์๋ฌธ ๋ณด๊ธฐ
So, although Kathy Wood is often criticized for investing in higher risk, more speculative types of companies, she's still one of the most popular investors to follow for two main reasons. One is that she focuses on more disruptive companies that she believes can shape the future of technology, which can be a little more fun and interesting to look at.
And number two, my favorite thing about her is that she posts every single trade she makes on a daily basis, which is way more transparent than any other institutional investor or big hedge fund out there. And as such, it's always interesting to see what she's been buying, which in today's video here in Ala's World of Stocks, we're going to be running through five of the largest purchases that she made over the past month, which by the way, for just a single month, she spent well over $100 million.
It's quite a lot. and I tried to specifically pull out some of the more interesting pickups from her that were also among her largest. So, I hope you guys enjoy this. Let's jump into the list here. I'll give my opinion on each one of these stocks. I'll even rank them from best to worst, too based on that opinion.
All right, let's go ahead and jump into it. So, starting with the smallest purchase of the bunch, we have an equipment giant in Deer and Company, ticker symbol DE, which across all her ETFs, Kathy purchased over $2 million worth of the stock throughout last month. Now, for the very few of you that have never heard of this company, uh, Deer of course makes heavy machinery for agriculture, construction, and forestry.
It's very popular equipment that they make. They're very wellknown in terms of their brand, but it definitely doesn't sound like your typical Kathy Wood stock, right? I mean, deer is probably uh not what most people think of when they hear disruptive technologies or artificial intelligence or gene editing, biosciences, types of stocks that Kathy usually uh preaches and invests in.
But I will say that the company has actually been kind of quietly leveraging technologies to stay ahead of the curve like in their GPSg guided autonomous tractors that can actually plant and harvest with minimal human input or in using advanced machine learning algorithms to optimize crop spraying based on realtime field data which is helping boost their services revenue as they increasingly shift towards a more recurring revenue model that offers subscription ion based software and predictive analytics tied to their equipment sales.
So helping them diversify uh pretty well in that sense. And look, some of these innovations really paid off for them too, especially during the pandemic years when you know demand was soaring at that time. But coming off of that, the macro environment, especially for farming, has really turned much more challenging in the face of lower commodity prices, large inflation, and high interest rates that made large equipment purchases more difficult for both large-scale farmers as well as even more casual customers.
Still, it appears that deer is back on track here on a growth trajectory once again with both sales and profits expected to start climbing again in the coming years. Uh with even tariffs not being as big of a concern as some of their peers given deer's large focus on US manufacturing. Now, that's not to say that the supply chain for this large global player will be completely immune to tariffs, but at least here in the States, more than 75% of all American products sold uh from deer are actually manufactured within the country, too, which they're actively expanding on with another $20 billion investment plan over the next decade to build and expand on their facilities throughout the country even further.
As good as all of that sounds though, uh the stock price has already climbed by about 20% this year. And it continues to trade near a record high after soaring by over 500% in the past decade, leaving the valuation around 30 to 50% more expensive than the sector and their own 5-year average. While the dividend yield has shrunk to only around 1%, which is nowhere near high enough to get me excited for it, even with the more attractive growth metrics that it does carry.
In all though, I just think that the stock is too expensive and the dividend is too low for what is otherwise, I'll grant you a very stable stock to invest in, but not a very exciting one. And I'm actually pretty surprised to find it here among Cathy's list. Uh when you know, usually we'd find much more speculative or more tech kind of based companies.
But hey, I'll be nice here because they do have a pretty good track record. I'm going to rank them around the middle for now at number three until we see what else is on this list. Well, coming up next, we have a longtime favorite of Cathy's in Pager Duty, ticker symbol PD, which uh Kathy through Arc Invest added close to $9 million of in July.
Now, when it comes to Pager Duty, their biggest offering is really a software platform that basically helps organizations detect and respond to critical system issues and incidents. On top of that though, they also help these companies consolidate their software and automate their work using artificial intelligence to achieve faster task completions while also reducing costs which they advertise can be as high as 99% and 50% respectively.
And look, these services are in such high demand, especially as the world becomes more digital and techn technologically advanced that PD is now being used by over 30,000 companies worldwide. And although they're still a relatively young company, I think they were founded like in 2009. And they have a history of losses, they do seem to be moving in the right direction and steadily towards profitability, which analysts expect to turn positive on Gap EPS starting next year.
Still, competition is a little crowded in the space where PD has to compete with larger players like Atlassian and Service Now. something that may prove challenging when their growth does ultimately depend on, you know, winning those larger enterprise customers as they really try to expand on their product suite, too.
But unlike deer, PD's stock has at least fallen over the years, currently down over 67% since IPO, and that's left the valuation much more attractive with forward PE and PEG ratios that are much lower than the sector 2. Part of the reason why is because the market cap is still relatively small at about 1.4 billion coupled with the high EPS growth that helps to lower all of those valuation metrics.
And although their revenue growth has slowed way down to just a singledigit rate, their sales are at least still breaking new record highs, you know, year after year. Now, I get that deer is obviously the much safer, more reliable, maybe more popular kind of stock to invest in, but they don't really interest me as much.
Whereas PD seems to have more upside potential, too, at the current price, while also having the more interesting business, at least in my opinion. So, I'm actually going to bump uh deer down one spot to put PD in its place at number three. Let me know if you agree or disagree with that ranking down below, though.
Up next though, we have a much better, in my opinion, much more attractive overall stock in the AI chips leader, Nvidia. Ticker symbol NVDA, who Kathy purchased close to $12 million of in the past month. Now, this one hardly needs an introduction. Nvidia is the current undisputed king of AI chips and its stock has been a generational winner having climbed more than 30,000% in the past 10 years.
Uh making it the first company ever to break north of a $4 trillion market cap where it's valued even higher than the likes of Microsoft, Apple, Amazon, and other tech giants too. And there's no doubt that Nvidia's dominance in data center GPUs has really generated life-changing returns for early investors.
And thus, I can totally understand why anyone looking at the stock today at these extremely high, you know, absurdly high levels would be very hesitant to be buying the stock still uh right now. And yet, I am still left here feeling like the best is yet to come for this company and the stock. Because for as much progress as they've already made so far, I actually think that the world is barely starting to enter the golden age of artificial intelligence where big tech giants will be spending hundreds of billions of dollars every single year in order to compete and really keep up with each other, which should result in them upgrading their monumental size data centers every year with new hardware and even software that Nvidia does provide.
In fact, according to Morgan Stanley researchers, they estimate that AI will eventually create a $40 trillion addressable total addressable market, while McKenzie projects that data center investments alone will top 7 trillion within the next 5 years. And given that Nvidia already commands by far the most market share for the chips used by them, well, there's no reason to think that a giant amount of that money will trickle down directly into Nvidia's pockets.
Hence why analysts project both sales and profits to continue soaring by unbelievable amounts for their already massive size in the years to come. And as such, their PEG ratio is actually still somehow cheaper than the sector and their own 5-year average by a whopping 20% if you can believe it. I know the actual share price is high, but I still think that they have more room to run here over the longer term.
So, they're going to get the number one ranking from me. All right. While Nvidia is a much more popular pick, uh, stock number four is actually one that you may have never even heard of, and it's one that I've actually never even covered before myself on the channel, but that is Veracite, ticker symbol VC YT, which Kathy purchased close to $15 million of in the past month.
Now, for as unknown as they might be, Veracite is actually a very typical Kathy Wood type of stock that we would expect from her in that this is another genetics biotech one that focuses though more specifically on diagnostics as they develop tests that help doctors diagnose diseases by analyzing gene expression patterns.
While the stock has had large moments of success though, particularly during the pandemic years where they saw higher demand and really interest for genomic testing, more recently though, it's been falling off a cliff, having already lost over 40% of its value just this year alone. Long term though, I can definitely understand why Kathy would want to bet on a stock like this given that the company is actually pretty well diversified within their primary focus of just selling tests as they can sell tests for just about anything they want including all types of cancers and diseases which unfortunately is uh something that I don't really expect to disappear anytime soon.
In fact, I'd wager that testing will only become more important for these things for things for things like early detection and early treatment which can often times save lives by the way. So, it is it is a very important field of research and development and and for products services. And so uh as more physicians adopt these tests, Barasite should also benefit from recurring revenues and a growing installed base of its diagnostics platform that integrates several technologies into one like RNA se sequencing, genomic classifiers, and AI powered bioinformatics that help laboratories process gene expression data much quicker and more efficiently than than uh other traditional methods.
All of which is helping them to not only continue growing their sales by a double-digit rate, although that growth has come down significantly, but like Pedager duty, Veracite has also turned a corner on their profitability with positive EPS last year that analysts think will actually continue growing in the years to come too.
Not only does that make this a much easier sell to me for what are oftent times, you know, riskier biotechs in Woods portfolio, but it also lowers their PG ratio to just a measly 0.5, which is almost 70% cheaper than the sector median. And I got to say, Veracite at that valuation looks pretty attractive to me here on the dip.
Now, I do already own I would say too many biotechs in my own portfolio as it is. But, uh, if I didn't and I was looking for maybe a little more speculative one, this would be high up on my list. I actually think it looks pretty attractive here. And in terms of ranking it, I would put it right up there with Pager Duty.
I think they're tied. If I have to choose one, I would probably give the slight edge though to Veracite because of the lower PEG ratio. So, I'll bump them up to number two. I'm going to put Veracite at ranking number two. But finally guys, that's going to leave us with the largest purchase of the bunch.
And that was in none other than probably the one stock that has made Kathy more famous than any other because of really her strong conviction for it, even through all the bumps and bruises along the way. And that is of course Tesla, ticker symbol TSLA, which Kathy purchased more than $115 million more dollars of in the past month, making it clear that she is still very much so standing behind this EV maker, even with all the new hurdles that have really been popping up more recently.
those being a number of challenges, but arguably the biggest being the current slowdown of growth as well as uh looming expiration of EV tax credits and also even some political and social backlash on Elon Musk from the kind of on and off again support for President Trump and his political stances and all that type of stuff that, you know, just always kind of makes the headlines these days and a lot of people um take very seriously and uh can be quite controversial.
right now. Uh just a couple years ago, this was really a company that was on fire, I'd say. Uh generating lots of growth on both the top and bottom line. Uh but more recently, those results have been underwhelming to say the least. Last quarter, for example, saw auto deliveries fall by 14% year-over-year.
And given that automotive revenue fell by even more, it's likely that Tesla had to lower their vehicle prices because of weak demand, which is not a good sign. And it actually sent their margins falling even lower, too. Even their fast growing energy generation and storage business managed to fall by 7% as well, while Musk warned that even the next few quarters could be rough, too.
Yet, despite the gloomy near-term outlook, Wood is betting on Tesla's long-term vision, one that capitalizes on autonomous driving and robotics, which are markets that could be worth trillions given enough time. As such, Tesla is really going allin on these technologies now, having recently launched a robo taxi service in Austin with the hope to expand coverage to half of the country by the end of the year.
Although regulatory hurdles will very likely get in the way of much of that. Still, Musk is also promising the production of somewhere around a 100,000 humanoid robots per month within the next 5 years, which he believes will be a $10 trillion opportunity long-term as Optimus gets utilized by not just your average, you know, customer consumer, but especially for factory and office work that can dramatically cut down overhead costs for businesses around the world.
Time will tell how successful these opportunities will truly be, but at the moment, Wall Street doesn't seem very convinced on them as they've sunk the stock by over 20% this year and close to 40% from its highs. In her last price target, though, Wood predicted that Tesla will climb to as much as $2600 per share in the next 5 years, which would represent a staggering 760% upside from the current price of only around 300.
Now, I personally don't see it climbing by that much so quickly, and I've actually cashed in some of my profits on the stock. I was up a lot and I sold some of it. But I'm also holding on to still a decentsized chunk of my stock for the long term, too, just because uh I am still optimistic about their future, all the potential they have in these various technologies like AI, autonomy, robotics, energy, and more.
And as such, I'm still going to rank them number two here above the other stocks that I do feel are even riskier than Tesla. Although I admit that my faith in Tesla's stock has been shaken this year. And uh we'll just have to wait and see how it goes, but kind of just hoping for the best. All right, guys.
That's my thoughts on all of these stocks. What do you all think? I'd love to hear your thoughts. Do you agree or disagree with my rankings? Let me know down below. But I hope you enjoyed the video either way. and I will catch you in the next one. All right, take care my friends. Bye-bye.
๋๊ธ 0