Cathie Wood stocks trading at a discount is our topic for today. The prominent fund manager and her team focus on disruptive innovation, considered by many to be a new paradigm in investing.
However, after skyrocketing in 2020, Cathie Wood stocks have had a dismal first-half in 2022. 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 cooled on technology stocks, instead opting for the relative safety of more traditional investments. Wood’s flagship ETF, the ARK Innovation ETF (NYSEARCA:ARKK), has lost about half of its value year-to-date (YTD). In comparison, the benchmark S&P 500 index has dropped 18% over the same period.
Despite recent setbacks, Wood’s innovation-centered investment strategy will likely pay off in the long run. Investors still have confidence in Cathie Wood, as ARK Innovation ETF saw the biggest inflows since May. Investors poured $323 million into the fund at the beginning of July.
With that information, here are seven Cathie Wood stocks trading at a discount.
|ZM||Zoom Video Communications||$101.11|
Coinbase Global (COIN)
52-week range: $40.83 – $368.90
Crypto exchange Coinbase Global (NASDAQ:COIN) boasts over 98 million verified users with a total of $256 billion in assets on its platform. Coinbase is represented in the ARK Innovation ETF, the Ark Next Generation Internet ETF (NYSEARCA:ARKW), and the ARK Fintech Innovation ETF (NYSEARCA:ARKF).
In early May, Coinbase reported first-quarter financials. Total net revenue was $1.17 billion, falling from $1.8 billion the year before. Diluted loss per share was $1.98 compared to a profit of $3.05 per share in the prior-year quarter. Cash and equivalents totaled $6.1 billion.
Recently, the company upgraded its crypto price dashboard Coinbase Prices and rebranded it as Coinbase Explore to provide users with a single platform to research the entire crypto-economy. Coinbase Explore will also include data on Decentralized Finance (DeFi) Protocols and non-fungible token (NFT) collections. Wall Street would like to see these new steps contribute to top line at Coinbase.
COIN stock has lost about three-quarters of its value since January. Shares are trading at 1.85 times sales. Meanwhile, analysts’ 12-month median price forecast stands at $90.
Fate Therapeutics (FATE)
52-week range: $17.10 – $97.43
Clinical-stage biopharma group Fate Therapeutics (NASDAQ:FATE) develops cellular immunotherapies for cancer patients. Its primary focus is using human-induced pluripotent stem cells (iPSCs) to create genetically engineered immune cells. We see Fate stock in the ARK Innovation ETF and the ARK Genomic Revolution ETF (BATS:ARKG).
In early May, Fate provided Q1 earnings. Revenue was $18.4 million, compared to $11.1 million the year before. Net loss per diluted share was 68 cents, compared to a loss of 49 cents the year before. Cash and equivalents totaled $64.7 million.
The biopharma play recently expanded its partnership with Japan-based ONO Pharmaceutical regarding the development of a chimeric antigen receptor (CAR) NK-cell therapy, which used genetically engineered natural killer (NK) cells to recognize cancer cells and destroy them. ONO will continue to provide funding to Fate.
So far in 2022, FATE stock has dropped 50%. The price-to-sales (P/S) number is 45.4x. Wall Street’s 12-month median price forecast stands at $82.
Intellia Therapeutics (NTLA)
52-week range: $37.08 – $180.59
Next up on our list of cathie Wood stocks is another biopharma name Intellia Therapeutics (NASDAQ:NTLA). It currently has 15 ongoing research projects involving the CRISPR CAS-9 genome editing tool with ongoing partnerships with Regeneron Pharmaceuticals (NASDAQ:REGN) and Novartis (NYSE:NVS). Intellia is included in both the ARK Innovation ETF and the ARK Genomic Revolution ETF.
In early May, Intellia put out Q1 metrics. Revenue was $11.3 million, compared to $6.4 million the prior year. Net loss per diluted share was $1.96, compared to a net loss per share of 69 cents the previous year. Cash and equivalents totaled $995 million.
Recently, the company presented positive results from a study being developed together with Regeneron. The treatment edits the genome of patients with transthyretin (ATTR) amyloidosis, “caused by a protein called transthyretin, or TTR, that changes its shape and forms into fibrous clumps.” Investors were excited about these results from Intellia and Regeneron.
NTLA stock has fallen 47% YTD. Shares are trading at 122 times sales. Meanwhile, analysts’ 12-month median price forecast stands at $125.
52-week range: $600.68 – $1970.13
MercadoLibre (NASDAQ:MELI) is the largest online commerce and payments platform in Latin America. MELI stock included in the ARK Next Generation Internet ETF and the ARK FinTech Innovation ETF.
In early May, MercadoLibre posted Q1 financial results. Net revenues totaled $2.2 billion, up 67.4% year-over-year (YOY). Diluted EPS was $1.3, compared to a loss of 68 cents per diluted share the previous year. Cash and equivalents totaled 1.57 billion.
Analysts highlight the growth in the payment solution MercadoPago, which is gaining rapid acceptance even outside its e-commerce marketplace. MercadoLibre’s growing ecosystem has made the compaany one of the most trusted businesses in Latin America.
So far in 2022, MELI stock has lost around 51%. Forward price-to-earnings (P/E) and P/S numbers are 95.2x and 4.5x, respectively. Wall Street’s 12-month median price forecast stands at $1350.
Teladoc Health (TDOC)
52-week range: $27,38 – $161.42
The pandemic put a number of companies into the limelight, including Teladoc Health (NYSE:TDOC), the virtual healthcare technology name. It services over 40 million members and relies on more than 3,100 licensed healthcare professionals.
Its virtual primary care service is known as Primary360. Teladoc stock is included in the ARK Innovation, ARK Next Generation Internet, ARK Fintech Innovation, and ARK Genomic Revolution ETFs.
In late April, Teladoc reported Q1 financials. Revenue grew 25% YOY to $565.4 million. Net loss per share was $41.58, compared to a net loss of $1.31 per share the year before. According to the company, this was primarily due to a non-cash goodwill impairment charge of $6.6 billion or $41.11 per share. Cash and equivalents totaled $836.4 million.
Recently, the company announced an expanded set of features available to Primary360 members. Added services include in-network referrals and care coordination capabilities, In addition, pharmacy name Capsule will provide same-day prescription delivery. Members will also have access to mobile laboratory specimen collection services by Scarlet Health, including phlebotomy.
So far in 2022, TDOC stock has tumbled 58% YTD. Shares are trading at 3.1 times sales. Meanwhile, analysts’ 12-month median price forecast stands at $42.
52-week range: $620,57 – $1243.49
A discussion on Cathie Wood stocks would not be complete without Tesla (NASDAQ:TSLA). Its EV range includes the Roadster, Model S, Model X, Model 3, and Model Y, alongside the Tesla Semi, a battery-powered semi-trailer truck, and the Tesla Cybertruck, an electric pickup truck.
Tesla stock is represented in the ARK Innovation ETF, the ARK Next Generation Internet ETF, and the ARK Autonomous Technology and Robotics ETF (BATS:ARKQ).
In early April, Tesla posted Q1 earnings. Total revenue was $18.8 billion, an increase of 81% YOY. Adjusted diluted EPS was $3.22, compared to 93 cents the prior year. Free cash flow (FCF) was $17.5 billion.
The company recently began offering the ability to trade in used Teslas through its website, which recently added a trade-in value estimator. Wall Street is keen to see if the new service can add to Tesla’s revenue through a cycle of car upgrades.
TSLA stock has dropped almost 42% YTD yet still gained 5% over the past year. Forward P/E and P/S numbers are 65.8x and 13.7x, respectively. Wall Street’s 12-month median price forecast stands at $950.
Zoom Video Communications (ZM)
52-week range: $79.03 – $404.35
During pandemic months, the video messaging group Zoom Video Communications (NASDAQ:ZM) reached 300 million daily meeting participants worldwide. ZM stock is included in the ARK Innovation ETF and the ARK Next Generation Internet ETF.
In late May, Zoom released Q1 FY23 metrics. Total revenue was up $1.1 billion, up 12% YOY. Diluted EPS came in at 37 cents, down from 74 cents the previous year. FCF was $501.1 million.
Recently, the company introduced Zoom One, a new packaged offering that includes a variety of features such as Zoom Chat, Zoom Whiteboard, and Zoom Meetings. There is also a new multi-language captions feature, allowing users to view Zoom Meeting captions translated into different languages. Investors would like to see the growth momentum that Zoom captured in previous years to continue.
So far in 2022, ZM stock has fallen more than 41%. Shares are trading at 27.5 times forward earnings and 7.7 times sales. Finally, analysts’ 12-month median price forecast stands at $125.
On the date of publication, Tezcan Gecgil, Ph.D., is both long and short AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.