The attention-grabbing Cathie Wood stocks have garnered recognition for their potential as trailblazers in transformative technologies, promising substantial returns. However, Wood’s flagship ARK Innovation ETF (NYSEARCA:ARKK) has taken an 8% hit year-to-date (YTD). In stark contrast, the S&P 500 and Nasdaq 100 have surged by 3.9% and 4.6%, respectively. Nonetheless, several companies in her portfolio presently present appealing entry points for long-term investors, given their more enticing valuations.

In her quest for value, Wood has recently accumulated more shares in some of her investments. Despite short-term obstacles, the following three Cathie Wood stocks appear to offer robust long-term prospects for investors.

Tesla (TSLA)

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The widely-tracked fund manager remains bullish on Tesla (NASDAQ:TSLA), despite the recent drop in TSLA stock prices. This confidence primarily stems from two critical factors: the projected acceleration of global electric vehicle (EV) adoption and Tesla’s burgeoning artificial intelligence (AI) capabilities. 

Nevertheless, Tesla’s Q4 2023 figures failed to meet expectations, signaling lower vehicle volume growth in 2024. Revenue saw a modest 3% year-over-year (YOY) increase to $25.17 billion. Non-GAAP net income stood at $2.49 billion, equating to 71 cents in earnings per share (EPS).

Despite this, Cathie Wood is committed to the broader narrative of the global EV market expansion. She argues that transient production obstacles and volume growth contractions signify a cyclical trough rather than a fundamental deviation in the company’s trajectory.

Presently, Tesla is honing in on cost reduction in a bid to enhance competitiveness against burgeoning Chinese EV contenders. Wood posits that this strategy could open the path to future margin enhancements and accelerated growth if Tesla’s autonomous taxi networks materialize, which could conceivably occur within the next two years.

TSLA stock has plummeted by 25% YTD, trading at a valuation of 57.5 times forward earnings and 6.8 times trailing sales. The 12-month median price projection for TSLA shares is $223, suggesting a potential 20% upswing from current levels.

CRISPR Therapeutics (CRSP)

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The Switzerland-based CRISPR Therapeutics (NASDAQ:CRSP) emerges as an enticing prospect among Cathie Wood stocks. Investors are optimistic that the company’s technology to modify DNA sequences could drive therapeutic breakthroughs.

The management unveiled Q3 2023 results in November, highlighting a net loss of $112 million, in contrast to a net loss of $174.5 million in the corresponding period of the preceding year. The company closed the quarter with substantial cash and equivalents amounting to $1.74 billion.

CRISPR recently secured FDA approval for its gene-editing therapy, Casgevy, intended for treating sickle cell disease (SCD) and beta thalassemia. This milestone has the potential to unlock a revenue stream of several billion dollars for the company. With an estimated 100,000 patients grappling with SCD, the market opportunity is significant.

Investor Confidence Bounces Back as CRISPR Stock Shows Recovery and Unity Software Faces Challenges

The market for CRISPR therapeutics was an ambitious bet, and skeptics certainly didn’t hold back. The initial market response was a sell-off, spurred by widespread apprehension about the treatment cost. However, those who stood tall through the tempestuous period were soon rewarded as CRISPR stock exhibited a dramatic recovery, affirming the unwavering confidence of long-term investors in this groundbreaking therapy.

The CRISPR Conundrum

In the U.S., the potential market size for Casgevy stands impressively at $70 billion. Despite this tantalizing figure, early naysayers were vocal about their doubts, painting a bleak picture of limited adoption due to the foreseen hefty cost of the treatment. This wave of skepticism led to an initial sell-off in CRSP stock.

Analysts pointed out the expected high cost of treatment as a major hurdle, casting a shadow of hesitation over widespread adoption. The anticipated challenges unsettled many investors, and the stock suffered notable losses. However, showing true resilience, CRSP shares have surged back with an impressive recovery, drawing a clear line under the unwavering confidence of long-term investors in this groundbreaking therapy. CRISPR stock has shown a commendable return of approximately 15% year-to-date, a clear validation of the steadfast faith that investors continue to harbor. Even more, the stock is currently trading at 35.5 times sales, echoing the resurgent investor interest. The future seems bright for CRISPR, given that the average analyst price target for CRSP shares stands tall at $79.

CRISPR: A Story of Resilience

The resurgence of CRISPR stock illustrates the power of belief in innovation and the willingness to defy all odds. As the initial skepticism gave way to long-term investor confidence, the market witnessed a powerful testament to the enduring appeal of cutting-edge therapies. This revival represents a triumph of science and innovation over skepticism and doubt, and it underscores the remarkable resilience of the stock in the face of adversity.

Unity Software: Navigating Complex Terrains

Unity Software, a stalwart in the video game software development arena, encountered a series of intricate challenges that have put investors on a rollercoaster ride. The spotlight fell on the fallout from stringent regulations levied on video games in China, and the operational challenges in 2023 warranted a recalibration of their pricing model.

Despite these hurdles, Unity Software has emerged with vigor, and the entrance of Cathie Wood, renowned for her historic investment prowess, into the Unity stock reflects her resounding confidence. It’s a clear nod to the promising future of the metaverse and virtual reality space, opening up a world of opportunities for gaming platforms.

Challenges Faced by Unity Software

Unity stock, despite its valiant endeavors, has seen a decline of 19% year-to-date. The shares are currently trading at 6.3 times trailing sales, a reflection of the rocky terrain it navigates. The 12-month median price forecast for U shares is pegged at $36, indicating a potential 10% upside from the current position. These headwinds fail to fully dim the prospects of Unity Software, as it stands ready to take on the future with its resolute spirit.

Disclaimer: On the date of publication, Tezcan Gecgil did not have (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.