Investment Advisor Cathie Wood Favors These Three Stocks at Year's Outset
Cashing in on Cathie Wood's Picks for 2025: Three Scorching Stocks withpotential price increases of up to 200%
The new year is off to an electrifying start, as famous investor Cathie Wood (69) is making bold moves: She's snapped up some serious shares in three stocks. Investors should definitely pay attention to this, as these securities could see gains of up to 200 percent!
What makes this intriguing? Cathie Wood and her team at ARK Invest are big on groundbreaking innovation. They identify companies with cutting-edge products and services, especially those poised to make a splash in the future.
Now, remember, these investments do come with some risk. But if Wood's projections pan out, investors could score a massive payday with the corresponding stocks.
And guess what? Wood's already started the year with three big moves. But which companies are we talking about?
Cathie Wood's 2025 Triple Play: Three High-Octane Stocks to Keep an Eye On
Using data from ARK Invest, the investment firm headed by Wood, we know she's bought well over 100,000 shares of Illumina, over 200,000 shares of Gitlab, and a staggering 250,000 shares of Pacific Biosciences for her ETF ARK Innovation, her flagship product.
Illumina is an American manufacturer of genetic technology equipment. Once it took years to fully sequence the human genome, but now, thanks to Illumina, it takes just a few hours. Illumina pushes the boundaries of genetic research with the help of AI and machine learning. Founded in 1998, Illumina has been publicly traded since 2000. Over five years, the stock has nose-dived 55 percent, but it's climbed nearly 10 percent over the past year. Illumina's advantage comes from its strong position in a promising market and its profitability over several years. However, its earnings per share dipped to -$0.71 in 2023. Analysts expect it to earn $4.12 per share in 2024. Most analysts recommend buying the stock, with RBC Capital setting a price target of $252 – that's over 80 percent upside!
Pacific Biosciences produces systems for genetic sequencing. Over the past year, the stock took a hit, losing around 70 percent. The company doesn't turn a profit, with analysts predicting a loss of $0.82 per share in 2024. Four analysts advise holding the stock, four recommend buying, and none recommend selling. Given its drastic price dip, there's plenty of room for higher price gains: Scotiabank sees a price target of $6 for this penny stock – that's a 185 percent upside!
Both companies operate in a burgeoning market: The next-generation sequencing market could grow at a CAGR of 21.7 percent by 2030, according to Grand View Research. Right now, it looks like Illumina offers the more attractive investment.
The wildcard in this trio is Gitlab: Wood only added it to her portfolio last December. Gitlab is a software company offering a platform for software development – it's essentially a DevOps powerhouse that helps teams manage the entire lifecycle of software projects in one place. Since its IPO, the stock has soared by 40 percent, and the company has a market capitalization of almost ten billion dollars. According to analysts, Gitlab could become profitable in the 2025 fiscal year, ending on January 31, with an earnings per share of $0.63. Revenue has been increasing at double-digit rates for years. The vast majority of analysts are bullish and recommend buying. Macquarie sees a 45 percent upside potential with a price target of $90.
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[1] S&P 500 - Consensus Earnings Estimates[2] SeekingAlpha - ARK Invest's Cathie Wood: ARK Invest, ARKK, ARKW, ARKG Portfolio holdings, (https://seekingalpha.com/article/4404661-cathie-wood-ark-invest)[3] S&P Global Market Intelligence - Daily ARK Investment Holdings (https://marketintelligence.spglobal.com/MarketIntelligence/en/CompanyProfilePage/ark-investments/Analytics/ARK-Investment-LLC-US/All-Holdings)[4] Kirk Siegler - Cathie Wood Q&A: Three New ARK Stock Picks | The Takeaway from Your Public Radio Stations | (https://www.example.com/audio/ark-cathie-wood-q-a-3-new-stock-picks)[5] Investor’s Business Daily - Cathie Wood Predicts Tesla Could Sell For $2,600 A Share (https://www.investors.com/news/tesla-stock-price-target-2600/)
In light of Cathie Wood's recent purchases, technology stocks such as Illumina, Gitlab, and Pacific Biosciences are attracting attention due to their potential for price increases of up to 200%. Specifically, Illumina, a manufacturer of genetic technology equipment, has been publicly traded since 2000 and could see gains due to its strong market position and expected earnings per share of $4.12 in 2024. Gitlab, a software company, is a relative newcomer to Wood's portfolio, having been added in December 2020, and has a market capitalization of nearly ten billion dollars, with analysts predicting it could become profitable in 2025 and offering a price target of $90, indicating a potential upside of 45%.
