Cathie Wood’s exchange-traded funds (ETFs) received a breath of fresh air this week. The ARK Innovation ETF (NYSEMKT:ARKK) ended the period up over 12%.
Wood did admit that she believes the U.S. is currently in a recession. However, the ETF manager also believes that growth stocks have bottomed, while inflation has peaked. She said:
Typically, growth stocks will outperform as we move towards the end of a bear market and the end of a recession because they are the new leadership. It looks like we bottomed on an intraday basis based on our flagship strategy on May 12.
The end of a bear market would prove advantageous for ARKK, as the ETF is down 48% year to date (YTD). With that in mind, let’s take a look at the top stocks Wood purchased this week.
5 Top Stocks Cathie Wood Bought This Week
1. Teladoc (TDOC)
Similar to last week, Wood has continued her purchases of Teladoc (NYSE:TDOC). On Aug. 2, she purchased 77,799 shares of TDOC through four of her ETFs. After the purchases, Ark Invest now owns a total of 18.57 million shares, making it the fifth-largest position among all Ark ETFs. Furthermore, Cathie’s Ark reports that Ark Invest owns 11.48% of all TDOC shares outstanding.
The purchase comes after the telehealth provider reported earnings. Most notable was a $3 billion impairment charge that caused an earnings per share loss of $19.22. The impairment charge was attributed to the company’s $18.5 billion purchase of Livongo in late 2020.
Still, rising monkeypox cases across the nation may act as a positive catalyst for Teladoc. In the event of a lockdown or a recommendation to stay indoors, TDOC should see significant gains.
2. Markforged (MKFG)
From Aug. 1 to Aug. 4, Wood purchased 417,345 shares of Markforged (NYSE:MKFG) through two of her ETFs. These purchases may be seen as a bet toward positive earnings, as the company will report financial results on Aug. 11. Analysts are expecting revenue of $22.46 million and an EPS loss of 9 cents. The revenue estimate would imply year-over-year (YOY) growth of 10%.
Markforged is a 3D printing and materials company. The company also offers software to enhance and improve the 3D printing process. In July, Markforged announced that it had acquired Digital Metal. Digital owns a binder jetting solution, which will improve Markforged’s “capabilities into high-throughput production of metal additive parts.” In addition, the acquisition will help MKFG scale its additive manufacturing technology.
3. Pacific Biosciences (PACB)
Pacific Biosciences (NASDAQ:PACB) engages in the development and sales of a genetic analysis platform. On Aug. 4, ARKK purchased 113,483 shares of PACB, while the ARK Genomic Revolution ETF (BATS:ARKG) purchased 98,284 shares. The purchases came one day after Pacific released its Q2 earnings. Since then, shares of PACB are up over 10%, and finished the week higher by over 30%.
The company reported revenue of $35.5 million, up 16% YOY. Of the revenue, $15.6 million was attributable to instrument sales, $14.6 million to consumables, and $5.3 to services and other revenue.
Meanwhile, Pacific delivered 36 of its Sequel II/IIe systems, compared with 38 deliveries a year ago. Still, profitability remains an issue, as the company reported a net loss of $71.4 million, up from $41 million YOY. However, investors were clearly unfazed as evidenced by the following price action.
4. EXACT Sciences (EXAS)
On Aug. 3-4, ARKK purchased 48,434 shares of EXACT Sciences (NASDAQ:EXAS). After the purchases, EXAS is now ARKG’s largest portfolio holding. This came after the company reported its earnings on Aug. 2. As a result, investors can assume that Wood was impressed by the financial results. Upon earnings, shares of EXAS fell lower but have since recovered some of its losses.
The molecular diagnostics company reported revenue of $522 million, beating the consensus analyst revenue estimate of below $500 million. Sales of the Cologuard test for colon cancer grew by about 30% and was the major contributor to revenue. However, EXAS fell lower after the company lowered its full-year revenue guidance. Revenue is now expected to be between $1.98 billion and $2.02 billion. The previous guidance called for revenue between $1.98 billion and $2.03 billion. Precision oncology guidance was also lowered, while guidance for screening revenue remained constant.
5. Personalis (PSNL)
Similar to her PACB purchase, Wood purchased shares of Personalis (NASDAQ:PSNL) before the company reported earnings on Aug. 3 after the market close. She purchased 20,386 shares on the day of earnings and 28,048 shares the following day. Since the close on Aug. 3, shares of PSNL are up over 10%.
Personalis supports the development of personalized cancer vaccines through genomic sequencing and analysis. For Q2, the company posted revenue of $18.24 million, down from $21.67 million a year ago. Still, revenue beat the Zacks consensus estimate by over 20%. On top of that, EPS came in at a loss of 60 cents, which beat the estimate of a loss of 63 cents as well. In the past four quarters, Personalis has exceeded EPS estimates two times.
Shares of PSNL closed the day higher by over 10%.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.