3 Cathie Wood Stocks Making a Comeback Cathie's top picks could be a very profitable decision if we continue to see momentum in high-growth names to finish the year. Let's take a deeper loo...
By Sean Sechler
This story originally appeared on MarketBeat
Even though Cathie Wood's ARK Invest ETFs haven't been top performers this year, investors should still be impressed by her keen ability for picking winning stocks over the long term. Wood tends to focus on buying innovative high-growth names on dips, which has been a strategy that is hit-or-miss in 2021. However, as sentiment is quickly shifting back towards favoring growth after a wicked selloff to start the year, several of Cathie Wood's favorite buys are starting to make a comeback.
That's a big reason why investors should start paying attention to quality names in the ARK Invest universe that are poised for strong performance during the remainder of the year. We know how quickly growth stocks can move, both to the upside and the downside, and adding exposure to some of Cathie's top picks could be a very profitable decision if we continue to see momentum in high-growth names to finish the year. Let's take a deeper look at 3 Cathie Wood stocks making a comeback.
Tesla (NASDAQ:TSLA)
This is the top holding in Ms. Woods' most popular ETF, the ARK Innovation ETF, and the top dog in the electric vehicles sector. While Tesla stock has been dormant for the majority of the year, investors should note that the stock recently broke out of its downtrend and reclaimed all of the major moving averages, which could be a sign of good things to come. Tesla manufactures and sells high-performance electric vehicles and components as well as various renewable energy products, which is certainly attractive given the worldwide focus on clean energy.
The stock has likely received a boost from the recent bounce in Bitcoin, as Tesla has $1.5 billion of the cryptocurrency on its balance sheet. There's also the potential for a strong Q2 deliveries number next week to look out for that could be an additional catalyst for the stock. Tesla's industry-leading brand and technology make it a great option in the EV sector, and expansion into the Chinese market should be another big positive for the stock over the long term.
3D Systems Corp (NYSE:DDD)
Companies involved in 3D printing technology certainly offer intriguing long-term growth prospects, which is likely the reason Cathie Wood created The 3D Printing ETF for ARK. The top holding in that ETF is 3D Systems Corp, which is a company that is engaged in providing 3D printing and digital manufacturing solutions. The stock had an epic run to start the year but gave back almost all of its gains following its parabolic move up. However, 3D Systems stock is starting to act better and has rallied over 29% during the last week, which means it should be on your radar going forward.
There are plenty of industries that can benefit from this type of technology, and that includes healthcare and industrial applications. For example, 3D Systems recently announced a partnership with regenerative medicine company Collplant (NASDAQ:CLGN) to create 3D bioprinted solutions that simplify and improve breast reconstruction procedures involving implants. The partnership could result in safer implants for women diagnosed with breast cancer who need certain areas of cancerous tissue removed. This is just a glimpse into the exciting capabilities of 3D printing technology and could be a sign of big things to come from this Cathie Wood favorite.
Twilio (NYSE:TWLO)
Another high-quality Cathie Wood favorite that has been showing strength lately is Twilio, a company that operates a cloud platform that enables developers to add real-time communications and messaging to their cloud apps and games. Software stocks have been the flavor of the month in June, and it appears that the best quality names are making the most constructive moves. Twilio is certainly one of the most intriguing companies in the software growth space, as the ability to add things like voice, chat, and video to applications is invaluable in today's tech-driven world.
Investors should be attracted to Twilio's business model that is based on usage volume, which means that the company earns recurring revenue and is able to take advantage of its customers' applications that become huge hits. Another positive to note about Twilio is that the company has posted a non-GAAP profit for five straight quarters and has a very strong management team including former executives from Salesforce and Amazon to keep the company heading in the right direction over the long term. The stock has rallied 19% over the last month and could be a smart buy after it consolidates for a bit.
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