Why I bought Cathie Wood’s “underappreciated” Invitae stock

first_img Image source: Getty Images Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Joseph Clark owns shares in Invitae and Tesla. The Motley Fool UK does not own shares in any of the companies mentioned in this article. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Simply click below to discover how you can take advantage of this. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! “This Stock Could Be Like Buying Amazon in 1997” Why I bought Cathie Wood’s “underappreciated” Invitae stockcenter_img Our 6 ‘Best Buys Now’ Shares See all posts by Joe Clark Cathie Wood was named the best stock picker of 2020 by Bloomberg News after her ARK Innovation ETF returned over 150% in 2020. As a result of this, and her profitable calls with Tesla stock and Bitcoin, many investors watch her moves very closely.Recently, Wood said Invitae (NYSE: NVTA), a company that offers medical genetic testing, is the most underappreciated stock in her ARK Invest ETFs. Invitae closed Friday 12th March at $42.70, finishing the week over 20% higher after the CNBC interview. Despite the move, it remains below its all-time high of $61.59 set on 14th December 2020.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Cathie Wood’s “underappreciated” Invitae stock commentsWood said Invitae, in the molecular diagnostics space, is probably one of the most important companies in the genomic revolution, and it is investing aggressively to become the leader in that space.The ARK Invest founder stated that the disconnect for many peoples comes when they think of the lab testing industry, they think of Quest Diagnostics and Laboratory Corp, which she effectively believes are very mature companies, commoditised value stocks, and that Invitae is somewhat like Tesla in the automobile industry. Wood believes we will move away from one test for all medical practices and to much more personalised medicine, which will give just a few companies the lion’s share of the market.Potential market for genetic testingInvitae is a leader in genetic testing. It offers diagnostic predictive testing to help uncover and determine specific conditions or someone’s risks of developing certain diseases. Invitate forecasts that its total addressable market for genetic testing tops $150 billion. It highlighted the market for cancer screening and therapy selection to be the most promising, especially in older individuals.Invitae has never turned a profitThere are some things to be aware of, though, when it comes to Invitae stock. Since it was founded in 2013, the company has never turned a profit. It reported a net loss of $608.9 million, an increase of nearly 150% year on year. In its annual report, the company stated it doesn’t expect to be profitable for quite some time as it is primarily focused on growing the business. Why I bought Invitae stockWeighing everything up, I decided to start a small position in the company. Growth stocks like Invitae tend to be highly volatile, but due to what I perceive as the company’s great long-term potential, I can deal with that. For example, I would be willing to take a test if I can discover that I may be more at risk of diabetes or heart disease, so I think the market for Invitae could be massive. With its three-year revenue gain of 226.8%, I am happy to take the chance on this exciting company even though it has not yet proven its path to profitability. Joe Clark | Monday, 15th March, 2021 | More on: NVTA I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. 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