ARKQ - Down 26% This Cathie Wood Holding Is a Screaming Buy Now
2023-05-12 05:33:00 ET
Cathie Wood loves positioning and modeling technology company Trimble (NASDAQ: TRMB) . It's one of the most significant holdings in the ARK Autonomous Technology & Robotics ETF (NYSEMKT: ARKQ) and the ARK Space Exploration & Innovation ETF (NYSEMKT: ARKX) . It's not hard to see why, as the stock offers a compelling mix of growth and value. Here's why Trimble is an outstanding stock to buy, even though the stock is down 26% over the last year.
The Wall Street analyst consensus for Trimble has earnings before interest, taxation, depreciation, and amortization ( EBITDA ) growing at a 10% compound annual growth rate to 2025. Furthermore, the stock's cash flow is growing such that, based on the current market price of $48 and Wall Street estimates, Trimble will trade at 18 times its free cash flow (FCF) for 2023 and 15.6 times FCF in 2024. They are very cheap multiples for a company with such attractive end markets (more on that in a moment).
As such, the Wall Street consensus price target is about 16% higher than what the stock trades at.
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Down 26%, This Cathie Wood Holding Is a Screaming Buy Now