Imagine if you stopped watching movies before they finished. Then Rocky Balboa would never win a boxing match, the Empire would defeat the rebels in Star Wars, and Snow White would never wake up.
Some investors might be willing to write off Cathie Wood. Most of the ARK Invest funds (ETFs) are far from their highs, and some of Wood’s favorite stocks have done catastrophically in the past few months. However, the story is far from over.
Like Rocky, Luke Skywalker, and Snow White, some of the top stocks in ARK Invest ETFs may be temporarily on the ground, but still have a bright future ahead of them. Others are doing well with a good chance their momentum will continue. Here are three virtually unstoppable stocks of Cathie Wood to buy right now.
1. Teladoc Health
Teladoc Health is nearly 50% below its high earlier this year. Wood doesn’t appear to be concerned about the decline, however – she has continued to buy shares in the healthcare stock for three of the ARK Invest ETFs over the past few weeks.
That optimism should pay off in the long run. Teladoc has tremendous growth opportunity in the US telemedicine market. The company has almost as many potential users with existing customers as it has active members. And there are many more Americans who don’t currently use telemedicine services than those who do.
However, the possibilities of Teladoc are not limited to telemedicine or the USA. With the acquisition of Livongo Health last year, Teladoc received a rapidly growing digital health platform for managing chronic diseases. Teladoc also has tremendous growth prospects in international markets. The company recently signed a partnership with Generali Hong Kong that will make its virtual care products available to members of the insurer across Asia.
Sure, Teladoc issued a forecast in its Q1 report that indicated slower growth. However, a slowdown is expected after growth fueled by the COVID-19 pandemic. Virtual nursing should see increasing demand for the next decade and beyond, and Teladoc is the company best positioned to win in this market.
Square took investors on a roller coaster ride this year. Fintech stock has fallen nearly 20% since its February high. Like Teladoc, however, Square has remained one of Wood’s favorites as it nabbed additional stocks for three of the ARK Invest ETFs in May.
The Cash App continues to deliver excellent growth. Cash app gross profit increased 171% year over year to $ 495 million for the first quarter. Square has expanded its cash app ecosystem to include the popular Cash Card credit card, support for buying and selling Bitcoin, and the ability to send Bitcoin to friends and family.
Don’t forget Square’s seller ecosystem though. It’s also growing rapidly after navigating turbulent waters with the pandemic. The company is looking for ways to integrate its seller and cash app ecosystem, which should drive growth even further. In the first quarter, for example, the customer loyalty program Square Loyalty was integrated into the Cash App.
Square is also expanding into full-fledged banking services. Bloomberg recently reported that the company plans to introduce checking and savings accounts for its customers. Expect Square to find even more ways to generate growth in the future.
Not all of Wood’s top stocks fell from their high chairs in 2021. Alphabet’s shares are up nearly 40% year-to-date to hit a record high. Despite the fact that the ARK Autonomous Tech and Robotics ETF has sold some shares of Alphabet in the past few weeks, the tech giant remains firmly in the ETF’s top 5 positions.
Alphabet makes most of its money selling ads on Google, YouTube, and its other platforms. This core business is absolutely rocking at the moment. But the company also has other growth drivers.
Google Cloud continues to enjoy strong momentum. Above all, Alphabet’s expertise in artificial intelligence and machine learning helps to offer its cloud customers added value. While the other initiatives are not yet contributing significantly to Alphabet’s bottom line, this may change in the future. In particular, the self-driving car division Waymo could make a major contribution over the next ten years.
What about the possibility that antitrust authorities could break up Alphabet? Maybe that will happen. However, the sum of the parts could be worth even more than Alphabet’s current market capitalization. Alphabet should still be an unstoppable winner for investors no matter what regulators decide.
The article 3 Unstoppable Cathie Wood Shares That You Can Buy Now first appeared on The Motley Fool.
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This article represents the author’s opinion, which may differ from the “official” recommendation position of The Motley Fool Premium Consulting Service. Challenging one investment thesis – even your own – helps us all think critically about investing and make decisions that will help us get smarter, happier, and richer. Suzanne Frey, an executive at Alphabet, is a member of The Motley’s board of directors Fool.
Keith Speights has no position in any of the stocks mentioned. It has been translated so that our German readers can take part in the discussion.
Keith Speights owns shares of Alphabet (A shares), Square, and Teladoc Health. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Bitcoin, Square, and Teladoc Health.
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