Cathie Wood is one of the most influential institutional investors today. The founder and CEO of the investment management company ARK Invest gained popularity after her firm had a breakout year in 2020. The ETF firm grew to…
$34.5 billion in assets under management at the end of 2020 from $3.1 billion in 2019, and five of the firm’s six ETFs, including its flagship fund, ARK Innovation ETF (ARKK), have gained in triple-digits over last year.
Wood, who believes in investing in companies that can potentially be disruptive innovators in their fields and sustain long-term growth, recently stated that her stocks seem to be in the ‘deep-value’ category and should generate hefty returns over the next five years. ARKK has gained 6.9% over the past five days, outperforming the broader SPDR S&P 500 ETF Trust’s (SPY) 1.7% gains over the same period.
Hence, the stocks of Regeneron Pharmaceuticals, Inc. (REGN – Get Rating), Vertex Pharmaceuticals Incorporated (VRTX – Get Rating), and Trimble Inc. (TRMB – Get Rating), in which Cathie Wood has invested, might be solid bets on their dips.
Regeneron Pharmaceuticals, Inc. (REGN – Get Rating)
REGN operates as a biotechnology company that provides medicines for treating myriad diseases like eye diseases, inflammatory and hematologic conditions, and infectious diseases like Ebola and COVID-19. REGN has a 0.14% weighting and is ranked #96 across all funds of ARK Invest.
On December 13, REGN and pharmaceutical company Sanofi (SNY) announced detailed positive Phase 3 results for Dupixent® (dupilumab) in greatly reducing itch in infants and children between the ages of six months and five years. These results will form the basis of regulatory submissions in the United States this year and in the United Kingdom in early 2022. And the treatment might add to the company’s revenue stream in the future.
On November 12, the company declared a share repurchase program of up to $3 million of its outstanding common stock. The program is expected to become a part of a broader capital allocation strategy and facilitate investment opportunities.
For its fiscal third quarter, ended September 30, REGN’s revenues increased 50.5% year-over-year to $3.45 billion. Its income from operations rose 75.4% from the prior-year quarter to $1.85 billion. Its non-GAAP net income and non-GAAP net income per share improved 84.4% and 83.9%, respectively, to $1.77 billion and $15.37.
A $18.47 consensus EPS estimate for the current quarter (ending December 2021) indicates a 93.8% year-over-year increase. And the $4.34 billion consensus revenue estimate for the current quarter reflects a 79% rise from the prior-year quarter. Furthermore, REGN has an impressive surprise earnings history; it has topped consensus EPS estimates in each of the trailing four quarters.
The stock has gained 26% in price over the past year but declined 2.3% over the past five days to close yesterday’s trading session at $617.48. It is currently trading 10.1% below its 52-week high of $686.62.
REGN’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
REGN has a Value and Sentiment grade of A and a Growth and Quality grade of B. In the 469-stock Biotech industry, it is ranked #5.
Click here to see the additional POWR Ratings for REGN (Momentum and Stability).
Click here to checkout our Healthcare Sector Report
Vertex Pharmaceuticals Incorporated (VRTX – Get Rating)
Boston-based VRTX develops and commercializes therapies for treating cystic fibrosis, a condition that causes persistent lung infections. The company’s offerings include SYMDEKO/SYMKEVI, ORKAMBI, and KALYDECO therapies for treating patients with the disease. VRTX has a weighting of 0.71% and is ranked #35 across all the funds of Ark Invest
On December 1, VRTX announced…
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