3 Stocks Cathie Wood Is Buying That Should Be on Your List Too

Cathie Wood’s investments continue to focus on innovation, but the popular investor hasn’t forgotten to find a great deal as well!

| More on:
Workers use a microscope to do medical research in a modern laboratory.

Source: Getty Images

Many Canadian investors are likely already familiar with Warren Buffett. However, you may not be as familiar with Cathie Wood. Cathie Wood is also one of the most popular investment strategists in the United States. And it’s why we turn our attention to Cathie Wood and her ARK Invest company.

Today, we’re going to look at the companies that Cathie Wood has been buying these days. Ones that show signs of strong innovation, which Cathie Wood focuses on, and why even Canadian investors can get in on this action.

CRISPR

First up we have CRISPR Therapeutics (NASDAQ:CRSP), a healthcare company with a focus on gene editing. Yet in recent history, Cathie Wood is likely interested in the stock as an acquisition target. This comes after approval of Casgevy, a one-time treatment for sickle cell disease. And this could generate incredible revenue in the near future.

Yet the stock is down from all-time highs, with revenue shrinking in the recent past. Because of this, it could be a valuable acquisition target for the right buyer – and, therefore, an easy way to get in on the gene editing market.

As for today’s investor, it’s a great time to get in on CRISPR stock. It’s already on the path to recovery, has a solid future ahead with its Casgevy product, and could be part of an acquisition. Shares are up 24% in the last year alone, with even more growth ahead to help it reach its 52-week high.

Recursion

Another top stock in the healthcare sector that Cathie Wood is buying is Recursion Pharmaceuticals (NASDAQ:RXRX). This TechBio company has spent a decade “building one of the world’s largest biological and chemical datasets,” the company states. This will help future scientists “decode biology” and allow for a faster way of identifying the right solution to improve drug efficiency.

Recursion, however, recently outlined its new Large Language Model-Orchestrated Workflow Engine (LOWE), which is like artificial intelligence (AI) for biology and chemical data. With a faster workflow, the company can make faster discoveries, and therefore sell drugs faster. So no wonder shares have soared higher and higher.

However, this of course takes a lot of investment. The company continues to trade at a loss, with revenues expected to continue to be lower than in previous years. Even so, long-term investors such as Cathie Wood will likely see great things from this stock. For now, shares are still up by an impressive 22% in the last year.

Unity

Canadian investors can also check out Unity Software (NYSE:U) for something out of the healthcare sector. Cathie Wood recently invested in the game engine, despite going through quite a bit of drama over the last while. Unity stock cut 25% of its workforce during a company “restructure,” just last week. All while the stock continues to spiral.

However, it seems that Cathie Wood is using this spiral as an opportunity. Especially as an interm-chief executive officer (CEO) stepped in from IBM, and was already making changes. Specifically, the interm-CEO stated the company is trying to do too many things.

It’s unclear where the focus will be in the near future. And that focus likely won’t happen until Unity has a full-time CEO. But for now, investors such as Cathie Wood are taking this downturn as an opportunity ahead of what could be a huge turnaround in the future. Especially from an innovative company like Unity stock.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends CRISPR Therapeutics, International Business Machines, and Unity Software. The Motley Fool has a disclosure policy.

More on Tech Stocks

A worker drinks out of a mug in an office.
Tech Stocks

CrowdSrike Stock Is up 167% in the Last Year: Here’s Why Even More Is Coming

CRWD (TSX:CRWD) stock already demonstrated it can achieve huge growth. But with focus on cybersecurity, there is even more to…

Read more »

A close up image of Canadian $20 Dollar bills
Tech Stocks

Got $3,000? 3 Tech Stocks to Buy and Hold for the Long Term

Are you looking for stocks to invest in? Here are three tech stocks you can buy with $3,000!

Read more »

Bitcoin
Tech Stocks

Hut 8 Stock Is Great: But Here’s Why You Shouldn’t Buy It

Hut 8 stock (TSX:HUT) has surged in share price as Bitcoin (CRYPTO:BTC) continues to rise. But I'd still stay far…

Read more »

A bull outlined against a field
Tech Stocks

Is a Bull Market Here? 4 Reasons to Buy Celestica Stock Like There’s No Tomorrow 

Celestica (TSX:CLS) stock has been a huge winner for investors this year, but there could be even more in the…

Read more »

Technology, internet and networking, security concept
Tech Stocks

3 Things You Need to Know If You Buy Celestica Stock Today

Celestica stock (TSX:CLS) has surged an insane 215% in the last year. So is it now overvalued? Or should investors…

Read more »

Different industries to invest in
Tech Stocks

This Ridiculously Cheap Warren Buffett Stock Could Help Make You Richer

Warren Buffett jumped out and back in to this stock, so what should investors consider before buying in bulk as…

Read more »

cryptocurrency, crypto, blockchain
Tech Stocks

3 No-Brainer Cryptocurrency Stocks to Buy With $500 Right Now

Bitcoin hit its highest point in two years, but instead of paying that high price, invest in these cryptocurrency stocks.

Read more »

Electric car being charged
Tech Stocks

4 Top Electric Vehicle Stocks to Buy in March

EV stocks are due for a rebound, and that could be in the next year. Even if it's not, these…

Read more »