Many of these Cathie Wood stocks have faced significant challenges in the first half of 2022. Wood’s innovation-focused exchange-traded funds (ETFs) were all the rage on Wall Street until the recent market downturn.
As Bloomberg recently reported, “Wood and her firm ARK Investment Management have been among the highest-profile victims of a stock selloff that has swept Wall Street as inflation takes off and the Federal Reserve raises borrowing costs.”
Investors have been keeping away from riskier technology stocks in favor of established industries that deliver steady profits. As a result, Wood’s flagship ARK Innovation ETF (NYSEARCA:ARKK) has fallen 50% year-to-date (YTD), whereas the S&P 500 and the NASDAQ 100 indices have only declined 11.9% and 17.4%, respectively.
The recent rout in technology stocks is undeniably significant. But if history is any guide, these declines will also be temporary. Innovation will continue to be a primary driving force of the modern economy. Accordingly, our readers might want to capitalize on the current selloff to invest in tech innovators at discount prices.
With that information, here are the five best Cathie Wood Stocks to buy in June:
Exact Sciences Corporation
Ionis Pharmaceuticals, Inc.
Kratos Defense & Security Solutions, Inc.
Cathie Wood Stocks to Buy: Exact Sciences (EXAS)
Source: Tada Images / Shutterstock
- 52-week range: $45.25 – $133.99
Biotech group Exact Sciences (NASDAQ:EXAS) focuses on the early detection and treatment guidance for cancer. It produces DNA-based tests for different forms of cancer.
In late April, management reported first quarter (Q1) financials. Total revenue was $486.6 million, an increase of 21% year-over-year (YOY). Diluted net loss per share grew to $1.04, compared to net loss of 18 cents the year before. Cash and equivalents totaled $817 million.
Recently, the company showcased several research studies, focusing on the efficacy and precision of its earlier detection products. Also presented were findings from the Mayo Clinic as part of the ongoing collaboration with Exact Sciences to advance the use of methylated DNA markers. They help in detecting a range of cancer types, including cutaneous melanoma, prostate cancer, and lymphoma.
EXAS stock has tumbled 40% YTD. Shares are trading at five times sales. Finally, the 12-month median forecast stands at $95.
Ionis Pharmaceuticals (IONS)
- 52-week range: $25.04 – $44.42
Ionis Pharmaceuticals (NASDAQ:IONS) researches and develops RNA-targeted therapeutics, utilizing an antisense oligonucleotide (ASO) drug discovery platform. These ASOs regulate the expression of a specific factor, which, if present, causes a particular disease. Ionis has three commercially approved medicines: Spinraza, Tegsedi, and Waylivra.
In early May, the company released Q1 earnings. Total revenue was $142 million compared to $112 million the previous year. Diluted loss per share was 46 cents compared to diluted loss per share of 64 cents last year. Cash and short-term investments totaled $2.1 billion.
In April, the company announced positive results in a study examining the efficacy of a new drug designed to reduce cholesterol. This drug is currently being developed in partnership with AstraZeneca (NASDAQ:AZN). It was found to reduce cholesterol in patients by more than 70%.
Ionis currently represents close to 7% of the ARK Genomic Revolution ETF. So far in 2022, IONS stock has appreciated 13.8%. At current prices, its price-to-sales ratio is 6.6x. Lastly, the 12-month median forecast stands at $47.
Cathie Wood Stocks to Buy: Kratos Defense & Security Solutions (KTOS)
Source: Michael Vi / Shutterstock.com
- 52-week range: $12.54 – $30.29
Next up is the aerospace and defense name Kratos Defense & Security Solutions (NASDAQ:KTOS). It specializes in directed-energy weapons, unmanned systems, satellite communications, cyber security, missile defense and other related systems.
In early May, Kratos reported Q1 metrics. Total revenue was $196.2 million, up slightly from $194.2 million the year before. Diluted loss per share was 12 cents compared to a diluted earnings per share (EPS) of one cent the previous year. Cash and equivalents totaled $254.4 million.
Recently, the company announced that its OpenSpace platform had been selected by Intelsat (OTCMKTS:INTEQ) to be a key component in its next-generation network. This platform is expected to unify the operations of Intelsat’s ground and space systems, improving efficiency.
KTOS stock has dropped 23% YTD. Shares are trading at 2.2 times sales. Meanwhile, the 12-month median forecast stands at $20.50.
Source: Tada Images / Shutterstock.com
- 52-week range: $59.89 – 96.49
Tech name Trimble (NASDAQ:TRMB) specializes in various industrial applications. It provides technological solutions to eight industrial sectors: agriculture, construction, geospatial, government, natural resources, infrastructure, transportation, and utilities.
In early May, company management reported Q1 financials. Revenue was $993.7 million, an increase of 12% YOY. Adjusted EPS was 73 cents, up from 66 cents a year ago. Cash and equivalents totaled $357.2 million.
Recently, the company launched SketchUp for Apple’s (NASDAQ:AAPL) iPad, a design app for interior designers, engineers, architects, and construction professionals. The app uses machine learning to turn drawings made with the Apple Pencil into 3D models. It also offers a variety of tools for collaborating on, editing, and annotating models.
Like our previous stock Kratos, Trimble is a significant holding of both the ARK Autonomous Technology and Robotics ETF and the ARK Space Exploration & Innovation ETF.
So far in 2022, TRMB stock has declined 22%. At current prices, forward price-to-earnings and price-to-sales numbers are 23.3 and 4.4, respectively. Finally, the 12-month median forecast stands at $94.
Cathie Wood Stocks to Buy: UiPath (PATH)
Source: dennizn / Shutterstock.com
- 52-week range: $13.66 – $74.10
Software group UiPath (NYSE:PATH) creates robotic process automation software. It offers scores of components that automate repetitive tasks for a variety of applications. Its Robotic Process Automation software aids in streamlining processes, increasing efficiency, as well as decreasing errors.
In early June, UiPath issued Q1 FY23 earnings. Revenue totaled $245.1 million, up 32% YOY. Net loss per share was 23 cents, compared to a net loss per share of $1.11 the year before. Free cash flow was negative $53.7 million.
Recently, the company announced a new partnership with Adobe (NASDAQ:ADBE) to integrate Adobe Document Services and Adobe Acrobat Sign into UiPath’s platform. This partnership could potentially increase efficiency and productivity by helping customers automate document processing.
PATH stock has tumbled 43% YTD. Shares are trading at 8.73 times sales. Lastly, the 12-month median forecast stands at $25.
On the date of publication, Tezcan Gecgil, PhD, did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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Author: Tezcan Gecgil
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