Straight from Benzinga newsdesk, host Michael O'Connor brings you the market news and stocks to watch.
Subscribe to our Stocks To Watch Newsletter here : https://go.benzinga.com/sales-page-187126583617110118712659
Today's Stocks: $TSLA $PATH $TRMB $KTOS $IRDM
Host: Michael O'Connor , Benzinga Newsdesk
Reach out to Michael at michaeloconnor@benzinga.com
Subscribe to our Stocks To Watch Newsletter here : https://go.benzinga.com/sales-page-187126583617110118712659
Today's Stocks: $TSLA $PATH $TRMB $KTOS $IRDM
Host: Michael O'Connor , Benzinga Newsdesk
Reach out to Michael at michaeloconnor@benzinga.com
Category
🗞
NewsTranscript
00:00 Good morning, Zinger Nation. Welcome back to your daily stocks to watch. Today is Monday,
00:09 August 7th, 2023. Welcome to a new week, everybody. Holy moly. It's already the first full week
00:18 in August. Time seems to be flying by. Hope everyone had a great weekend. I certainly
00:23 did. But I'm excited to get back into a good week and we are going to be having a good
00:29 week, folks. And we got some fun ideas for you today. After last week, we had a really
00:35 fun and really good episode on the ARK Innovation ETF. And we got a lot of positive feedback
00:41 from that. That's the most well-known of Cathy Woods, one of the legendary investors right
00:47 now in the innovation sector. That is her most popular ETF. But wanted to highlight
00:54 a slightly less well-known, slightly less popular to trade ETF. We had a lot of good
01:02 feedback on that. And most of the, I think all of the names from that list were very
01:06 widely known. But wanted to highlight some lesser known stocks, get you some ideas that
01:12 may not be very talked about on the street or wherever you're seeing stocks being talked
01:17 about. Wanted to get you some names that are not super common, a little bit smaller market
01:21 cap. And I think that the ARK Autonomous Technology and Robotics ETF is a really interesting one
01:29 to talk about and has a really interesting, some really interesting constituents. We're
01:33 going to dive into the top five holdings in the ARK Autonomous Technology and Robotics
01:38 ETF. That's ARKQ. And that's going to be our dive for the list today. Our five ideas are
01:46 going to be the top five holdings. And I think there's some pretty darn interesting names.
01:50 Some of that I never even heard of before. So certainly some good information to dig
01:56 into today. All right, we'll get going on the list now. Stock to watch number one is
02:03 Tesla. Classic. That's ticker T S L A. Number two, we've got UiPath. That's ticker path
02:11 P A T H. Number three, we've got Trimble Navigation with ticker T R M B. Stock to watch number
02:19 four is Kratos Defense and Security Solutions. That's ticker K T O S. And number five, we've
02:25 got Iridium Communications ticker I R D M. Some of these I've never, never, maybe I've
02:31 anecdotally heard them before, but not necessarily jumping out in the imagination, especially
02:36 compared to the last time last week when we did the innovation ETF, everything seemed
02:40 well known. These are some plays that I think are not going to be super talked about, super
02:45 well known, maybe a good couple of companies to look at. If you're looking for autonomous
02:50 technology and robotics companies that maybe be slipping under the radar, but starting
02:54 off with the company that is the least under the radar and good morning, Tony. Florida's
02:59 hope the temperature is not too hot, not too humid right now. Love Florida in the summertime.
03:04 Stock to watch number one, the most well known on the list and the most heavily weighted
03:09 in the ETF is Tesla. That's ticker T S L A over 13%, almost 13 and a half percent of
03:17 a weight for ARKQ. It's the big, the big name here. It's the big one. And I want to highlight
03:23 this because so Tesla, the biggest autonomous technology and robotics company in terms of
03:29 the way Cathie Wood is viewing the industry. We talked about this, I think a month ago
03:33 or so when Cathie sold out a big chunk of holdings out of general motors, which was
03:40 part of this ETF. It was a chunk from this ETF. I'm pretty sure that she sold out of
03:45 general motors, but still has some, I believe general motors is still on the list there.
03:51 I'm actually going to try and check that out in real time to see if I believe general motors
03:56 is still a constituent in autonomous technology, robotics ETF, but not, not as much as it used
04:01 to be. And Tesla as the number one holding, I don't know. I think this makes some sense.
04:08 Tesla with its infamous autopilot, whether you agree with all of the safety implications,
04:14 whether you're, you're totally happy with if you get in a Tesla and the driver puts
04:18 it on autopilot or you put it on autopilot. It's pretty fun. It's pretty wild. I have,
04:23 I have been in a friend's model three and he puts it on autopilot and I'll drive it
04:28 on autopilot. It's pretty darn crazy. It is one of the few really salient, really like,
04:35 Oh yeah, this is actual autonomous technology that you can encounter on a daily basis. Now
04:41 there are becoming more and more robo taxi companies. At least it seems like that's going
04:46 to be a reality in a large number of big cities pretty darn soon. So we're going to be encountering
04:51 that most likely soon here. But Tesla, as far as Cathie Wood is concerned for the ARCQ
04:59 technology and robotics, autonomous technology and robotics, constituent number one, that
05:03 makes some sense. But stock to watch number two, we've got UiPath that's ticker P A T
05:10 H or path, a nice easy ticker. And the company quote engages in the development and provision
05:17 of a software platform to automate business processes, serving public healthcare, telecommunication,
05:25 finance and banking industries. So it's task at automation across all sorts of different
05:32 things, accounts, payable automations, claims processing, contact centers, finance and accounting
05:37 automations. This is a very intriguing stock to look at a company that is super based down
05:45 on automating menial kind of regular everyday standard pushing emails and things tasks,
05:54 not to not to poo poo any of the any of the specific tasks, but making it more efficient
05:59 for the people who are working those jobs. Now some controversy there if you're automating
06:02 a lot of these things, especially with AI being the big buzzword that it's been the
06:07 last six months. Are there going to be job disruptions if companies like UiPath succeed?
06:13 Maybe, but at least for now UiPath originally IPO $65 and 50 cents a share back in April
06:20 of 2021, down over 75% from that original price. But in the last year, also down about
06:28 20%, but year to date up almost 25% up a little over 24% UiPath a pretty good year to date
06:36 player not as good as some of the other names that Kathy has picked before, especially in
06:41 that innovation ETF, we saw a lot of big movers there, but UiPath an intriguing opportunity
06:47 and definitely a stock to watch in this sector. Stock to watch number three, we've got Trimble.
06:54 This is an interesting company Trimble that's ticker T R M B. I had actually never heard
06:59 of this company before and it's got some interesting stuff. It quote engages in the provision of
07:04 positioning technology solutions. Sometimes they get a kick out of the way that companies
07:08 describe themselves on their boiler plates here, but they operate through buildings and
07:14 infrastructure, geospatial resources and utilities, transportation. They're attempting to automate
07:21 a large number of different things that kind of long haul trucking, field service management,
07:25 rail and construction logistics. They're doing all sorts of different things across the spectrum
07:31 of a multitude of different kind of heavy industry applications for their technologies
07:39 and pretty good over the past five years. A big spike in 2021, but up over 30, almost
07:47 38% of the past five years. Again, if we take down the year to date, not actually a huge
07:51 mover in either. Only 9%, only a little over 9%, one of the smaller winners in the year
07:58 to date category, but 100% an interesting one to watch up almost now it's fluctuating
08:05 right about 15% up in the past three months. That's Trimble. Stock to watch number three.
08:12 We've got Kratos defense and security solutions. Oh, real quick. I do want to say that Trimble
08:17 makes up 6.9% of the ARC queue constituent UI path at 7.66%. And now onto stock to watch
08:27 number four. We've got Kratos defense and security solutions. That's ticker K T O S.
08:35 And this is a company that essentially is kind of a defense contractor. They provide
08:40 products services and solutions for United States national security priorities products,
08:46 including microwave, electronic products, satellite communications, modular systems
08:51 and rocket support operating in the robotics sector. A very interesting company. Another
08:57 one that I had maybe heard of once or twice before. If you're interested in kind of the
09:03 futuristic defense contractor zone, this might be a stock to watch for you up almost 61%
09:11 year to date. Kratos does consist. It's 6.85% of the ARC queue. It's a pretty, pretty decent
09:19 chunk. It's it's amazing that the jump between Tesla at almost 13 and a half percent down
09:23 to UI path and the rest of them are pretty significant. So Tesla is primary constituent
09:28 of ARC queue, but these secondary names still pretty big, pretty important for the ETF Kratos.
09:34 I believe I'm saying that right. A good constituent to look at, especially if you're looking more
09:41 in the specific defense sector of the future of what this technology sector could hold.
09:48 Finally stock to watch number five, we've got Iridium communications. That's ticker
09:52 I R D M. Iridium makes up just a little over 6.6%. It's a little six and a half percent
10:00 of the ARC queue ETFs. If you're investing in ARC queue, you're getting exposure to all
10:05 of these along with a number of more of names, but another one that maybe heard about once
10:10 or twice down actually year to date, but up on the year and really up a hundred over 160%
10:17 in the last five years. This is one of those names that actually did pretty well, but not
10:21 crazy well over COVID didn't have a big correction. Somewhat of a rarity in the market in the
10:28 past few years. If we look back even farther, let's say back to 2015, 2016 at about $7 per
10:33 share in January, now at $50 per share was up over $63 per share back in April of this
10:41 year. So it's down from its 52 week high, but pretty darn far up over time. It does
10:49 actually also have a dividend as opposed to most of these high technology stocks. It's
10:53 got a 0.52% dividend, you have a little over half a percent. Last earnings were pretty
10:59 far lower than estimates, but they reported investing heavily into R and D. They are engaging
11:06 in the global satellite communications, their satellite services and products, including
11:11 personal communications, messaging, trackers, satellite phones, push-to-talk devices, broadband,
11:18 external terminals, docking stations, apps, and accessories, primarily offering services
11:23 to businesses, United States and foreign governments, NGOs, and consumers via its satellite networks.
11:30 This is a pretty unique company to be looking at and a significant constituent for the RQ
11:37 Autonomous Technology Robotics ETF. All right, those are our five ideas for the day. We're
11:42 gonna go back over the list, make sure we got them all and get you out to your trading
11:46 day. Stock to watch number one was Tesla, that's ticker TSLA, biggest constituent by
11:51 far, always a stock to watch. Ticker number two was Path, that's UiPath with ticker PATH.
12:00 Stock to watch number three was Trimble Navigation, that's ticker TRMB, Trimble. Number four,
12:06 we had Kratos Defense and Security Solutions with ticker KTOS. And number five, we had
12:12 Iridium Communications, ticker IRDM. Those are the top five biggest constituents of the
12:18 ARKQ ticker, Autonomous Technology and Robotics ETF from ARK Invest, Cathie Wood. Hope everyone
12:28 has a wonderful start to your trading week, a fantastic Monday, and we will catch you
12:33 tomorrow.
12:33 [BLANK_AUDIO]