ETF’s overall return in 2020 was an impressive 170%. With returns like this, Cathy Wood clearly knows what to talk about when she picks a stock. So, we take a look at three of her stock options, all from the “top ten” of her company’s holdings, by weight percentage within the portfolio. Using TipRanks, we found that according to some Street analysts, they each have a potential of at least 40% spike for the next year. Let’s get the lowdown. Teladoc Health, Inc. (TDOC) The number one stock on our list, Teladoc, was one of the “first adopters” in the telehealth sector, making telemedicine available for non-emergency issues. Patients can use Teladoc for consultations on ENT matters, laboratory referrals, basic diagnoses, medical advice, and prescription packages for non-addictive substances. Teladoc billed its service as providing long distance home calls by primary care physicians. Despite the apparent benefits of Teladoc during the year of the pandemic, and steadily increasing revenues, the company’s shares have underperformed the broader markets in the past 12 months. Taking a look at our most recent Quarterly Report – Q1-21 – will shed some light. The company posted $ 453.6 million on the top line, an impressive increase of 150% year-on-year. But the winnings tell a different story. At $ 199.6 million, the first-quarter net loss was much deeper than last year’s $ 29.6 million net loss. For a share, the loss was $ 1.31, compared to just 40 cents a year ago. The losses touched the minds of the investors, but the company’s guidance was more of a concern. Management expects paid membership to be flat year on year in 2021. The stock fell 10% after earnings were announced. Nevertheless, Cathy Wood started buying the shares, taking advantage of lower prices to increase its holdings of TDOC. Her company bought more than 716,000 shares, worth more than $ 122 million at the time of purchase. Teladoc is Ark # 2 holding company, and it makes up over 6% of the fund’s portfolio. While BTIG analyst David Larsen points to investor concerns, he believes the long-term outlook for the company remains positive. “The problem that may affect the stock, is that membership guidance for 2021 from 52 to 54 million (+ 2% year over year) has not changed,” said Larsen. “Despite these headwinds, we still love the company and the stock. Management highlighted that the“ organic pipeline ”is now up by more than 50% year-over-year, higher than reported in Q4: 20, and many of these deals are progressing. TDOC also won a large BCBS plan in the Northeast due to its “full person” model, which is a competitive acquisition process. We believe management’s comments about the membership pipeline are highly calculated, and we expect membership growth in 2022 to be much better than the growth rate in 2021. ” In keeping with his comments, Larsen rated the TDOC as a buy, and its $ 300 target would mean an 83% gain for next year. (To see Larsen’s record, click here.) Overall, Teladoc gets a moderate buy from analyst consensus, a rating derived from 23 reviews that include 14 for buying and 9 for booking. The shares are priced at $ 163.21 and have an average target price of $ 243.68, making the one-year rally strong at 49%. (See Teladoc stock analysis at TipRanks.) Zoom Video Communications, Inc. (ZM) Next, Zoom, needs no introduction. The tech-based video communications company had a low profile in 2019, but in the 2020 Corona crisis, came Zoom. The company saw a massive expansion in usage and its user base, and its stock peaked in November 2020 at a price well above $ 500 per share. It’s been down since then – but even after that drop, ZM shares are still showing a one-year gain of 121%. The decrease in the share price of Zoom may be best viewed as a temporary volatility in a stock that is otherwise healthy. Zoom went public in April of 2019 and has reported back-to-back gains in revenue and profits every quarter since – with gains accelerating last year. For the fourth quarter of fiscal year 2021, the most recent reported report, Zoom reported $ 882.5 million on the top line, up 13.5 percent in a row and 368 percent year-on-year. Earning per share in the fourth quarter was 87 cents. That’s compared to just 5 cents per share of income the previous year. Zoom reported $ 377.9 million in free cash flow for the fourth quarter of Year 21, compared to $ 26.6 million the previous year. On customer metrics, Zoom reported an equally strong growth. It had 467,000 customers with more than 10 employees, 470% growth year-on-year, and 1,644 customers who paid more than $ 100,000 in the next 12 months, up 156% year-over-year. As for Cathy Wood, she believes Zoom will continue to grow, saying, “I think it will usurp a lot of the old communications infrastructure.” Two Wood’s Ark funds hold stakes in Zoom, more than 2.4 million shares in total, and Zoom makes up approximately 3.40% of Ark’s portfolio. 5-star analyst Daniel Bartos, of Merrill Lynch, also loves ZM posts, writing about the company model, “In our view, Zoom’s superior video experience cemented its position as the post-COVID transition meeting platform. As the pandemic lingers, companies adopt a more resilient workforce. In the post-pandemic phase, we believe that 2021 will be another good year for Zoom. In the post-pandemic phase, we believe Zoom remains well positioned as the new communications standard, and the increase in Zoom Phone sales, rooms, and additional features across its 467,000 customer base offset the risks. Turmoil across smaller clients. ”Bartus is placing a buy rating for the stock, with a price target of $ 480 indicating a potential 52% hike for next year. (To see Bartos’ record, click here.) Wall Street’s views on Zoom offer some mystery. The analyst consensus here is a comment, based on reviews that include 6 to buy, 10 to hold, and 2 to sell. On the other hand, the average target price per share of $ 444.40 indicates a 41% rise on the one-year horizon. (See Zoom stock analysis at TipRanks.) Shopify, Inc. (SHOP) Last on Wood’s picks list, Shopify, is a Canada-based e-commerce giant that needs no introduction. Shopify has been around for 15 years, and was an early pioneer in providing e-commerce platforms to third parties. The company’s services include payment processing, marketing, shipping, and customer engagement. Shopify grossed $ 2.93 billion last year, and has seen successive revenue gains in each of the past four quarters. While the stock has found 2021 more adversity, it’s still up 77% over the past 12 months, easily beating the S&P 500’s one-year 47% gain. Starting in 2021, Shopify reported revenue growth of 110% year-over-year for the first quarter, with the cap reaching $ 988.7 million. The company’s first-quarter earnings per share of $ 9.94 per share was inflated due to unrealized gains from an equity investment, making the comparison difficult, but the company also recorded $ 7.87 billion in cash assets as of the end of March, compared to $ 6.39 billion. At the end of December. Strong earnings in revenue and cash assets are supported by a growing user base. The Shopify mobile app, Shop, now has over 107 million registered users, of which 24 million are monthly active users. And the company has good word of mouth ads; 45,800 of its “partners” referred a fellow dealer to service in the past 12 months, a year-on-year increase of 73%. Given all this, Cathy Wood thinks we may be seeing the beginning of the “next Amazon”. She says, referring to the company’s market position and growth prospects, “Shopify doesn’t care who wins. You’ll partner with many, if not most, all of the sites that will boost commerce.” Their Ark Funds gobble up SHOP shares – they own more than 690K, worth more than $ 754M at the current valuation. Colin Sebastian, 5-star analyst at Baird, agrees that Shopify is a stock to buy. He wrote: “We view high spending levels as supporting massive e-commerce market opportunities, maintaining a high level of innovation in platform services, and maintaining a high level of scalability. As such, we will be stock buyers on any withdrawals linked to margin suspensions. … we believe that Shopify will continue to be the primary beneficiary of the migration toward multi-channel e-commerce as businesses take advantage and incorporate a wide range of consumer touch-points to increase sales – including offline, online, in-store, mobile, kiosks, and call centers. “. Sebastian’s target price here, $ 1550, points to a 42% rally for the next 12 months. Rated outperform (no purchase). (To see Sebastian’s record, click here.) High-profile tech companies tend to garner a lot of attention, and Shopify has picked up at least 30 reviews from analysts in recent weeks. These are divided into 16 longs, 13 longs, and only one sale, making the analysts’ consensus on a moderate buy. The shares are priced at $ 1,092.01, and the median target price of $ 1,482.21 means they have room to earn 36% this year. (See Shopify Stock Analysis at TipRanks.) To find good stock trading ideas with attractive valuations, visit Best Stocks to Buy from TipRanks, a newly launched tool that unites all of TipRanks’ stock insights. Disclaimer: The opinions expressed in this article are only those of featured analysts. The content is intended to be used for informational purposes only. It is very important to do your analysis before making any investment.


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