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The Best Cathie Wood Stocks to Buy With $300 Right Now

By Keith Speights - May 21, 2021 at 4:52AM

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Each of these three stocks is trading at a discount compared to earlier this year.

Cathie Wood has access to billions of dollars when she buys stocks for her ARK Invest exchange-traded funds (ETFs). It's not unusual for her ETFs to scoop up tens of thousands or even hundreds of thousands of shares of a single stock in one day.

The good news is that you don't need a lot of money to invest in the same stocks that Wood likes. You can follow in the ARK Invest CEO's footsteps with just a few hundred dollars. Here are the best Cathie Wood stocks to buy with only $300 right now.

Young woman holding finger over touchscreen tablet

Image source: Getty Images.

Teladoc Health

Less than $140 will buy you one share of the leader in virtual care -- Teladoc Health (TDOC -2.48%). And you can get it at a discount compared to earlier this year -- the healthcare stock is more than 50% below its 2021 high.

One reason for that share price slide is that Teladoc's growth rate is slowing. The company had 3.19 million visits in the first quarter, and it's expecting to average only a little above that level over the next three quarters. However, it should be no surprise that its growth rate is plateauing after the explosion in telehealth visits last year due to the COVID-19 pandemic.

Teladoc should have plenty of room to grow further in the long run. I especially like the company's opportunities to cross-sell its products and services to existing customers. It also has tremendous potential outside of the U.S.

Wood remains a big fan of Teladoc despite its year-to-date stock performance. Three of her ETFs -- ARK Genomic Revolution ETF, ARK Innovation ETF, and ARK Next Generation Internet ETF -- have added to their positions in the virtual care stock in May.

Unity Software

Picking up a share of Unity Software (U -1.84%) will cost you around $90. Like Teladoc, this stock has sold off significantly over the last three months in part due to the company's slowing growth.

We're not talking about sluggish growth, though. Unity projects that its revenue will jump by close to 30% in 2021. Although that would be lower than its 43% revenue growth last year, it's not all due to the company. Unity anticipates a headwind of around $30 million related to Apple's implementation of changes to its Identifier for Advertisers (IDFA). 

Unity stands as the top platform for creating virtual reality (VR) content. It's arguably the best VR stock on the market right now. Obviously, gaming is the biggest market for Unity. However, it also has customers in other industries, including auto manufacturing and construction.

Two of Wood's ETFs have been actively buying shares of Unity in May -- ARK Innovation ETF and ARK Autonomous Technolgy & Robotics ETF. I suspect those purchases will pay off over the long run.

Pinterest

After buying one share each of Teladoc and Unity, you'd have around $70 of your initial $300 remaining. That's more than enough to add a share of Pinterest (PINS 0.31%) to your portfolio. The image-sharing social media company's stock currently trades at less than $60 per share.

I'm probably going to sound a bit like a broken record here, but Pinterest shares are trading more than 30% below their 2021 high. Part of the problem for the company is that its user growth is slowing. And much of its growth is now coming from international markets, which generate lower average revenue per user (ARPU).

However, there's a pretty good argument to be made that Pinterest's greatest opportunity lies outside the U.S. The company has already increased its ARPU for international users. It's currently only displaying ads in 29 countries. Pinterest clearly has a major revenue growth runway ahead of it in international markets.

Of these three stocks, Pinterest is the only one that Wood has been selling instead of buying. ARK Next Generation Internet ETF has sold over 1 million shares of Pinterest so far this month. However, while the company doesn't rank as highly among Wood's favorites as it once did, my view is that it's still a solid pick for long-term investors.

Keith Speights owns shares of Apple, Pinterest, and Teladoc Health. The Motley Fool owns shares of and recommends Apple, Pinterest, Teladoc Health, and Unity Software Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Pinterest Stock Quote
Pinterest
PINS
$22.56 (0.31%) $0.07
Apple Inc. Stock Quote
Apple Inc.
AAPL
$174.15 (-0.23%) $0.40
Teladoc Health, Inc. Stock Quote
Teladoc Health, Inc.
TDOC
$35.06 (-2.48%) $0.89
ARK ETF Trust - ARK Innovation ETF Stock Quote
ARK ETF Trust - ARK Innovation ETF
ARKK
$47.50 (-1.10%) $0.53
Unity Software Inc. Stock Quote
Unity Software Inc.
U
$51.14 (-1.84%) $0.96
ARK ETF Trust - ARK Next Generation Internet ETF Stock Quote
ARK ETF Trust - ARK Next Generation Internet ETF
ARKW
$59.66 (-0.93%) $0.56
ARK ETF Trust - ARK Genomic Revolution ETF Stock Quote
ARK ETF Trust - ARK Genomic Revolution ETF
ARKG
$38.16 (-1.24%) $0.48
ARK ETF Trust - ARK Autonomous Technology & Robotics ETF Stock Quote
ARK ETF Trust - ARK Autonomous Technology & Robotics ETF
ARKQ
$58.18 (-0.10%) $0.06

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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