5 Cathie Wood Stocks Analysts Expect to Rally

Every time Cathie Wood makes a move in the stock market, it’s as if she’s the belle of the market’s ball with all eyes on her. This maverick fund manager, celebrated for her audacious bets on innovative tech companies, has amassed both a loyal fan base and a cadre of skeptics. But those seeking to emulate Wood’s growth-orientated investment approach should gird themselves for turbulence; amid her standout triumphs, such as Nvidia (NVDA) and Tesla (TSLA), await flops like Unity Software (U) and Invita (NVTA). Her flagship Ark Innovation ETF (ARKK), tethered to the caprice of momentum-driven growth stocks, predictably experiences wild fluctuations. While ARKK has trailed behind the returns of the broader Nasdaq-100 Index ($IUXX) over the past year, the ETF’s peaks and troughs during this period have been notably more wild.

Despite Wall Street’s lukewarm reception to some of Wood’s signature holdings such as Coinbase (COIN) and Robinhood Markets (HOOD), there are still investment potentials to be found in her flagship ARKK fund as analysts foresee significant upsides for certain growth stocks. Let’s delve into some of them.

Archer Aviation Stock

Archer Aviation (ACHR), a San Jose-based outfit established in 2018, is dedicated to crafting electric vertical takeoff and landing (eVTOL) aircraft tailored for urban air taxi services – essentially electric-powered aerial vehicles designed to ferry passengers through city skies, potentially offering a greener, speedier alternative to conventional ground transportation.

Archer Aviation stock has seen a robust 77% surge in the past year, boasting a market cap of $1.5 billion.

Analysts have bestowed the stock with a “Strong Buy” endorsement, setting a mean target price of $9.36, pointing to a potential upside of around 89.8% from its current valuation. Of the 7 analysts scrutinizing ACHR, 5 advocate a “Strong Buy”, 1 favors a “Moderate Buy”, and 1 recommends a “Hold”.

Exact Sciences Stock

Operating since 1995, Exact Sciences (EXAS) is a molecular diagnostics enterprise specializing in the development and distribution of non-invasive tests for the early detection of cancer, with Cologuard, a non-invasive DNA test targeting colorectal cancer (CRC), as its flagship offering. The market cap stands just below $12 billion, with a marginal 0.7% decline in Exact Sciences stock over the past year.

The stock continues to receive upbeat reviews, sporting an average “Strong Buy” rating. Analysts have pegged its mean target price at $98.18, hinting at a prospective 49% upside from its current value. Of the 19 analysts assessing the stock, 16 advocate a “Strong Buy” while 3 suggest a “Hold”.

Trade Desk Stock

Trade Desk (TTD) is a digital advertising enterprise focusing on real-time programmatic marketing automation technologies, catering to personalized digital content delivery to users. Founded in 2009, the Ventura, Calif.-based company has 225 partners globally and a workforce exceeding 2,800 across 25 locations worldwide. The company has a market cap of $31.8 billion, with a strong 48.3% rise in its stock over the past year.

Overall, analysts express optimism about TTD, furnishing a resounding “Strong Buy” rating. The mean target price is estimated at $81.61, suggesting a 24.5% potential upswing from current levels. Among the 27 analysts covering TTD, 20 propound a “Strong Buy”, 2 advocate a “Moderate Buy”, 4 recommend a “Hold”, and 1 casts a “Strong Sell” vote.

Block Stock

Formerly known as Square, Block (SQ) is a financial services company offering payment processing, point-of-sale, and other business services. Founded in 2009 by Jack Dorsey, the company boasts a market cap of about $40 billion and has recorded an 8.5% downturn over the past year.

Fintech Stocks: Analysts Bullish on Future Prospects

1. Square Stock

Analysts remain optimistic about the fintech stock, giving it an overall rating of “Moderate Buy” with a mean target price of $78.82. This denotes an upside potential of about 21.5% from current levels. Out of 38 analysts covering SQ, 23 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, 11 have a “Hold” rating, and 1 has a “Strong Sell” rating.

2. DraftKings Stock

Founded in 2012, Boston-based DraftKings (DKNG) has quickly emerged as a preeminent player in the online sports betting industry, with a 32% market share as of May 2023 – second only to FanDuel. Commanding a market cap of $32.25 billion, DraftKings allows betting across the MLB, NHL, NFL, NBA, Premier League, and UEFA Champions League, among others. DraftKings stock has been on a tear over the past year, rising 175%.

Despite the steep rally, analysts continue to remain upbeat about DKNG, deeming it a “Strong Buy” with a mean target price of $42. This denotes an upside potential of 13.3% from current levels. Out of 26 analysts covering the stock, 21 have a “Strong Buy” rating, 2 have a “Moderate Buy” rating, and 3 have a “Hold” rating.