4 Cheap Stocks to Buy According to Cathie Wood

2. Veracyte, Inc. (NASDAQ:VCYT)

Genomic diagnostics company Veracyte first appeared in Cathie Wood’s portfolio in 2016. As of the end of the September quarter, Cathie Wood’s hedge fund had a $150.8 million stake in the company. In September, the company announced that its Decipher Prostate Genomic Classifier may help identify African American men with early, localized prostate cancer who are most likely to harbor more aggressive disease.

Billionaire Ken Fisher was also a significant shareholder of the company as of the end of the June quarter, as his hedge fund reported having a $29.3 million stake in the company.

Here is what Artisan Partners has to say about Veracyte, Inc. in its Q2 2021 investor letter:

“Among our bottom contributors (includes) Veracyte. Veracyte develops and markets molecular tests designed to minimize ambiguity in the treatment of patients with cancer. These tests can reduce unnecessary surgeries and help put cancer patients at ease when the decision is to “watch and wait.” Shares have been pressured amid a recent investment cycle (acquired Decipher and HalioDX) and a resurgence of the pandemic earlier this year weighing on testing volumes. In addition, the company’s founder and CEO recently announced she was moving to Executive Chair. Her replacement is the former CFO of Illumina, who is very knowledgeable in invitro diagnostics and played a critical role in Illumina’s international expansion efforts (which we expect him to pursue at Veracyte). We are maintaining our position as patients return to the clinic for testing and as management executes on its strong R&D pipeline, including the upcoming launch of a nasal swab lung cancer test. Longer-term, the company is well-positioned to expand internationally as it ports its growing menu of tests onto the recently acquired nCounter instrument.”