5 Best Stocks to Buy in 2021 According to Cathie Wood

In this article we discuss the 5 best stocks to buy in 2021 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 Stocks to Buy in 2021 According to Cathie Wood.

5. Zillow Group, Inc. (NASDAQ: Z)

Number of Hedge Fund Holders: 83

Zillow Group, Inc. (NASDAQ: Z) is a Washington-based online real estate marketplace founded in 2004. It is ranked fifth on our list of 10 best stocks to buy in 2021 according to Cathie Wood. Ark Investment Management owns more than 10 million shares in the company worth over $1.3 billion, representing close to 2.6% of the investment portfolio of the hedge fund. Zillow stock has returned more than 98% to investors in the past year. In addition to advertising real estate, the company offers financing and insurance products as well. 

On May 4, Zillow Group, Inc. (NASDAQ: Z) posted earnings per share of $0.2 for the first three months of 2021, beating market estimates by $0.13. The revenue for the first quarter of 2021 was $1.3 billion, up 8% year-on-year.

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm ARK Investment Management is a leading shareholder in Zillow Group, Inc. (NASDAQ: Z) with 10 million shares worth more than $1.3 billion. 

In its Q1 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Zillow Group, Inc. (NASDAQ: Z) was one of them. Here is what the fund said:

“Zillow Group, Inc. operates leading U.S. real estate sites, a mortgage marketplace, and the Zillow Offers home-buying business. Shares fell during the quarter in concert with the broader rotation out of technology-based stocks despite the company’s continued inflection in mortgages revenue, strong profitability in its core business, and a positive real estate outlook as Zillow builds out its iBuying ecosystem. In our view, Zillow is a leader in the large online real estate advertising market with substantial upside from mortgages and Offers, and we remain investors.”