5 Cathie Wood Stocks that Can Rebound in Q4

4. Exact Sciences Corporation (NASDAQ:EXAS)

Number of Hedge Fund Holders: 28

Share Price Decline YTD as of August 23: 55.80%

Exact Sciences Corporation (NASDAQ:EXAS) is an American provider of cancer screening and diagnostic test products. ARK Investment Management boosted its stake in Exact Sciences Corporation (NASDAQ:EXAS) by 5% in Q2 2022, holding about 15 million shares worth $745.7 million, representing 4.41% of the total 13F portfolio. The stock has plummeted about 56% year to date as of August 23. 

On August 3, Craig-Hallum analyst Alex Nowak reaffirmed a Buy recommendation on Exact Sciences Corporation (NASDAQ:EXAS) but lowered the price target on the shares to $60 from $81. The company provided optimistic comments in its Q1 call and delivered an equally impressive Q2, the analyst noted. Cologuard and Precision Oncology generated sales upside, while COVID sales were in line. The analyst likes the long-term vision of Exact Sciences Corporation (NASDAQ:EXAS) in oncology, though short-term he is “left without a call after a more jumbled quarter”. Piper Sandler analyst David Westenberg on August 17 maintained an Overweight rating on the stock and lowered the price target on the shares to $40 from $50. The analyst updated models in the genomic tools and labs space after earnings.

Among the hedge funds tracked by Insider Monkey, 28 funds were bullish on Exact Sciences Corporation (NASDAQ:EXAS) at the end of June 2022, compared to 32 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is a prominent stakeholder of the company, with 2.5 million shares worth about $100 million. 

Here is what RiverPark Large Growth Fund has to say about Exact Sciences Corporation (NASDAQ:EXAS) in its Q4 2021 investor letter:

“Exact Sciences: EXAS shares declined on a disappointing recovery in Cologuard screening due to COVID. Despite continued revenue growth from Precision Oncology and COVID testing, and Cologuard screening revenue growth of 30%, COVID restrictions limited access to physicians’ offices for the company’s and its Pfizer Joint Venture sales force as well as causing a severe drop off of in-person wellness visits.

In the last year, Exact has also pivoted the company significantly from its single cancer screening tests (Cologuard for colon cancer and Oncotype for breast cancer) to multi-cancer screening through its Thrive acquisition, and to minimal residual disease and recurrence monitoring through its Ashion and Tardis acquisitions. Through this pivot, Exact has tripled its market opportunity from $20 billion to $60 billion.”