2 Cathy Wood stocks that could skyrocket in 2024, according to Wall Street

Thematic investing has become incredibly popular since 2019. At the center of this movement is Ark Invest, a line of exchange traded funds (ETFs) run by renowned investor Cathie Wood. The central theme of Wood’s Ark Invest is confusion. Ark’s goal is to find and invest in companies with technology that can disrupt the status quo. As a result, Wood’s ETFs often buy companies operating in the areas of self-driving cars, genomic medicine, and next-generation medical technologies.

True disruptions are extremely rare, but that fact hasn’t stopped some Wall Street analysts from offering notable price targets for some of Wood’s holdings. 908 device (a large amount of 1.66%) and beam therapy (beam -1.69%) These are representative examples. The consensus price targets for these two ARK holdings imply upside potential of 49% and 65%, respectively. Can you buy these two small-cap healthcare stocks? Let’s take a look under the hood to find out.

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908 device

908 Devices specializes in creating novel devices for the analysis of chemicals and biomolecules. The company utilizes unique mass spectrometry technology that can quickly and accurately detect molecules in complex samples. Mass spectrometry can reveal the identity and quantity of molecules in complex mixtures such as blood, urine, soil or air.

The company’s devices can be used for a variety of purposes, including drug development, bioprocessing, forensic investigations, and threat detection. There are two types of devices: portable and desktop. Handheld devices are portable and easy to use in the field, while desktop devices are more accurate and versatile. Both types of devices can provide high-quality results in minutes, compared to weeks for traditional laboratory-based methods.

What are the risks? 908 Devices is in the early growth stage of its life cycle, so it may take a few years for the company to generate significant free cash flow on a regular basis. Although the company has sufficient cash to sustain operations during this period, the uncertain nature of its business model is a significant risk factor that potential investors should carefully consider before purchasing its shares.

beam therapy

Beam Therapeutics specializes in gene editing. It uses a technique called native editing, which is a more precise and versatile form of CRISPR.

The company recently announced a strategic update prioritizing three programs: BEAM-101 for severe sickle cell disease, a rare blood disorder that affects red blood cells; BEAM-302 for alpha-1 antitrypsin deficiency, a liver protein deficiency that can cause lung and liver damage; BEAM-301 is indicated for glycogen storage disease, an inherited enzyme deficiency that affects glucose metabolism.

Beam has the potential to become a leading gene editor for alpha-1 antitrypsin deficiency and glycogen storage diseases, which could provide significant growth opportunities. Meanwhile, the company faces fierce competition in the sickle cell disease space from traditional treatments as well as other gene therapies.

Although Beam is still in the early stages of clinical development for all of its programs, it has a very strong financial position, with cash and cash equivalents of over $1 billion as of the end of its most recent quarter. As a result, biotech companies shouldn’t have to tap public markets to fund their clinical pipelines any time soon.

What are the risks? One of the most important risks is the extension of the company’s schedule. It is expected that it will take two to three years for Beam to file regulatory filings. As a result, shareholders must be willing to hold these stocks for the long term.

This means the company can develop a best-in-class gene editing platform that could bring effective treatments for numerous life-threatening diseases to market. So Beam’s stock should appeal to growth investors who want to take a long-term view.