Cathie Wood Goes Shopping: 3 Stocks She Just Bought
Key Points
Cathie Wood added to her stakes in Broadcom, Deere, and Archer Aviation on Thursday.
Broadcom is a seven-bagger over the past five years, but it's still growing faster than its forward earnings multiple.
Archer Aviation has fallen 40% from its October highs, but the sky could be the limit for its long-term prospects.
- 10 stocks we like better than Broadcom ›
Cathie Wood is winning again. The co-founder, CEO, and CIO of Ark Invest, turned heads in 2020 by generating monster returns for her family of exchange-traded funds (ETFs) on the strength of her aggressive growth investing style. She did it again last year. Her largest fund's 35% gain more than the doubled the market average.
She's making moves early in 2026. Ark bought shares of Broadcom (NASDAQ: AVGO), Deere (NYSE: DE), and Archer Aviation (NYSE: ACHR) on Thursday, adding to her existing stakes. Let's take a closer look at these three fresh buys.
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1. Broadcom
Broadcom may not be a household name outside of tech circles, but it would've been nice if it was well-known in your home over the past few years. The provider of semiconductor and tech infrastructure solutions has been a seven-bagger over the past five years. It is now the country's eighth most valuable stock, by market cap.
It's in the right place at the right time. Broadcom claims that more than 99% of global internet traffic crosses through some type of its technology, a great place to be during the artificial intelligence (AI) boom. Broadcom stock is responding to the opportunity.
Revenue failed to top 21% growth in each of the six years through fiscal 2023, consistently positive but clocking in with single-digit gains in half of those years. Revenue growth exploded with a 44% surge in fiscal 2024, before slowing to a 24% increase in the fiscal 2025 year that ended in November. It's stepping on the gas again.
Analysts see revenue accelerating in the new fiscal year, with a 51% jump to $96 billion. Those same Wall Street pros are modeling a 49% increase in earnings to reach $10.14 a share. Broadcom may not seem cheap at 33 times forward earnings, but right now it's growing faster than that multiple on both ends of the income statement.
One can also argue that Broadcom deserves a market premium because of its consistency. It's a trendy AI play now, but it has rattled off 16 consecutive fiscal years of revenue growth. It has boosted its dividend in 15 straight years. With nearly all roads on the information superhighway going through Broadcom, it's a ride Wood doesn't mind taking.
2. Deere
Wood is a fan of high tech, but it doesn't mean that she's afraid to get her hands dirty in the farm and heavy construction industry. Deere is a giant in the world of agriculture stocks, a global provider heavy machinery for the farming, commercial, and construction markets.
It's a smart play on the infrastructure needs worldwide, as well as the U.S. initiative to become more self-sufficient in food production and other products. Wood believes in Deere, even after posting disappointing guidance in its latest quarter. It warned that sales to large commercial farm operators would decline 20% in the year ahead. Analysts are still modeling a 2% increase in revenue this fiscal year on declining net income. It's not ideal, but Deere will be a leader in the inevitable turnaround.
3. Archer Aviation
Ark added to just five existing positions on Thursday, and two of them were in the electric vertical takeoff and landing (eVTOL) aircraft space. This is a market that is currently limited to just shuttling affluent passengers from metropolitan airports into the heart of traffic-riddled city centers or time-sensitive organ transplant shipments. It won't always be that way.
Archer has signed deals with the U.S. military and major air carriers for its high-tech flying machines, which can carry a limited payload on trips of 100 miles or less. It's going to be the official air taxi provider for the 2028 Olympic Games in Los Angeles, purchasing a small regional airport in the area to ensure it wins the gold in that moment.
It's currently a pre-revenue company, but it's expected to approach almost $1 billion in revenue by 2028 and achieve adjusted profitability a year later. Broadcom and Deere have beaten the market over the past year, but Archer is clearly a case of Wood trying to go bargain hunting. Archer Aviation stock has plummeted 40% since peaking three months ago. Its eVTOL aircraft can ascend in a tight space, and Wood has to believe that the stock will do the same.
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Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Deere & Company. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
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