Cathie Wood Pours Millions Into These 2 Stocks, Analysts Say They Have Strong Upside Potential — Here’s Why You Should Pay Attention

Cathie Wood’s investing philosophy is based on unwavering conviction in a portfolio heavily favoring high-growth names with disruptive qualities. But against an economic backdrop of soaring inflation and high interest rates, that strategy wilted during 2021 and 2022.

However, Wood’s Ark Invest’s flagship ARKK fund appears to have got its mojo back this year, and looking ahead to the post-high rate landscape, that is something Wood expects will continue.

“The fear of rising interest rates hurt our strategy, and then the actuality or the reality of rising rates last year really hurt our strategy,” Wood recently said. “This year, we’ve started outperforming, and I think it is because investors are looking over the top of these interest rate increases, anticipating their end, and ultimately, their decline.

“If we’re right,” she goes on to add, “disruptive innovation is going to cause a lot of deflation. And that’s a good thing. Deflation caused by disruptive innovation will cause an explosion in the growth rates of units in the disruptive innovation space. So we think we’ve been through the worst of it.”

If Wood is correct here, then ‘disruptive innovation’ might be the way forward. With that in mind, we decided to check out a couple of those type of names Wood has been busy loading up on recently.

In fact, Wood is not alone in thinking these are worthwhile additions to a portfolio. According to the TipRanks database, certain Street analysts see big gains ahead for the pair. Let’s see why investors should pay attention here.

Archer Aviation (ACHR)

Speaking of disruptive innovation, let’s delve into the realm of urban air mobility. Archer Aviation is an innovative electric vertical takeoff and landing (eVTOL) aircraft manufacturer and technology company. Archer is a key player in the emerging urban air mobility (UAM) industry, with a mission to revolutionize urban transportation by developing sustainable and efficient electric aircraft designed for short-distance, urban air travel.

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It’s still early days for this…

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