In this article we discuss the 5 best biotech stocks to buy according to Cathie Wood. If you want to read our detailed analysis of Wood‘s history, and hedge fund performance, go directly to the 10 Best Biotech Stocks to Buy According to Cathie Wood.
5. Intellia Therapeutics, Inc. (NASDAQ: NTLA)
Number of Hedge Fund Holders: 29
Intellia Therapeutics, Inc. (NASDAQ: NTLA) is a Massachusetts-based biotech firm founded in 2014. It is ranked fifth on our list of 10 best biotech stocks to buy according to Cathie Wood. The company stock has offered investors more than 258% returns in the past twelve months. The investment in Intellia represents 1.53% of ARK Investment’s portfolio. The company focuses on the development and marketing of products made using a CRISPR gene-editing system. The system was pioneered by Jennifer Doudna and Virginijus Šikšnys.
Intellia Therapeutics, Inc. (NASDAQ: NTLA) reported earnings per share of -$0.69 for the first quarter of 2021 on May 6, missing market estimates by $0.04. The revenue for the period was close to $6.5 million, down 50% compared to last year.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm ARK Investment Management is a leading shareholder in Intellia Therapeutics, Inc. (NASDAQ: NTLA) with 9.6 million shares worth more than $771 million.
4. Invitae Corporation (NYSE: NVTA)
Number of Hedge Fund Holders: 34
Invitae Corporation (NYSE: NVTA) is a California-based genetic information company founded in 2010. It is placed fourth on our list of 10 best biotech stocks to buy according to Cathie Wood. Invitae stock has returned more than 70% to investors in the past year. ARK Investment holds close to 24 million shares in the company worth over $916 million, representing more than 1.8% of their investment portfolio. The firm offers tests related to hereditary cancer, cardiology, neurology, pediatrics, oncology, metabolic conditions, and rare diseases.
On May 4, Invitae Corporation (NYSE: NVTA) posted quarterly results for the first three months of 2021, reporting earnings per share of -$0.63, beating market estimates by $0.04, and a revenue of over $103 million, up 61% year-on-year.
At the end of the first quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $2.7 billion in Invitae Corporation (NYSE: NVTA), down from 35 in the preceding quarter worth $3.4 billion.
Just like Teladoc Health, Inc. (NYSE: TDOC), Exact Sciences Corporation (NASDAQ: EXAS), and CRISPR Therapeutics AG (NASDAQ: CRSP), Invitae Corporation (NYSE: NVTA) is one of the best biotech stocks to buy according to Cathie Wood.
3. CRISPR Therapeutics AG (NASDAQ: CRSP)
Number of Hedge Fund Holders: 27
CRISPR Therapeutics AG (NASDAQ: CRSP) is a Switzerland-based biotech firm founded in 2013. It is ranked third on our list of 10 best biotech stocks to buy according to Cathie Wood. CRISPR stock has offered investors returns exceeding 68% over the past year. The company is primarily a gene-editing firm focused on the development and marketing of transformative gene-based medicines that treat a range of diseases. These medicines are developed using a technology called Clustered Regularly Interspaced Short Palindromic Repeats.
In quarterly earnings posted on April 27, CRISPR Therapeutics AG (NASDAQ: CRSP) reported earnings per share (EPS) of -$1.51. The figure missed market predictions by $0.04. The revenue over the period was just $0.54 million, up more than 230% year-on-year.
At the end of the first quarter of 2021, 27 hedge funds in the database of Insider Monkey held stakes worth $1.4 billion in CRISPR Therapeutics AG (NASDAQ: CRSP), down from 34 in the preceding quarter worth $2 billion.
Just like Teladoc Health, Inc. (NYSE: TDOC) and Exact Sciences Corporation (NASDAQ: EXAS), CRISPR Therapeutics AG (NASDAQ: CRSP) is one of the best biotech stocks to buy according to Cathie Wood.
2. Exact Sciences Corporation (NASDAQ: EXAS)
Number of Hedge Fund Holders: 41
Exact Sciences Corporation (NASDAQ: EXAS) is a Wisconsin-based biotechnology firm founded in 1995. It is placed second on our list of 10 best biotech stocks to buy according to Cathie Wood. Exact stock has returned more than 26% to investors in the past year. ARK Investment Management holds more than 9 million shares in the molecular diagnostics firm worth over $1.2 billion. This represents close to 2.4% of the entire investment portfolio. Exact Sciences develops and markets testing products for cancer.
On May 4, Exact Sciences Corporation (NASDAQ: EXAS) reported earnings per share of -$0.18 for the first quarter of 2021, beating market estimates by $0.84. The revenue over the period was more than $400 million, up more than 15% year-on-year.
At the end of the first quarter of 2021, 41 hedge funds in the database of Insider Monkey held stakes worth $2.4 billion in Exact Sciences Corporation (NASDAQ: EXAS), up from 40 in the previous quarter worth $1.8 billion.
In its Q4 2020 investor letter, RiverPark Advisors, LLC, an asset management firm, highlighted a few stocks and Exact Sciences Corporation (NASDAQ: EXAS) was one of them. Here is what the fund said:
“EXAS shares were the final top contributor for the quarter on both the acquisition of Thrive Earlier Detection, a leading multi-cancer screening company, and strong earnings. Third quarter revenue grew 87% to $408 million, including $102 million from COVID19 testing, and the company reported a 77% gross margin and $94 million of adjusted EBITDA, up 16% year over year.
The company’s Thrive acquisition combines cancer screening pioneers, specifically integrating Thrive’s early-stage cancer screening test CancerSEEK, with Exact’s scientific platform, clinical organization, and commercial infrastructure (the largest commercial team by far with over 1,000 people in cancer diagnostics). Thrive’s recent CancerSEEK study is the only liquid biopsy clinical trial that screens undiagnosed patients. Combined with Exact’s own multi-cancer liquid biopsy screening test (management disclosed compelling data on it for the first-time), Exact has quickly pivoted from its single cancer screening tests (Cologuard for colon cancer and Oncotype for breast cancer) and is now positioned as a leader in the $25 billion+ multi-cancer screening market.”
1. Teladoc Health, Inc. (NYSE: TDOC)
Number of Hedge Fund Holders: 50
Teladoc Health, Inc. (NYSE: TDOC) is a New York-based health company founded in 2002. It is ranked first on our list of 10 best biotech stocks to buy according to Cathie Wood. The firm deals in virtual healthcare. The hedge fund of Cathie Wood owns over 14 million shares in the firm worth over $2.6 billion, representing over 5% of the investment portfolio of ARK Investment Management. Teladoc stock has returned more than 4.7% to investors in the past week. The firm partners with medical institutions to provide analytics services too.
On April 28, Teladoc Health, Inc. (NYSE: TDOC) posted earnings results for the first three months of 2021, reporting earnings per share of -$1.31 and a revenue of over $450 million. The EPS missed market estimates by $0.72.
At the end of the first quarter of 2021, 42 hedge funds in the database of Insider Monkey held stakes worth $3.3 billion in Teladoc Health, Inc. (NYSE: TDOC), down from 50 in the preceding quarter worth $2.6 billion.
Just like CRISPR Therapeutics AG (NASDAQ: CRSP) and Exact Sciences Corporation (NASDAQ: EXAS), Teladoc Health, Inc. (NYSE: TDOC) is one of the best biotech stocks to buy according to Cathie Wood.
In its Q4 2020 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and Teladoc Health, Inc. (NYSE: TDOC) was one of them. Here is what the fund said:
“Teladoc Health offers remote physician access to patients at home. After experiencing incredible levels of growth throughout the early stages of the pandemic as its unique value proposition rose to the forefront of the healthcare industry, the firm’s shares cooled off a bit as optimistic vaccine data slightly curtailed investor expectations for the firm’s future growth potential. We sold the stock.”
You can also take a peek at Billionaire Izzy Englander’s Top 10 Stock Picks and Billionaire David Abrams’ Top Stock Picks.
