The 3 Best Cathie Wood Stocks to Buy in May 2024

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As investors, we are always aiming to reevaluate our portfolios and make additions. However, we can often get lost in the vastness of the markets when deciding on just a handful of companies. A great place to solve this dilemma is by looking at what other investors are choosing. What better place to start than looking for the best Cathie Wood stocks to buy? After all, she is one of the most famous and respected investors. If she has done the work of rigorously analyzing these companies to put into the holdings of her funds, then they could also be potential new candidates to add into our own portfolios!

Now, you might ask why not purchase shares in her different funds? Well, Cathie Wood takes a very risky approach to investing. While she has plenty of great companies in her funds, many are also extremely risky bets. Thus, I have searched deeply through her many holdings to find the best companies that balance growth with risk. As such, here are three of the best stocks to buy with the Cathie Wood seal of approval.

UiPath (PATH)

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UiPath (NYSE:PATH) is a global software company that focuses on robotic process automation. As the integration of generative AI-driven automation grows, PATH has risen as a company that can deliver substantial shareholder value. Analysts tracked by Yahoo Finance currently project a one-year price target between $27 to $32. UiPath currently makes up 5.47% of Cathie Wood’s ARK Innovation ETF (NYSEARCA:ARKK) portfolio. 

One of the biggest potential short-term growth drivers for PATH is its strategic partnership with SAP (NYSE:SAP). This collaboration is set to enable customers to automate their enterprise solutions and migrate to cloud. Which will inevitably open up new addressable markets and revenue channels for both companies. Moreover, the introduction of innovative products such as Autopilot will help solidify UiPath’s dominance in the AI space. 

Looking at their recent Q4 earnings, PATH reported an EPS of 22 cents. Additionally, they also saw an outstanding 89% non-GAAP gross margin. For investors looking to diversify their portfolio into the AI space, UiPath is definitely one of the best Cathie Wood stocks to buy. 

CRISPR Therapeutics (CRSP)

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CRISPR Therapeutics (NASDAQ:CRSP) is a company that is best known for innovating and developing the groundbreaking gene editing technology. As this company nears commercialization and moves further through the approval pipeline, investors lie in wait with high hopes. Yahoo Finance analysts currently project a one-year high price target of $199, as compared to its current price of $55.53. 

CRSP is one of Wood’s favorite healthcare technology companies and has the highest weighting in Ark as compared to any other stock in the industry. Since Ark’s mission is to invest in companies with innovative long-term outlooks, it’s no wonder the speculation of gene therapy is at the top for Wood.

Alongside all the growth speculation, CRISPR Therapeutics’s financial state has kept up with healthy numbers. Performance-wise, they recently beat the Street’s Q4 EPS estimates by $1.33 and brought its cash position to over $2.1 billion. While the company’s relative valuation is still hard to tell given its current experiential phase, this company could be a highly lucrative buy before its final FDA approvals.

Block (SQ)

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Block (NYSE:SQ) is a market leader in providing financial services such as payment platforms. The stock is up over 20% in the past year with an average one-year analyst price target of $91.78. This is far above the current price of around $70. The stock currently makes up about 6.3% of Cathie Wood’s ARKK fund and is one of her top holdings. 

Recently, the company has been focused on making its own Bitcoin (BTC-USD) mining system. More specifically, they are leveraging and working on their chip to mine Bitcoin to one day democratize the process of mining overall. This development into new recurring revenue sources will no doubt help build its competitive moat and market position.

The company is currently in a high-growth phase and EPS is expected to soar over the coming years. For example, by 2024 year-end, the company’s EPS is expected to grow at over 86% year-over-year. As such, any investor looking for explosive growth should consider this stock as a worthy addition to this portfolio.

On the date of publication, Ian Hartana and Vayun Chugh 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.

Chandler Capital is the work of Ian Hartana and Vayun Chugh.

Ian Hartana and Vayun Chugh are both self-taught investors whose work has been featured in Seeking Alpha. Their research primarily revolves around GARP stocks with a long-term investment perspective encompassing diverse sectors such as technology, energy, and healthcare.

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