Not many hedge managers have sparked as much controversy as Cathie Wood. The founder of Ark Invest has built her brand by running against the crowd. From her early embrace of tech stocks to her outspoken political conservatism, Cathie Wood has always been something of a lightning rod.
Whether her investments and stock strategies evolve or not, one thing has always been consistent. Wood has never strayed from her path and continues to this day to urge investors to stay on the path.
Wood has long built a reputation for carefully researching every stock pick, never shying away from “doing the work” behind the investment, and her research has convinced her that, in the long run, her picks will pay off.
With that in mind, it’s interesting to take a look at some of the stocks Wood has been buying lately. We found that she recently doubled down on two positions in her fund, making significant purchases in the last quarter. In fact, Wood isn’t the only one singing the praises of these stocks. According to the TipRanks platform – they are rated as Strong Buys by Street analysts. Let’s take a closer look.
Global-e Online (GLBE)
The first stock we’ll look at is Global-e Online, a technology company focused on international e-commerce. The company provides an online platform to e-commerce clients operating in the international direct-to-consumer niche and dealing with cross-border tax and customs regulatory issues. Global-e’s platform makes it possible to smooth out these problems, making international online shopping easier for both sellers and buyers. The company works with enterprise customers in the US, European and Asian markets and can localize its platform to accommodate dozens of languages, currencies and regulatory regimes.
In the most recent quarter, Global-e reported $87.3 million at the top, up 52% year-over-year. While that was significant growth, it was a slowdown from the 92% year-over-year revenue growth reported last quarter. The gross merchandise value of goods facilitated on the platform increased greatly, rising from $326 million a year ago to $534 million in the latest report. annual profit of 64%. Gross profit rose 77% year over year to $36.5 million in non-GAAP numbers. At the same time, the company reported a net loss of $48.8 million for the quarter, much larger than a net loss of $22.2 million in the previous quarter.
After all that, Global-e shares are down 46% so far this year in choppy trading. Despite the losses, Cathie Wood has expanded her stake in Global-e. It acquired 249,095 shares of GLBE, expanding its holding by 44% to a new total of 812,173. Wood first bought into the company in the first quarter of this year, and her total holdings are worth $27.79 million at current prices.
Wood isn’t the only one showing confidence in this name. James Faucette, a 5-star analyst at Morgan Stanley, believes Global-e has the potential to continue to deliver for investors.
“GLBE management is running effectively despite the turbulent macroeconomic environment… we were encouraged to hear of improving European consumer demand trends, along with relatively buoyant broader merchant demand for GLBE’s cross-border supply. Looking ahead, we see many drivers for continued rapid growth through ’23, including progress in APAC outbound, landing and expanding optionality with larger brands (e.g. Adidas/Disney) and accelerating SHOP collaboration, pushing us incrementally to raise the potential of GLBE. platform,” Faucette said.
Recognizing the company’s potential growth, Faucette rates GLBE shares an Overweight (i.e., Buy), and the $51 price target suggests a 49% upside over the next year. (To follow Faucette’s history, Click here)
The bullish rating is no more extreme on this one, as 9 of GLBE’s recent analyst reviews are positive, giving the stock a unanimous strong buy consensus. The stock is trading at $34.22 and its average target price of $41.44 suggests a 21% upside potential for one year. (See GLBE stock forecast on TipRanks)
Nurix Therapeutics (NRIX)
Now let’s turn to biopharma, where Nurix Therapeutics, a clinical-stage company, is Cathie Wood’s second recent “big buy.” This company is working on small molecule therapeutic agents to treat a wide range of conditions – but the common factor is a set of drug candidates that use the body’s own protein degradation processes in the therapeutic approach.
Nurix’s DELigase platform, a proprietary research technology, underpins the company’s discovery approach and has led the company to bring four drug candidates to the human clinical trial stage. All four are currently undergoing Phase 1 trials for the treatment of several cancers.
In recent months, Nurix has announced several updates to its clinical programs. Most recently, the company announced that NX-1607, an immuno-oncology therapy designed as an oral dose therapy for the treatment of solid tumor types, has received an Investigational New Drug (IND) application from the FDA, smoothing the way for additional clinical trials.
In addition, NX-2127, a treatment for B-cell malignancies, has progressed from Phase 1a to Phase 1b. This is an extension phase of the trial, which is based on positive data on efficacy, safety, pharmacokinetics and pharmacodynamics reported from the previous dose-escalation study.
Finally, NX-5948, also a treatment for B-cell malignancies, has seen its first patient dose in a Phase 1a/1b study. This trial is a dose-escalation and extension study designed for safety and tolerability in adult patients.
Despite these ongoing tests and early data, the company’s stock is down 46% year-to-date.
As the stock falls, Cathie Wood is ready to buy. It increased its holding in Nurix by 99% in the second quarter, gaining 386,734 shares. Its total holding, worth $12.22 million, now reaches 778,725 shares.
In coverage for Stifel, 5-star analyst Stephen Willey notes the quality of the company’s pipeline, writing: “We believe the 2HCY22 incremental data disclosures from all four development programs currently in the clinic continue to represent one of the most actively, we pretty much name catalyst routes of any name in the coverage universe and will be particularly focused on incremental safety/efficacy data from the P1a trial evaluating NX-2127 (dual IMiD/BTK degrader) and safety/PK/biomarker data from the P1a trial evaluating of NX-1607 (orally bioavailable CBL-B inhibitor).
To that end, Willey places a Buy rating on Nurix shares, and the $37 price target implies a potential one-year gain of ~136%. (To follow Willey’s history, Click here)
Once again, we’re looking at a stock with a strong buy consensus consensus, based on 10 recent analyst reviews. The average price target here, at $37.89, suggests a strong upside of 141% from the current trading price of $15.70. (See NRIX stock forecast on TipRanks)
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Denial of responsibility: The views expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.