Unlocking the Potential: 3 Cathie Wood Stocks Waiting to Spring Unlocking the Potential: 3 Cathie Wood Stocks Waiting to Spring

By: Alex Freidmen

Cathie Wood stocks may not have as many fans today as when Wood’s Ark Invest funds were putting the markets to absolute shame back in 2020. Undoubtedly, Wood may be a seasoned investor with intriguing viewpoints on disruptive innovation and the markets as a whole.

There’s no arguing that Ark Investment Management found itself in the right place at the right time in 2020. The Federal Reserve slashed rates while many people were couped up at home during lockdown, thinking Covid-19 would keep us homebound for the long haul. But as the economy reopened and investors anticipated higher rates, disruptive innovation went out of style about as quickly as it came into fashion.

Until now, the Cathie Wood stocks haven’t gained much ground since the market bottomed out around a year ago. But what about once investors get pumped up about the rate cuts to come?

Could we be in for 2020-21 all over again? It’s tough to tell. Either way, the following Cathie Wood stocks seem too cheap to pass up, given the potential catalysts ahead.

Coinbase (COIN)

Coinbase (NASDAQ:COIN) is the new captain of the flagship ARK Innovation Fund (NYSEARCA:ARKK) after doing more than its fair share of the heavy lifting in the past year.

A stack of bitcoin tokens ahead of the Coinbase logo.

Source: Useacoin / Shutterstock.com

The popular crypto exchange platform has really been enjoying higher Bitcoin (BTC-USD) and renewed interest in other crypto assets. At writing, COIN stock is up a jarring 345% in the past year. That explosive momentum tops even the great Nvidia (NASDAQ:NVDA) for performance over the past year.

As the page turns on the first half of 2024, the blistering performance could certainly reverse course. A cooldown period is definitely needed after such a scorching run. Fortunately, I don’t view COIN stock as insanely overvalued at 36.3 times forward price-to-earnings (P/E). It’s not even at all-time highs yet!

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Coinbase will likely over earn in “crypto spring and summer,” and underearn in “crypto winter.” However, I continue to view COIN stock as a superior long-term investment to Bitcoin or any other cryptocurrency itself — especially as crypto summer stands to heat up in time for real summer.

Further, Coinbase isn’t just a beneficiary of increased crypto trading; the company is building the blockchain infrastructure of the future. Given this, I’d argue that Coinbase should garner interest in the crypto asset class, not the other way around.

Roku (ROKU)

ROKU Stock Will Continue Benefitting From the TCL Partnership

Source: Michael Vi / Shutterstock.com

Roku (NASDAQ:ROKU) remains a fairly sizeable holding in the flagship ARKK ETF, even after dragging in recent quarters. Over the past two years, ROKU is down more than 37%. At this juncture, the streaming underdog seems destined to stay in the doghouse for longer, especially as the firm struggles to push into sustained profitability.

While Roku’s financials may not be glimmering, perhaps most investors aren’t viewing the firm in the same light as Cathie Wood. The company behind popular streaming sticks could benefit greatly as interest rates begin to fall. This would reduce the weight of debts and trim borrowing costs, allowing Roku to spend more to regain an edge in the streaming world.

As streamers look to live sports as an arena to attract viewers, I think Roku has a chance to swing for a grand slam. Just last month, Roku began streaming MLB matches exclusively on its platform via The Roku Channel for free. Indeed, offering free sports will not only help fire back at streaming rivals, it could deliver a gut-punch to cable TV while it’s already on the ropes.

I think free sports will be a home run among viewers. As more consumers cut costs, perhaps it makes more sense to ditch subscriptions and tune into the Roku Channel, especially if you’re a casual baseball fan.

Teledoc (TDOC)


The Resilience and Reinvention of Teledoc in the Telemedicine Industry

A New Chapter for Teledoc

Gone are the days where Teledoc (NASDAQ: TDOC) was simply seen as a fleeting pandemic frenzy. Despite Ark Invest trimming its stake by 399,982 shares recently, the steadfast commitment of Cathie Wood and team to the company persists, demonstrating unwavering faith in the potential of this telemedicine giant.

Navigating Uncertainty

The departure of CEO Jason Gorevic has cast a shadow over Teledoc’s immediate future. The ongoing search for a new leader has ushered in a period of uncertainty, stirring speculation about the organizational outlook during a tumultuous phase for the company.

A Diamond in the Rough

Even as the era of virtual medical consultations gradually recedes, Teledoc stands out as an undervalued leader in the telemedicine arena. With a modest price-to-sales (P/S) ratio of 0.7 and price-to-book (P/B) ratio of 0.82, Teledoc shares present an enticing value proposition, akin to a hidden gem waiting to be unearthed.

Forging Strategic Partnerships

Teledoc’s collaboration with tech titan Amazon (NASDAQ: AMZN) to integrate its services into Alexa heralds a new chapter of innovation and expansion. The potential deepening of ties with this tech-savvy giant could potentially breathe new life into TDOC stock, leading it towards a path of resurgence and growth.

Disclosure: The author, Joey Frenette, holds shares of AMZN. The opinions expressed in this article reflect the views of the author and are in accordance with the guidelines of InvestorPlace.com.