Most top investors know the name Cathie Wood. She is the founder of ARK Invest and her strategy of investing in top technology companies has caused her to be a closely followed money manager. Her accomplishment: All of her funds have more than doubled in value.
For investors seeking to profit from her high-tech stock picks, the following two stocks will make you feel safe in the knowledge that the world’s hottest investors is right there with you. And what’s more, both you and Cathie Wood are getting a huge discount when you buy these bargain priced stocks.
1. CRISPR Therapeutics
CRISPR Therapeutics uses the CRISPR-Cas9 gene-editing process to create transformative treatments. Though the firm has been progressing in its programs, the stock has decreased almost 40% from its peak in mid-January. CRISPR is creating treatments in three areas. Company leaders expect results in these programs to push its market capitalization from around $10 billion today to $25 billion in the short term.
First, CRISPR Therapeutics and their partner Vertex Pharmaceuticals (VRTX) publicly announced that in December their CTX001 treatment had essentially cured 10 patients of two blood disorders. Company leaders expect to complete enrolling participants in this study later this year.
Second are immuno-oncology solutions that use the body’s immune system to combat cancer. All three of their drugs in this niche use transplanted gene-edited cells from a healthy person. Each is scheduled for a rollout this year.
Finally, the firm is partnering with ViaCyte in its first entry into the regenerative medicine market. The pair are starting a trial combining the stem cell technology of ViaCyte with CRISPR’s gene-editing knowledge. The result could be a new process to treat diabetes. Overall, these scientific pursuits should have investors excited about the stock and the company’s future.
2. Proto Labs
Manufacturing requires a lot of money. The molds and machines needed to create one new design are the same whether you are making one or thousands. Because of this, innovations in manufacturing always focus on mass-producing parts, versus quickly changing new designs.
Proto Labs has changed that model, building a business around giving custom parts at unprecedented speeds. The platform had over 18,000 product designers in 2020.
Their approach is to use 3D printing, which is both cheaper and faster. The company was able to create new components for diagnostic equipment with top turnaround during the covid-19 pandemic.
While Proto Labs is doing well, its growth has not been so great. Management reported $434 million in revenue for 2020, which was 6% under what 2019’s number was. That wasn’t all due to the pandemic, however. Their revenue in 2019 was just 3% higher than 2018. But new CEO, Rob Bodor, is expecting a new user-friendly interface and an expansion of its services to kick-start sales.
Proto Labs also recently bought 3D Hubs, which gives them the ability to find manufacturing partners for projects it cannot complete, as well as give more lead times and pricing for customers with certain needs.
Proto Labs stock increased after the purchase, but unfortunately fell almost 50% from the peak it reached in late January. Company leaders didn’t do much to help, predicting that conditions in the first quarter would be like 2020 and 2019.
While it’s understandable that investors would be restless — this stock has been being bought mostly on potential for a while now. And for investors with long-term investing in mind, taking an investment in Proto Labs might one day pay big profits. At least, that’s what Cathie Wood believes.
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