3 Healthcare Stocks Cathie Wood Is Bullish On!
A market pullback always provides
an opportunity for investors to buy quality stocks at a lower
multiple. In the last few trading sessions, the equity market has
remained choppy allowing
noted investor Cathie
Wood to buy beaten-down
Here, we take a look at three
healthcare stocks that Cathie Wood’s company Ark Invest has been
purchasing hand over fist.
Shares of life-equipment
manufacturer Berkeley Lights (NASDAQ:
BLI) are down 75% from
all-time highs. Recently, it has grossly underperformed the market
due to a short-seller report that tore into the company. However,
Cathie Wood’s Ark Genomics ETF increased its position in Berkeley
Lights that is trading at a massive discount right now.
A company that manufacturers lab
equipment, Berkeley Lights is currently valued at a market cap of
$1.7 billion. These equipments are quite expensive as they can
categorize individual cells on a semiconductor plate enabling
pharma companies to inspect responses on experimental
In the first six months of 2021,
Berkeley Lights sales have risen by 54% year over year to $8.3
million and are forecast to grow by 41.5% to $91 million this year.
The top-line is expected to accelerate by 43.4% to $130.5 million
in 2022. This top-line expansion will allow the company to narrow
its loss per share from $1.39 in 2020 to $0.85 in 2022.
Analysts tracking the stock have
a 12-month average price target of $73 for Berkeley Lights which is
almost 200% higher than its current trading price.
PSNL) stock touched an
all-time high in January 2021 and has since declined by 56%. The
company operates in the cancer genomics segment and provides
sequencing and data analysis services to support the development of
cancer therapies. Personalis offers a platform called NeXT which
provides data for cancer therapy development, personalized
therapies, therapy selection as well as diagnostics.
The company serves biopharma
customers, universities, government entities, and diagnostics
companies. It derives a significant portion of sales from the MVP
(Million Veteran Program) which is a government-backed research
program to understand how genes, lifestyle, and other factors have
an impact on health.
The NeXT Platform tracks over
20,000 genes to learn what causes few immune systems to attack
tumors while the same is not possible in several other
Valued at a market cap of $950
million, Personalis is forecast to increase sales by 8.1% year over
year to $85 million in 2021 and by 14.2% to $97 million in 2022.
The stock is trading at a forward price to sales multiple of 11x
which is steep considering its growth estimates and widening
losses. Wall Street expects a loss per share to touch $1.91 next
year, up from $1.2 in 2020.
The final stock on my list is
Invitae, a company valued at a market cap of $6.63 billion. Invitae
NVTA) is a medical
genetics company that integrates genetic information with
It offers genetic tests in
several clinical areas including pediatrics, oncology, hereditary
cancer, neurology, metabolic conditions and rare diseases. The
stock is down 45% from record highs allowing Cathie Wood to buy the
Wall Street expects
to increase sales by
73.8% to $486 million in 2021 and by 40% to $680 million in 2022.
This will help the company to narrow its loss per share from $2.78
in 2020 to $2.35 in 2022.
Analysts have a 12-month average
price target of $41 which is 30% above the current trading
Historical Stock Chart
From Nov 2021 to Dec 2021
Historical Stock Chart
From Dec 2020 to Dec 2021