Cathie Wood, CEO of ARK Invest, recently bought 31,265 shares of Illumina, totaling $2.98 million. This investment makes Illumina the 15th largest holding in ARK’s Genomic Revolution ETF, representing 2.8% of the overall portfolio. Wood is known for making bold bets on disruptive innovation.

Illumina, a biotech company valued at $16.6 billion, specializes in genome sequencing. Its technology is used in various fields, including healthcare, research, and agriculture. Despite a recent stock price decline due to past issues, Illumina is refocusing on its core business of genome sequencing with a new CEO at the helm.

Wood sees the recent challenges faced by Illumina as an opportunity and believes the company is on the right track. Illumina’s financial performance is stabilizing, evidenced by improved margins and reduced expenses. The company exceeded revenue expectations and reaffirmed full-year guidance, with a positive free cash flow of $208 million in the first quarter.

Analysts expect Illumina to report revenue of $1.05 billion and earnings per share of $1.01 in the second quarter. Despite a projected 3% drop in revenue for the full year, earnings are expected to grow by 72.9% to $4.24 per share. The stock is currently trading at 22 times forward earnings for 2026 and three times forward sales.

With a consensus rating of “Moderate Buy,” Illumina stock has the potential for a 76.8% rally from current levels. Wood’s investment in Illumina is based on extensive research and a belief in the transformative power of genomics. Illumina’s lower cost structure, profit growth potential, and new products position it for a turnaround, making it an opportunity for investors with a long-term view.

Read more at Yahoo Finance: Why Cathie Wood Is Loading Up on This Hot Growth Stock (And Should You?)