Cathie Wood is well-known in the investment world as the face of ARK Invest, the firm she founded in 2014. ARK itself stands for Active Research Knowledge. She became something of a cult figure during the speculative tech boom that thrived throughout 2021. Her representative ARK Innovation ETF (NYSEARCA:ARKK) was a particular standout at the time, rising as much as 10% in a single day.
2022 hasn’t been as kind. ARKK stock has lost more than 50% of its value year-to-date (YTD). The value of the assets under management (AUM) at ARK Investment Management has fallen from nearly $55 billion in mid-2021 to under $17 billion currently.
But the losses in her tech-heavy portfolio may have slowed, and there are certain to be winners among them. Let’s look at some Cathie Wood stocks to consider buying on the dip.
Cathie Wood Stocks: CRISPR Therapeutics (CRSP)
CRISPR Therapeutics (NASDAQ:CRSP) stock is a truly interesting investment. On the one hand, the company is noted as a leading firm in the gene editing revolution. The company’s CRISPR/Cas9 platform allows precise editing of genomic DNA. It was the first of its kind and it promises to lead to the development of new paradigms in medicine and disease treatment. On the other hand, its fundamentals are turbulent and its efforts may end up benefiting other firms commercially.
Additionally, the company has established partnerships with leading pharmaceutical firms including Vertex (NASDAQ:VRTX) and Bayer AG (OTCMKTS:BAYRY) in order to develop commercially viable pharmaceuticals.
Overall, it is really a matter of playing the long game with CRSP stock. It could be on the cusp of delivering a commercially viable, licensable product or continue to be volatile. For example, the firm reported $158,000 of revenues in the most recent quarter. A year prior it reported more than $900 million.
Those who buy the dip now could hold the keys to a revolutionary stock that hasn’t quite found its commercial stride, but has great technology.
Regeneron Pharmaceuticals (REGN)
Regeneron Pharmaceuticals (NASDAQ:REGN) is down slightly, having gone from $624 to $614. It is down following second-quarter earnings that topped forecasts and brought share prices to $690 in late May. So, it would seem that Regeneron’s Q2 earnings report, with its 44% decrease in revenues, makes it a stock to miss.
However, the decline is entirely explicable due to its REGEN-COV drug, which generated sales of $2.6 billion in the U.S. Q2 2021. It sold none this year, as its delivery contract to the U.S. government ended Dec. 31, 2021. Negate the effects of those lost sales, and Regeneron’s revenues actually increased this quarter.
The firm has a strong pipeline of drugs that investors might consider giving the benefit of the doubt. The company has a track record of beating the market over the last decade.
Cathie Wood Stocks: UiPath (PATH)
UiPath (NYSE:PATH) stock is a stereotypical tech stock that fairly represents 2022 markets in many ways.
It has lost more than half of its market capitalization this year. That’s largely in line with the tech sector, as it hemorrhaged money during the first half of the year. The company also announced a restructuring back in June that, in plain terms, was simply a 5% cut to its employee base. That too is largely in line with the overall tech trajectory as quantitative tightening forces the sector to focus on profitability and leaner operations.
But the enterprise automation firm is also somewhat atypical at the same time. Rather than becoming an acquisition target, as tech firms often do when valuations fall, UiPath instead made an acquisition of AI startup Re:infer. UiPath hopes Re:infer’s natural language processing capabilities will lead to lower communications costs moving forward.
For now, UiPath is doing well on the revenue front with $245.1 million in sales, up 32% year-over-year (YOY).
Markforged (NYSE:MKFG) is a 3D printing firm based in Watertown, Massachusetts. The company is performing really well and recently hit its stride, so to speak.
From a fundamental perspective, Markforged is doing exactly what it should. Revenues increased 19% in the quarter, hitting $24.2 million. And although margins decreased from 58% to 53% in the quarter, Markforged recorded a net profit.
The $4.1 million net profit was a strong result given current macroeconomic headwinds. A year earlier the firm reported an $11.1 million net loss, so Markforged deserves kudos.
Its stock trades for less than $3, meaning it’s well within penny stock territory. But the company expects revenue for the full year to range between $100 million and $115 million.
Cathie Wood Stocks: Tesla (TSLA)
Cathie Wood is an ardent fan of and investor in Tesla (NASDAQ:TSLA) stock. And there’s plenty of reason to believe in Tesla currently.
Despite the fact Tesla revenues declined on a sequential basis between Q1 and Q2 this year, all is not lost. Revenues still increased a very strong 43% between Q2 2021 and Q2 2022. Tesla isn’t going anywhere as it still sold $14.6 billion of its EVs in the most recent quarter. Net income figures increased by 98% as measured using GAAP standards.
That said, Tesla’s revenues were higher in each of the last two quarters, and that fact has to be acknowledged. Tesla sold fewer vehicles this quarter than it did in either of those two previous quarters.
So, why should investors be optimistic? YOY figures are still strong for one. Those figures aside, President Joe Biden’s Inflation Reduction Act will help as well. It will provide tax credits for EVs that will benefit Tesla’s cheaper models and should spike demand.
Stratasys (NASDAQ:SSYS) is a company that sells 3D printers, as does Markforged. Its stock is roughly 27% undervalued based on consensus analyst projections and it is rated as being overweight. Given that Stratasys has beaten earnings estimates in the last four quarters, there’s a reasonable case to be made for buying it on the dip.
The company’s 3D printers have end applications across multiple industries, including automobiles, aerospace, medical, consumer products and transportation among other industries.
According to Stratsys’ most recent earnings results, revenue increased 13.3% in the quarter, reaching $115.7 million. That led to a net loss of $24.4 million. That loss was greater than the $20.2 million net loss the firm reported a year earlier.
But that should be taken with a grain of salt, given SSYS stock still outperformed earnings-per-share, or EPS, expectations in the quarter.
Cathie Wood Stocks: Unity Software (U)
Unity Software (NYSE:U) stock has two current catalysts that could affect its price soon. First, AppLovin (NASDAQ:APP) offered to acquire Unity Software for $17.5 billion, but Unity Software’s board quickly shot the offer down.
Instead, the board recommends the company forge ahead with its deal announced last month to buy IronSource (NYSE:IS). The IronSource platform helps scale and publish mobile games and apps while Unity Software is a noted real-time 3D game content name.
Here’s what’s interesting: AppLovin’s deal valued U stock at $58.85 per share, but was ultimately not recommended. The ironSource deal should make Unity stronger, theoretically raising its share price. That means Unity Software likely assumes its shares are worth much more than $58.85, and there’s strong upside because of that.
On the date of publication, Alex Sirois did not have (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.