Similar to other ideas based on longstanding expert guidance, the allure of Cathie Wood stocks to buy centers on a core motivation: participants want to make money no matter the circumstances they find themselves in. Frankly, you can do a lot worse than leading picks from Cathie Wood.
When people look to outside help with their portfolio, they want assurances that they’re not dealing with some fly-by-night operation hawking the latest system fad. Sure, some of the popular ideas in the archives of the Internet have performed well. However, as circumstances pivoted, many if not most of these fads collapsed. With stocks Cathie Wood likes, you’re dealing with a true professional.
Another aspect that I appreciate about top Wood-approved stocks is that – by the consequence of her stature – she’s put to the test in ways you and I can only imagine. Knowing that talking heads on CNBC and Bloomberg are going to dissect your every move, you have every incentive to do well. She’s been under so much pressure and she still comes out on top. Therefore, you can reasonably put your trust in Wood’s investment choices.
According to data from Stockcircle.com, one of the top Cathie Wood stocks to put on your watch list is Teradyne (NASDAQ:TER). Though not the sexiest name out there, Teradyne – which focuses on instrument manufacturing for measuring and testing electricity and electrical signals – offers critical services. You don’t have to take my word for it. Instead, you can ask enterprises like Qualcomm (NASDAQ:QCOM) and Intel (NASDAQ:INTC), both high-profile customers.
Basically, Teradyne is a stagehand manager. While it might not get much public accolades, it keeps the show running. Unsurprisingly, then, it’s one of the stocks Cathie Wood likes. Per Stockcircle, the Wall Street matriarch increased exposure to TER by 92.7% in the second quarter of this year.
Financially, Teradyne’s best attributes are its bulletproof balance sheet and consistent profitability undergirded by strong operating and net margins. Finally, TER isn’t just one of the top Wood-approved stocks; it’s also appreciated by analysts, who peg it as a moderate buy. As well, the price target lands at $119.15, implying over 10% upside potential.
Kratos Defense (KTOS)
An obvious play on the aerospace and defense industry, Kratos Defense (NASDAQ:KTOS) presents an interesting case for Cathie Wood stocks. Generally, I just don’t imagine the Wall Street legend playing the defense sector. However, Kratos is relevant not just because of the current geopolitical environment but also for its core innovations.
Specifically, the company specializes in unmanned aerial vehicles. One iteration that stands out is the XQ-58A Valkyrie, an experimental stealthy unmanned combat aircraft. Should the Valkyrie reach the full distribution phase, it could be a potential game-changer. At a minimum, the platform should keep our service members out of harm’s way in the next big conflict.
To be sure, I don’t want to parade platforms of destruction. However, amid a global struggle for power and influence, it’s important for free nations to defend against tyranny. For that, I think KTOS makes an excellent idea among Wood’s investment choices. Lastly, analysts peg KTOS as a consensus strong buy with a $17.50 price target, implying nearly 9% upside.
Archer Aviation (ACHR)
Simultaneously one of the most enticing but risky enterprises among Cathie Wood stocks, Archer Aviation (NYSE:ACHR) specializes in electric vertical take-off and landing (eVTOL) aircraft. Colloquially, Archer is also known as a flying car company. Marrying the quiet, zero-emissions profile of electric vehicles with the urban flexibility of helicopters, Archer offers massive upside potential.
Indeed, the market isn’t waiting around. Since the beginning of this year, ACHR gained over 261% of its equity value. And it’s more than doubled in the trailing one-year period. Nevertheless, it’s one of the relatively discounted leading picks from Cathie Wood. Since its public market debut, ACHR fell 30%. On that basis, you’re not too late to ride the eVTOL trend.
According to Precedence Research, the underlying industry could hit a valuation of $35.79 billion by 2032. That’s probably a key reason why Wood acquired $3.8 million worth of ACHR. On a final note, analysts peg ACHR as a consensus strong buy. Their average price target stands at $8.50, implying nearly 22% upside potential.
On the date of publication, Josh Enomoto 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.