Cathie Wood, the celebrated investor known for her risky yet successful bets on innovative and disruptive technologies, has faced criticism for her volatile stock-picking strategy. While her flagship fund, the ARK Innovation ETF, saw impressive gains in 2020, it struggled in 2021 and 2022. This year, the fund is up 25.6%, but lags behind other tech-focused funds. Despite the ups and downs, Wood’s ARKK fund holds a stake in Exact Sciences, a molecular diagnostics company that develops non-invasive tests for the early detection of cancer. Exact Sciences’ stock has outperformed ARKK, with shares up 32.6% this year. The company’s strong financials, including increased revenues, reduced losses, and improved cash flow, have contributed to its positive outlook. Additionally, Exact Sciences’ flagship product, Cologuard, has gained widespread acceptance among healthcare professionals, and the company is working on a next-gen version that is expected to further boost its revenues and profitability. Analysts remain bullish on Exact Sciences, with a consensus “Strong Buy” rating and a significant upside potential.
Exact Sciences, founded in 1995, is a molecular diagnostics company focused on developing non-invasive tests for the early detection of cancer. Its flagship product, Cologuard, is a DNA test that detects colorectal cancer, the second leading cause of cancer death in the United States. Cathie Wood’s flagship fund holds a significant stake in Exact Sciences, making it one of her top holdings. The stock has performed well, with shares up 32.6% on a year-to-date basis. Exact Sciences reported strong financials in its latest quarterly earnings, including increased revenues, narrower losses, and improved cash flow. The company also raised its revenue guidance for the year. With Cologuard’s widespread acceptance among medical professionals, Exact Sciences is well-positioned for future growth. Analysts are optimistic about the company’s earnings prospects, expecting continued improvement in year-over-year losses. Overall, analysts have a consensus “Strong Buy” rating for Exact Sciences, with a substantial upside potential from current levels.
In conclusion, Cathie Wood’s ARKK fund holds a stake in Exact Sciences, a molecular diagnostics company that develops non-invasive tests for the early detection of cancer. Despite the volatile performance of Wood’s fund, Exact Sciences has outperformed and reported strong financials, including increased revenues and narrower losses. The company’s flagship product, Cologuard, has gained widespread acceptance among healthcare professionals, and Exact Sciences is working on a next-gen version that is expected to boost revenues and profitability. Analysts remain optimistic about Exact Sciences, with a consensus “Strong Buy” rating and a substantial upside potential from current levels.
