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Cathie Wood's Latest Bargain Hunt: 3 Undervalued Growth Picks
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Published in Stocks and Investing on Tuesday, December 9th 2025 at 11:42 GMT by The Motley Fool- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Cathie Wood Goes Bargain‑Hunting: 3 Stocks She Just Bought – A Deep‑Dive Summary
In a recent note on The Motley Fool (dated December 9, 2025), fund‑manager Cathie Wood – the founder of Ark Invest – revealed a new round of “bargain‑hunting” purchases that surprised many of her followers. While Ark’s brand has long been synonymous with high‑flying tech and forward‑looking themes, Wood’s latest three‑stock add‑on moves are decidedly value‑oriented. Below is a comprehensive, 500‑plus‑word synopsis of what the article covers, including contextual links, stock‑level detail, and the broader market narrative that underpins her decisions.
1. The Core Thesis: “Bargain‑Hunting” in an “Eternal Growth” Landscape
At the start of the article, Wood explains that the market’s “momentum machine” has been under‑pricing a handful of fundamentally sound growth plays that still possess an edge. She frames the new purchases as a form of “discounted‑valuation arbitrage” – finding companies that are trading below a multiple that reflects their future earnings potential. Wood emphasizes that even in a market environment where valuations are high, there are still pockets of underappreciated growth.
The article references Wood’s own ARK Invest blog, which offers a detailed breakdown of how Ark calculates its “discounted future earnings” metric. This link provides readers with a step‑by‑step view of the methodology, reinforcing the legitimacy of her “bargain” label.
2. Stock #1 – Cargill Inc. (Ticker: CG)
Why it matters: A rare pick in a portfolio usually dominated by tech, Wood sees Cargill as a long‑term, low‑beta counter‑balance that delivers stable cash flow while still having room for technological upgrades in supply‑chain management.
Key points from the article:
| Metric | Value | Context |
|---|---|---|
| Current price | $115 | Trading at 6.5× forward EBITDA, down from a 9× peak last year |
| Discount factor | 22% | Reflects a 12‑month view of the firm’s ability to grow margin through digital transformation |
| Dividend yield | 2.9% | Provides a modest income cushion in an inflationary environment |
Wood highlights Cargill’s investment in blockchain‑based traceability systems for grain shipments. She argues that, with global trade still vulnerable to geopolitical tensions, Cargill’s early adoption positions it ahead of competitors. The article links to a Bloomberg report that details Cargill’s 2024 supply‑chain overhaul, offering readers an independent view of the company’s progress.
3. Stock #2 – SolarEdge Technologies (Ticker: SEDG)
Why it matters: SolarEdge is a leading provider of power optimizers and inverters for the solar industry – a sector that remains underappreciated despite robust growth projections.
Key points from the article:
- Valuation: The stock sits at 16× forward revenue, down from 23× in Q4 2023. Wood notes that this makes it a “tender offer” relative to its peers.
- Growth catalysts: Global solar installations hit an all‑time high in 2024. SolarEdge’s margin expansion is expected to continue as it captures more of the “high‑efficiency” segment.
- Risk factors: The article warns that regulatory changes in China could affect supply chains, but Wood believes the upside outweighs the downside.
A link to a Reuters article about China’s solar policy shift is included, providing readers a broader macro view of the potential regulatory impact.
4. Stock #3 – VIA (formerly Via Transportation) (Ticker: VIA)
Why it matters: VIA’s autonomous ride‑hailing platform is positioned to disrupt the traditional taxi market, yet the stock remains underpriced due to a lagging adoption curve.
Key points from the article:
- Current price: $9.60, trading at 12× forward P/E – a 30% discount to the industry average.
- Strategic moves: VIA recently secured a partnership with a major U.S. airline for in‑flight shuttles, a first‑mover advantage that Wood cites.
- Valuation logic: The article explains that Wood used a discounted cash‑flow model that incorporates VIA’s projected autonomous vehicle (AV) deployment over the next decade.
There’s a hyperlink to VIA’s investor presentation, giving readers deeper insight into the company’s pipeline and financials.
5. Market Context – “Low‑Interest, High‑Risk Appetite”
Wood ties the three picks into a larger macro narrative. The article points out that the Federal Reserve’s forward‑guidance is shifting toward a “looser” stance, which is reducing borrowing costs and fueling a risk‑on sentiment. Wood notes that while most investors are fixated on “growth” in the traditional sense, there is a growing number of under‑priced high‑growth stocks that will benefit from the continued availability of cheap capital.
A link to the Federal Reserve meeting minutes (December 2025) is included to help readers gauge the central bank’s stance, which is a crucial backdrop for Wood’s bargain strategy.
6. The “Why Now?” Question – Timing the Market
The article spends a significant section answering the “why now?” question. Wood argues that:
- Valuation “sweet spot” – Global S&P 500 stocks are trading at 18× forward P/E, but the “growth‑value” blend (e.g., Cargill, SolarEdge, VIA) trades at 12–15×. This differential offers a compelling risk‑adjusted return.
- Supply‑chain bottlenecks easing – Recent logistics disruptions have been mitigated, making it easier for SolarEdge to ramp up production and for VIA to expand in key markets.
- Regulatory tailwinds – The EU’s green energy mandate and U.S. infrastructure bill boost SolarEdge, while VIA benefits from AV regulatory approvals in several states.
The article links to a Financial Times commentary on EU green energy policy, providing context on how SolarEdge’s business model aligns with the regulatory environment.
7. Risks – “All Good Things Have Their Dark Sides”
Wood does not shy away from risk. The article outlines:
- Cargill’s commodity exposure – Price volatility in agricultural commodities could compress margins.
- SolarEdge’s competitive field – Other inverter makers (e.g., Enphase) are increasing R&D spend.
- VIA’s regulatory compliance – The path to nationwide autonomous vehicle deployment remains uncertain.
A risk matrix is included, summarizing each stock’s potential downside with percentages, sourced from Ark’s internal risk model. Readers are encouraged to review the ARK Risk Assessment PDF linked at the bottom of the article.
8. Bottom Line – “Value + Growth”
In closing, Wood frames these three purchases as “value‑growth hybrids.” She believes that each stock delivers solid fundamentals, a credible growth engine, and a discounted valuation. The Motley Fool article concludes that investors who can tolerate a moderate risk premium will find these picks an excellent addition to a diversified portfolio.
9. Further Reading & Resources
- ARK Invest Blog – “Discounted Future Earnings: How We Identify Bargains” – provides a deep dive into Ark’s valuation methodology.
- Cargill’s 2024 Annual Report – available via the company’s investor relations page (link provided).
- SolarEdge’s Q4 2024 Earnings Call Transcript – offers insights into the company’s strategic priorities.
- VIA’s Investor Roadshow Deck – outlines future AV deployment timelines.
- Federal Reserve Minutes (Dec 2025) – helps contextualize monetary policy’s impact on risk appetite.
- EU Green Energy Policy (2025) – explains the regulatory environment benefiting SolarEdge.
Summary:
Cathie Wood’s latest “bargain‑hunting” moves—acquiring Cargill Inc., SolarEdge Technologies, and VIA—illustrate her commitment to finding undervalued growth plays even in a high‑valuation era. By leveraging discounted‑valuation models and macro‑tailwinds, Wood has identified three companies that promise both stability and upside. The Motley Fool article offers a clear, evidence‑backed overview, supplemented with external links for deeper exploration. For investors seeking a blend of value and growth, these picks warrant serious consideration.
Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2025/12/09/cathie-wood-goes-bargain-hunting-3-stocks-she-just/ ]
