In honor of International Women’s Day, four stocks that Sarah Ketterer (Trades, Portfolio)’s Causeway Capital Management and Catherine Wood (Trades, Portfolio)’s ARK Investment Management agree on as of the fourth quarter of 2022 are JD.com Inc. (JD, Financial), General Electric Co. (GE, Financial), Teradyne Inc. (TER, Financial) and InMode Ltd. (INMD, Financial) according to the Aggregated Portfolio of Gurus, a Premium feature based on 13F equity portfolio filings.
Recognized annually on March 8, International Women’s Day celebrates the social, economic, cultural and political achievements of women around the globe. The day also calls for accelerating gender parity.
Ketterer
Prior to co-founding Los Angeles-based Causeway Capital, Ketterer worked as a managing director and co-head of Hotchkis & Wiley’s international and global value team. She also serves as a member of the Standard University board of trustees.
Causeway Capital seeks global and international stocks through quantitative and value-oriented screeners. The firm gives each stock a risk score based on the additional volatility it gives to the portfolio and selects the stocks that offer the highest expected risk-adjusted return.
As of December 2022, Causeway’s $3.44 billion 13F equity portfolio contains 84 stocks with 12 new positions and a quarterly turnover ratio of 9%. The top four sectors in terms of weight are industrials, technology, consumer cyclical and financial services, representing 34.26%, 18.50%, 15.92% and 10.14% of the equity portfolio.
Wood
With over 40 years of experience, Wood founded ARK Investment in 2014 to focus solely on disruptive innovation while adding new dimensions to research. The St. Petersburg, Florida-based firm seeks to identify large-scale opportunities in public markets resulting from technological innovations centered around DNA sequencing, robotics, artificial intelligence, energy storage and blockchain technology.
As of December 2022, ARK Invest’s $11.54 billion 13F equity portfolio contains 230 stocks, with four new positions and a quarterly turnover ratio of 3%. The top four sectors in terms of weight are health care, technology, communication services and consumer cyclical, accounting for 37.92%, 36.51%, 10.90% and 9% of the equity portfolio.
Investors should be aware 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but they can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
JD.com
Causeway and ARK Invest have a combined weighting of 1.44% in JD.com (JD, Financial).
Shares of JD.com traded around $46.82, showing the stock is significantly undervalued based on its price-to-GF Value ratio of 0.40 as of Wednesday.
The Beijing-based e-commerce company has a GF Score of 72 out of 100 based on a growth rank of 9 out of 10, a financial strength rank of 7 out of 10, a profitability rank of 5 out of 10, a GF Value rank of 4 out of 10 and a momentum rank of 1 out of 10.
JD.com’s financial strength ranks 7 out of 10 on several positive investing signs, which include a high Altman Z-score of 3.08, a cash-to-debt ratio that outperforms approximately 79% of global competitors and a Beneish M-score that suggests little or no earnings manipulation.
General Electric
The two firms have a combined weighting of 1.24% in General Electric (GE, Financial).
Shares of General Electric traded around $86.36, showing the stock is modestly overvalued based on its price-to-GF Value ratio of 1.30 as of Wednesday.
The Boston-based industrial conglomerate has a GF Score of 56 out of 100 based on a rank of 5 out of 10 for profitability and financial strength, a momentum rank of 6 out of 10 and a rank of 1 out of 10 for growth and GF Value.
GE’s growth ranks 1 out of 10 on several warning signs, which include a three-year free cash flow decline rate that underperforms approximately 62% of global competitors. The company’s revenue per share has declined by approximately 6.5% per year on average over the past five years, while its future estimated revenue decline rate of 2.54% underperforms approximately 93% of global industrial products companies.
Teradyne
Causeway and ARK Invest have a combined weighting of 1.02% in Teradyne (TER, Financial).
Shares of Teradyne traded around $102.82, showing the stock is fairly valued based on its price-to-GF Value ratio of 0.95 as of Wednesday.
The North Redding, Massachusetts-based semiconductor equipment company has a GF Score of 94 out of 100 based on a momentum rank of 10 out of 10, a GF Value rank of 6 out of 10 and a rank of 9 out of 10 for financial strength, profitability and growth.
Teradyne’s financial strength ranks 9 out of 10 on several positive investing signs, which include a high Altman Z-score of 11.47 and an interest coverage ratio that outperforms approximately 76% of global competitors.
InMode
The two firms have a combined weighting of 0.07% in InMode (INMD, Financial).
Shares of InMode traded around $32.97, showing the stock is significantly undervalued based on its price-to-GF Value ratio of 0.66 as of Wednesday.
The Israeli surgical aesthetic and medical treatment company has a GF Score of 96 out of 100 based on a profitability rank of 8 out of 10 and a rank of 10 out of 10 for growth, momentum, GF Value and financial strength.
InMode’s financial strength ranks 10 out of 10 on several positive investing signs, which include a high Altman Z-score of 22, a high interest coverage ratio of 215 and a cash-to-debt ratio that is outperforming approximately 85% of global competitors.
