Cathie Wood doubles down on these 2 “strong buy” stocks

Cathie Wood doubles down on these 2 “strong buy” stocks

Few hedge managers have sparked as much controversy as Cathie Wood. The founder of Ark Invest built her brand by running against the crowd. From her early adoption of tech stocks to her outspoken political conservatism, Cathie Wood has always been something of a lightning rod.

Whether your investments and stock strategies are working or not, one thing has always been consistent. Wood never strayed from his path and continues to this day to urge investors to stay on track.

Wood has long built a reputation for carefully researching every stock choice, never hesitating to “do the homework” behind the investment, and her research has convinced her that in the long run, her choices will pay off.

With that in mind, it’s interesting to take a look at some of the stocks Wood has been buying lately. We found that she recently doubled two positions in her fund, making significant purchases in the last quarter. In fact, Wood is not the only one to praise these actions. According to the TipRanks platform – they are rated as Strong Buys by the Street analysts. Let’s take a closer look.

Global-e Online (GLBE)

The first action we will see is Global-e Online, a technology company focused on international e-commerce. The company provides an online platform for e-commerce customers who operate in the international direct-to-consumer niche and have to deal with cross-border tax and customs regulatory issues. Global-e’s platform allows you to smooth out these problems, making international online shopping easier for sellers and buyers. The company works with enterprise customers in the US, European and Asian markets and can localize its platform to accommodate dozens of languages, currencies and regulatory regimes.

In the most recent quarter, Global-e reported $87.3 million in revenue, up 52% ​​year-over-year. While this was significant growth, it was a slowdown from the 92% y/y revenue growth reported in the prior year quarter. The gross value of goods facilitated on the platform has greatly increased from $326 million a year ago to $534 million in the recent report; 64% w/w gain. Gross profits increased 77% y/y to $36.5 million in non-GAAP numbers. At the same time, the company reported a net loss of $48.8 million for the quarter, much higher than the net loss of $22.2 million in the same quarter last year.

After all that, Global-e shares are down 46% so far this year in volatile trading. Despite the losses, Cathie Wood expanded her stake in Global-e. It acquired 249,095 shares of GLBE, increasing its stake by 44% to a new total of 812,173. Wood first bought the company in the first quarter of this year, and its total shares are worth $27.79 million at current prices.

Wood is not alone in showing confidence in this name. James Faucette, 5-star analyst at Morgan Stanley, believes that Global-e has the ability to continue to deliver to investors.

“The management of GLBE is running efficiently despite a turbulent macro environment… we were encouraged to hear about improving European consumer demand trends, along with relatively constructive broader commercial demand for GLBE’s international offering. . Looking ahead, we see several levers for continued rapid growth at 23, including progressing APAC exit, landing and expanding optionality with bigger brands (e.g. Adidas/Disney) and accelerating the SHOP partnership, pushing us every increasingly to the compositional potential of platform GLBEs”, opined Faucette.

Recognizing the company’s growth potential, Faucette rates GLBE’s stock as Overweight (ie Buy), and its $51 target price suggests a 49% increase for next year. (To see the history of Faucette, Click here)

The bullish view is not atypical as all 9 recent GLBE analyst reviews are positive, giving the stock a unanimous strong buy consensus rating. The stock is selling at $34.22 and its average price target of $41.44 implies a 21% upside potential in one year. (See GLBE stock forecast on TipRanks)

Nurix Therapeutics (NRIX)

Now let’s turn to the biopharmaceutical sector, where Nurix Therapeutics, a clinical internship company, is Cathie Wood’s second recent ‘big buy’. This company is working on small-molecule therapeutics to treat a wide range of diseases – but the common factor is a pool of drug candidates using the body’s own protein degradation processes in the treatment approach.

Nurix’s DELigase platform, a proprietary research technology, is behind the company’s discovery mode and has led the company to bring four drug candidates to the stage of human clinical trials. All four are currently undergoing Phase 1 trials in the treatment of various types of cancer.

In recent months, Nurix has announced several updates to the clinical programs. More recently, the company announced that NX-1607, an immuno-oncology treatment designed as an oral treatment to treat solid tumor types, had its investigational new drug (IND) order cleared by the FDA, paving the way for further trials. clinicians.

In addition, NX-2127, a treatment for B-cell malignancies, has advanced from Phase 1a to Phase 1b. This is an expansion phase of the study, based on positive data on efficacy, safety, pharmacokinetics and pharmacodynamics reported in the previous dose escalation study.

Finally, NX-5948, also a treatment for B-cell malignancies, saw patient-first dosing in a Phase 1a/1b study. This study is a dose escalation and expansion study designed for safety and tolerability in adult patients.

Despite these ongoing tests and initial data, the company’s shares are down 46% year-to-date.

As stocks fall, Cathie Wood is ready to buy. It increased its stake in Nurix by 99% in the second quarter, acquiring 386,734 shares. Its total stake, which is worth $12.22 million, now stands at 778,725 shares.

In Stifel’s coverage, 5-star analyst Stephen Willey highlights the quality of the company’s pipeline, writing, “We believe that the incremental data releases of 2HCY22 from all four development programs currently in the clinic continue to represent a catalyst pathway of any name within our universe of coverage, and we will be particularly focused on incremental safety/efficacy data from the P1a study evaluating NX-2127 (Dual IMiD/BTK degrader) and safety/PK/biomarker data from the P1a study evaluating NX-1607 ( orally bioavailable CBL-B inhibitor).”

To that end, Willey places a buy rating on Nurix shares, and its $37 target price implies a potential gain of ~136% in one year. (To see Willey’s history, Click here)

Once again, we’re looking at a stock with a unanimous strong buy consensus rating, this one based on 10 recent analyst analyses. The average price target here at $37.89 suggests a robust 141% up from the current trading price of $15.70. (See NRIX stock forecast on TipRanks)

To find good stock trading ideas with compelling valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that brings together all of TipRanks’ stock insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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