HomeMarket NewsThe Top Cathie Wood Stock Picks for April 2024

The Top Cathie Wood Stock Picks for April 2024

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Cathie Wood’s track record may not be flawless, but hidden amid the mix of choices are gems worth unearthing.

The Rollercoaster Ride of Cathie Wood

Despite some controversial picks that raised eyebrows among investors, such as the lofty valuations of Coinbase and Tesla, there have been instances where Wood’s foresight has paid off handsomely. One notable success was her early bet on Tesla before its meteoric rise.

Exact Sciences (EXAS)

EXACT Sciences Corporation office exterior. EXAS stock.

Source: Tada Images / Shutterstock

Exact Sciences (NASDAQ: EXAS) has been frequently overlooked by investors, with its colon cancer test, Cologuard, being its main highlight. Recently, the company made waves with positive data on a non-endoscopic esophageal cancer test, causing its stock to surge by around 10% within days.

Aside from Cologuard, other tests by Exact Sciences are showing promising growth trends. The revenue from overseas sales of Oncoptype tests soared by 48% last quarter compared to the previous quarter of 2022. Add to that the potential billion-dollar sales forecast for its Predictive Oncology unit, and Exact Sciences emerges as one of the top picks in Cathie Wood’s portfolio.

Roku (ROKU)

The entrance sign at Roku San Jose campus. Roku produces a variety of digital media players that allow customers to access internet streamed video or audio services.

Source: Tada Images / Shutterstock.com

Roku (NASDAQ: ROKU) commands the U.S. market with its premier streaming platform. As streaming continues to gain momentum, Roku’s engagement metrics have been on a meteoric rise. In 2023, the platform witnessed a 20% surge in streaming hours, surpassing 100 billion, while its user base expanded by 10 million.

With marketers leveraging user behavior for targeted advertising, Roku’s revenue climbed by an impressive 13.5% in the last quarter, reaching $984.4 million. The trajectory of streaming growth points towards further revenue escalation for Roku in the foreseeable future.

Zoom Video (ZM)

The Evolution of Zoom Video: From Growth to Value Stock

Zoom Video: Thriving Amidst Evolution

Transitioning from Growth to Value

Amidst the tumultuous pandemic, Zoom Video (NASDAQ: ZM) emerged as a shining star, characterized by rapid growth and a lofty valuation. However, the winds of change have swept through the realm of Zoom, transforming it into a resilient value stock. The company now boasts a modest forward price-earnings ratio of 12.67 times, marking a significant shift from its previous status.

Revenue Dynamics

Zoom Video’s financial landscape reveals an intriguing tale of two revenue streams. In the fourth quarter of the previous year, the company witnessed a 5% surge in revenue from enterprise customers, soaring to $667 million. In contrast, overall sales only inched up by 2.7% year-over-year, amounting to $1.15 billion.

Enterprise Dominance

This revenue dissonance paints a vivid pictureβ€”Zoom Video is harvesting a bountiful yield from enterprises while experiencing a sluggish growth trajectory in consumer sales. The disparity in revenue sources, coupled with the deeper pockets of enterprise clients, serves as a catalyst primed to propel the company’s growth into overdrive over the long haul.

Insights and Future Projections

As Zoom Video traverses the dynamic terrain of the stock market, its evolution offers profound insights into the ever-shifting forces shaping the technological landscape. The company’s strategic positioning within the enterprise sector sets the stage for a promising trajectory, hinting at sustained growth and prosperity in the days ahead. Investors keen on unravelling the enigmatic world of stocks are undoubtedly keeping a close eye on Zoom Video, awaiting the next chapter of its captivating journey.

On the date of publication, Larry Ramer held a long position in EXAS and a short position and put options expiring in March 2025 on COIN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.

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