5 Top-Ranked Stocks Championed by Cathie Wood for Strong Returns in 2024

Cathie Wood, a notable figure in the investment world, is renowned for her focus on ‘Disruptive Innovation’, a concept coined in Harvard Business Review back in 1995 to describe game-changing advancements in various technological fields. Leading the ARK Invest family of ETFs, with an impressive asset management portfolio of about $14 billion, Wood has a proven track record of betting on technologies that reshape industries, including advancements in AI, blockchain, robotics, clean energy, and genome sequencing. She maintains a long-term outlook, with a particular emphasis on upward trends over a five-year span.

Wood also ventures into the cryptocurrency space, with significant holdings such as Coinbase marking a substantial share of her Ark Innovation ETF (ARKK). The performance of Wood's ETFs has been outstanding in 2023, with gains soaring above 70% for ARKK, over 100% for Ark Next Generation Internet ETF, and above 90% for Ark Fintech Innovation ETF. With potential federal rate cuts and a 'soft landing' economic scenario, Wood's ETFs are poised to continue their momentum into 2024.

Popular Picks

Among Wood's selections, five companies stand out as poised for potential returns in 2024: Palantir (PLTR), Veracyte (VCYT), PagerDuty (PD), Roku (ROKU), and UiPath (PATH).

Palantir, with its sophisticated data analysis platform, has expanded across numerous industries, racking up significant deals and enjoying a bullish Zacks Rank #1 and Growth Score of A. Its projections for earnings in 2024 have risen, showing a positive investor sentiment, and its stock has skyrocketed in the past year.

Veracyte also carries a Zacks Rank #1 and Growth Score of A, flourishing due to the increased demand for its genomic testing solutions. Investments in laboratory capabilities and strategic account acquisitions have been beneficial, with a notable reduction in projected losses for 2024.

PagerDuty, exhibiting a Zacks Rank #2 and Growth Score of A, rides on the growing need for its operations cloud. The adoption of AI is expected to broaden its customer base, indicated by expanding annual recurring revenues and big-spending clients. Though the stock has declined over the past year, earnings estimates for the coming fiscal year look optimistic.

Roku's stock performance over the past year has been stellar. With a Zacks Rank #2 and Growth Score of B, the company is thriving on the back of increased user engagement and strategic partnerships with various streaming services, fueling user growth and favorable earnings projections.

Lastly, UiPath, which has received a Zacks Rank #2 and Growth Score of B, mirrors the success of the broader adoption of its automation platform across key sectors. Client growth is a driving factor, and the projection for earnings sees a bright uptick, complimented by its impressive stock performance over the last year.

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