Cathie Wood is known for making risky investment bets on fundamentally sound growth stocks. Her bets on quality tech and electric vehicle (EV) stocks have led her to market-beating returns in the pandemic era. However…
since last year, Cathie Wood’s ARK ETFs have been hit hard by investors’ switch from growth to value stocks amid concerns surrounding skyrocketing inflation, the Fed’s tighter monetary policy, elevated stock valuations, and escalating war tensions between Russia and Ukraine.
Wood has been reshuffling her ETF holdings to mitigate the market headwinds. And the recent stock market turbulence provides a great opportunity for long-term investors to add quality Cathie Wood stocks to their portfolios. These stocks are trading at low prices, and we think are well-positioned to withstand the bearish market trends.
Given these factors, Wall Street analysts expect Cathie Woods stocks Coinbase Global, Inc. (COIN – Get Rating), Zoom Video Communications, Inc. (ZM – Get Rating), Unity Software Inc. (U – Get Rating), Roku, Inc. (ROKU – Get Rating), and Exact Sciences Corporation (EXAS – Get Rating) to surge in price in the coming months.
Coinbase Global, Inc. (COIN – Get Rating)
San Francisco-based COIN offers financial infrastructure and technology for the crypto-economy in the U.S. and internationally. The company provides the primary financial account in the crypto-economy for retailers and a marketplace with a pool of liquidity for transacting in crypto assets for institutions. In addition, it offers technology and services that enable partners to build crypto-based applications. The stock has a 4.88% weighting across all Ark ETFs.
In its fiscal year 2021 fourth quarter, ended Dec. 31, 2021, COIN’s total revenue increased 327% year-over-year to $2.50 billion. The company’s operating income grew 307.1% year-over-year to $922.32 million. And its adjusted EBITDA increased 318.8% from the prior-year period to $1.20 billion. COIN’s net income rose 375.3% year-over-year to $840.21 million. And its net income per share attributable to common shareholders grew 403% year-over-year to $3.32.
The company has an impressive earnings surprise history; it surpassed the consensus EPS estimates in three of the trailing four quarters.
COIN shares have slumped 39.3% in price year-to-date. However, the 12-month median price target of $304.93 indicates a 99.1% potential upside from yesterday’s closing price of $153.19. Among the 15 Wall Street analysts that rated COIN, 12 rated it Buy, two rated it Hold, and one rated it Sell. The price targets range from a low of $200.00 to a high of $405.00.
Zoom Video Communications, Inc. (ZM – Get Rating)
ZM in San Diego, Calif., provides a unified communications platform in the Americas, Europe, the Asia Pacific, the Middle East, and Africa. The company offers applications and platforms including Zoom Meetings, Zoom Phone, Zoom Chat, Zoom Rooms, Zoom Hardware-as-a-Service, Zoom Events, Zoom Webinars, and Zoom App Marketplace. It serves individuals, education, entertainment, enterprise infrastructure, finance, government, healthcare, manufacturing, and software. The stock has a 3.89% weighting across all Ark ETFs.
Last December, ZM partnered with oVice, Inc. to allow oVice’s customers to seamlessly access its Zoom meetings without switching from one tool to another. This business partnership is expected to boost ZM’s revenue streams.
ZM’s total revenue increased 21.4% year-over-year to $1.07 billion in its fiscal year 2022 fourth quarter, ended Jan. 31, 2022. ZM’s gross profit increased 32.3% year-over-year to $814.03 million. Its income from operations improved 16% year-over-year to $420.3 million. ZM’s net income grew 7.7% year-over-year to $393.58 million and the company’s net income per share rose 5.7% year-over-year to $1.29.
The $1.07 billion consensus revenue estimate for its fiscal year 2023 first quarter, ending April 30, 2022, represents 12.3% year-over-year growth from the same period in 2021. The company has an impressive earnings surprise history; it surpassed the consensus EPS estimates in each of all the trailing four quarters.
ZM stock has declined 48.5% in price year-to-date and 48% over the past three months. However, the 12-month median price target of $176.43 indicates a 76% potential upside. Among the 26 Wall Street analysts that rated ZM, 13 rated it Buy, while 13 rated it Hold. The price targets range from a low of $100.00 to a high of $295.00.
Unity Software Inc. (U – Get Rating)
U operates a platform for creating and operating interactive, real-time three-dimensional content. Its platform provides software solutions to create, run, and monetize interactive real-time 2D and 3D content for mobile phones, PCs, consoles, augmented and virtual reality devices. The San Francisco company serves creators, developers, designers, artists, engineers, and architects and offers solutions directly through online stores, field sales operations, distributors, and resellers. U has a 3.06% weighting across all Ark ETFs.
On March 11, 2022, U announced a new partnership with Insomniac Events, the world’s leading live music experience creator, to bring a brand new metaverse world to the community. This partnership might expand the company’s customer reach and profitability.
On Dec. 2, 2021, U completed the acquisition of Weta Digital’s tools, pipeline, technology, and engineering talent. “By bringing this team and technology to Unity, we can…
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