Investing
Cathie Wood's ARK Funds Are Loading Up on These 5 Red-Hot Stocks Trading Under $10
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While most of Wall Street focuses on large-cap and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy. Many of the biggest public companies, especially the technology giants, trade in the hundreds, all the way up to over $1,000 per share or more. At those steep prices, it is difficult to get any decent share count leverage.
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Many investors, especially more aggressive traders, look at lower-priced stocks as a way not only to make some good money but to get a higher share count. That can really help the decision-making process, especially when you are on to a winner, as you can always sell half and keep half.
Skeptics of low-priced shares should remember that at one point Amazon, Apple and Netflix traded in the single digits. Nvidia, which has exploded higher on AI semiconductor chips, traded under $10 for years. One stock we featured over the years, Zynga, was purchased by Take-Two Interactive. Cogent Biosciences, which we featured in March of 2022, has tripled since then.
While looking for more home runs, we screened all the companies that Cathie Wood’s ARK funds own, looking for stocks trading under $10 with big-time potential. Although all five of the following stocks are ARK holdings and rated Buy, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Adaptive Biotechnologies
Wood has bought almost 10 million shares of this stock for her ARK Genomic Revolution fund. Adaptive Biotechnologies Corp. (NASDAQ: ADPT) is a commercial-stage company that develops an immune medicine platform for the diagnosis and treatment of various diseases.
The company offers immunoSEQ, a platform and core immunosequencing product that is used to answer translational research questions, as well as to discover new prognostic and diagnostic signals. It also provides clonoSEQ, a clinical diagnostic product for the detection and monitoring of minimal residual disease in patients with multiple myeloma, B cell acute lymphoblastic leukemia and chronic lymphocytic leukemia, as well as available as a CLIA-validated laboratory developed test for patients with other lymphoid cancers.
In addition, Adaptive Biotechnologies offers a pipeline of clinical products and services that are used for the diagnosing, monitoring and treatment of diseases, such as cancer and autoimmune disorders. It offers products and services for life sciences research, clinical diagnostics and drug discovery applications. The company has strategic collaborations with Genentech for the development, manufacture and commercialization of neoantigen directed T cell therapies for the treatment of a range of cancers and with Microsoft to develop diagnostic tests for the early detection of various diseases from a single blood test.
Piper Sandler has a $15 target price on Adaptive Biotechnologies stock, while the consensus target is just $12.29. The shares closed on Friday at $6.30 apiece.
24/7 Wall St.Archer Aviation
This company recently signed a potentially huge deal with the Air Force for air taxis. Archer Aviation Inc. (NYSE: ACHR) is an urban air mobility company that designs, develops, manufactures and operates electric vertical takeoff and landing (eVTOL) aircraft to carry passengers.
Archer Aviation is a leader in eVTOL aircraft, and it announced earlier this week that it has significantly expanded its partnership with the U.S. Department of Defense by signing new contracts with the U.S. Air Force with a total value of up to $142 million.
The new contracts signal the U.S. military’s recognition of the transformative potential that Archer’s innovative eVTOL aircraft brings to the country’s armed forces. This new execution phase of the partnership includes the delivery of up to six of Archer’s Midnight aircraft to the Air Force, the sharing of additional flight test data and certification-related test reports, pilot training and the development of maintenance and repair operations.
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Canaccord Genuity started coverage earlier this summer and has set a $9 target price. Archer Aviation stock has a consensus target of $9.25. On Friday, shares closed trading at $5.77.
Cerus
This little-known health care company has been battered and offers an incredible entry point, and Wood owns over 20 million shares. Cerus Corp. (NASDAQ: CERS) operates as a biomedical products company that focuses on developing and commercializing the Intercept Blood System, a proprietary technology for controlling biological replication that is designed to reduce blood-borne pathogens in donated blood components intended for transfusion.
The Intercept Blood System for platelets and plasma is designed to inactivate blood-borne pathogens in platelets and plasma donated for transfusion. The Intercept Blood System for red blood cells inactivates blood-borne pathogens in red blood cells donated for transfusion. And the Intercept Blood System for cryoprecipitation uses its plasma system to produce pathogen-reduced cryoprecipitated fibrinogen complex for the treatment and control of bleeding, including massive hemorrhage associated with fibrinogen deficiency, as well as pathogen reduced plasma, cryoprecipitate reduced.
The company sells platelet and plasma systems through its direct sales force and distributors in the United States, Europe, the Middle East, Latin America and elsewhere.
Cantor Fitzgerald’s $9 target price is higher than the consensus target of $7.63. Cerus stock closed at $1.95 on Friday.
24/7 Wall St.Genius Sports
This sports-betting-related stock just signed a big-time partnership with the NFL, and Wood owns over 5 million shares. Genius Sports Ltd. (NYSE: GENI) develops and sells technology-led products and services to the sports, sports betting and sports media industries.
Genius Sports offers technology infrastructure for the collection, integration and distribution of live data of sports leagues; streaming solutions, comprising of technology, automatic production and distribution for sports to commercialize video footage of their games; and end-to-end integrity services to sports leagues, such as full-time active monitoring technology, which uses mathematical algorithms to identify and flag suspicious betting activity in global betting markets, as well as full suite of online and offline educational and consultancy services.
The company also provides live sports data collection; pre-game and in-game odds feeds; risk management services, including customer profiling, monitoring of incoming bets, automated acceptance and rejection of bets, and limit setting; live streaming services; creation, delivery and measurement services for personalized online marketing campaigns; and fan engagement widgets for digital publishers that offer live game statistics and betting-related content.
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Genius Sports stock has an $8 price objective at Credit Suisse. The $7.50 consensus target is closer to the $6.21 closing share price on Friday.
24/7 Wall St.908 Devices
This is another ARK portfolio stock that also has the potential to be a huge winner. 908 Devices Inc. (NASDAQ: MASS) provides various purpose-built handheld and desktop mass spectrometry (Mass Spec) devices to interrogate unknown and invisible materials in life sciences research, bioprocessing, industrial biotech, forensics and adjacent markets. It operates in the Americas, Europe, the Asia Pacific and elsewhere.
908 Devices products include:
- MX908, a handheld, battery-powered and Mass Spec device that is designed for rapid analysis of gas, liquid and solid materials of unknown identity
- Rebel, a small desktop analyzer that provides real-time information on the extracellular environment in bioprocesses
- Maven and Trace C2, an online device for bioprocess monitoring and control
- ZipChip solution, a plug-and-play, high-resolution separation platform that optimizes Mass Spec sample analysis
The $20 SVB Leerink target price compares with a $17 consensus target, and 908 Devices stock last traded at $7.21 on Friday.
These five stocks that Cathie Wood owns millions of shares of are perfect for aggressive investors who look to get share count leverage on companies that have sizable upside potential. While not suited for all investors, these are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage.
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