4 Cheap Stocks to Buy According to Cathie Wood

1. 10x Genomics, Inc. (NASDAQ:TXG)

Gene sequencing company 10X Genomics has lost 80% of its value year to date and presents an attractive buying opportunity for those who are looking for cheap stocks and have a large risk appetite. In August, Goldman Sachs downgraded the stock to Sell from Neutral, citing sales growth slowdown. The firm said in a note that as 10X Genomics becomes a multi-product company, its 2023/24 sales growth could lag the consensus and historical rates.

Despite this bearish sentiment, Cathie Wood is increasing her hold in the stock, as ARK increased its stake in the company by 28%. ARK has a stake worth $130 million in the company.

Here is what ClearBridge All Cap Growth Strategy has to say about 10x Genomics, Inc. (NASDAQ:TXG) in its Q4 2021 investor letter:

“We also established a position in 10x Genomics (TXG). TXG is the dominant player in single-cell analysis and enjoys a duopoly in spatial profiling, two emerging areas of scientific research. Though the company is not yet profitable, we are attracted to the business’s strong gross margin profile and a high degree of visibility as consumables account for 85% of revenue. We also continue to see opportunities for investment in other disruptive areas of health care with large addressable markets, like diabetes.

You can also take a look at 10 Healthcare Dividend Stocks with Over 3% Yield and 10 Best Solar Energy Stocks to Buy for 2022.

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