I like Cathie Wood. In an industry where legitimate instances of toxic masculinity run rampant, Wood is a breath of fresh air. Further, she runs her business based on her Christian faith, which is very commendable given Wall Street’s many temptations. Therefore, she speaks with a level of clarity and sincerity that’s difficult to come by, making so-called Cathie Wood stocks particularly compelling.

Unfortunately, faith alone does not spare investors from volatility. Technically speaking, many Christian ministers will argue that this walk is not meant to be easy. Therefore, how you perceive the red ink on Wood’s flagship ARK Innovation ETF (NYSEARCA:ARKK) could be the ultimate test. If you believe in Cathie Wood stocks — and perhaps a higher power — this is the time to prove it.

To be fair, ARKK was off to a brilliant start earlier this year. Between the beginning of January and Feb. 12, units of the exchange-traded fund returned over 25% for shareholders. Naturally, investors were encouraged with the performance, as ARKK was seemingly poised to continue its strong performance from last year’s March doldrums. And with Cathie Wood stocks levered to the most relevant industries, holding on appeared to be a no-brainer.

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Unfortunately, the narrative shifted dramatically from mid-February onward. Against this year’s peak, ARKK shed more than 28%. Even more perplexing, Cathie Wood stocks were increasingly including very risky names. For instance, the Ark Autonomous Technology & Robotics ETF (BATS:ARKQ) doubled down on shares of Workhorse (NASDAQ:WKHS) despite the electric vehicle manufacturer failing to secure a pivotal U.S. Postal Service contract.

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Still, people make mistakes. And before you fire off an angry email to the editor, I openly admit I’ve made my fair share of them. But in this situation, you should ask yourself, WWJD? While I don’t dare presume to speak for the Almighty, these are the Cathie Wood stocks that are making serious noise.

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  • Roku (NASDAQ:ROKU)

  • Twilio (NYSE:TWLO)

  • Nintendo (OTCMKTS:NTDOY)

  • Stratasys (NASDAQ:SSYS)

  • Tesla (NASDAQ:TSLA)

  • Teladoc Health (NYSE:TDOC)

  • Zillow (NASDAQ:Z, NASDAQ:ZG)

Because this is the internet, I’d like to make a few disclaimers. Just because Wood has a personal relationship with Jesus doesn’t necessarily mean Jesus is recommending Cathie Wood stocks to buy. What I can say with reasonable certainty is that you should perform your due diligence. Never invest on the basis of any one person’s opinion.

Cathie Wood Stocks: Roku (ROKU)ROKU Stock Will Continue Benefitting From the TCL Partnership

Source: Michael Vi / Shutterstock.com

I’ve got to be honest. Though I follow many of the Cathie Wood stocks because of their relevance, it’s hard to get too excited about them at this moment due to many economic uncertainties. Key among them is the eviction moratorium. Will it be extended beyond June 30, 2021 or will we see waves of homeless people on the streets?

However, with Roku, one of the top holdings of the ARKK ETF, I can understand where Wood is coming from. First off, the company put up great numbers for its first quarter of 2021 earnings report. According to CNBC, the streaming equipment manufacturer “posted its highest revenue growth rate” in the years since its 2017 initial public offering.

Second, ROKU stock is pertinent to the current economic narrative, perhaps much more so than other Cathie Wood stocks. Primarily, people want cheap entertainment and Roku provides exactly that. And with the consumer economy shaky for millions of Americans, we might not see a rush of purchases of smart TVs that could render over-the-top devices pointless.

Still, the day that smart TVs take over may be inevitable. What will Roku do then? In my opinion, it’s worth a modest shot because of the relative discount, but be careful.

Twilio (TWLO)The Twilio (TWLO) logo is displayed over a white background on a smartphone screen.

Source: rafapress / Shutterstock.com

Another one of the top-ranked Cathie Wood stocks in ARKK’s holdings, Twilio shares have been very impressive since 2018. As you most likely know, Twilio specializes in communications API (application programming interface), or a platform that allows businesses to “embed voice calling, text messaging and other communications functionality into a software application or product.”

I like to think of communications APIs as how machines interact with each other. Basically, through Twilio’s underlying innovation, it’s possible for ride-sharing apps to seamlessly connect drivers with clients. Also, such technologies allow both parties to know where the other is. Because Twilio underlines the connectivity of the next-generation economy, many investors banked on TWLO stock.

Most of them have done very well for themselves. This year, though, TWLO has been flat, which raises questions regarding its inclusion in ARKK’s top 10 holdings.

Part of the concerns may stem from its Q1 2021 earnings report. For revenue, Twilio did very well, generating top-line sales of $590 million, up nearly 62% from the year-ago quarter. But net losses also widened to $207 million from $95 million.

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Personally, this might be one of the top-tier Cathie Wood stocks that could bounce higher from here. Still, like ROKU, I’d be cautiously bullish on TWLO.

Cathie Wood Stocks: Nintendo (NTDOY)A yellow Switch Lite from Nintendo (NTDOY) sits in front of a bright pink background.

Source: ESOlex / Shutterstock.com

If I had to include any of the Cathie Wood stocks in my portfolio, I’d go with Nintendo. Basically, I’m familiar with the company, as I feel like I’ve grown up with the organization. And now that I think about it, I did actually grow up with it.

But setting aside personal sentiment, Nintendo plies its trade in one of the most relevant industries on the planet. According to information compiled by Statista.com, revenue for the video games sector may reach $154.6 billion by the end of this year. And by 2025, the market volume could exceed $220 billion. These are massive numbers and Nintendo owns significant market share, bolstering the case for NTDOY stock.

True, other video game console manufacturers overshadow Nintendo in terms of sheer popularity. However, the company carved out an important niche for itself: family-friendly entertainment. Quite frankly, video games are becoming increasingly violent and realistic, which poses ESG (environmental, social, governance) concerns. On the other hand, Nintendo usually steers away from controversy, making it attractive for parents and stakeholders alike.

Still, the risk factor is that the gaming environment is extremely competitive. Therefore, prospective buyers should be vigilant about NTDOY.

Stratasys (SSYS)Human hand touching the thumb of a 3D printed hand

Source: shutterstock.com/FabrikaSimf

As a pioneer of 3D printing equipment and additive manufacturing services, Stratasys is simultaneously one of the most intriguing and riskiest Cathie Wood stocks listed on the ARKK ETF. If you’ve ever seen what individual connoisseurs and professional developing firms can do with 3D printers, you can appreciate why many forward-thinking investors are excited about SSYS stock.

Much like connectivity technologies have infiltrated nearly every facet of our lives, 3D printing could very well spark a similar paradigm shift. From automotive to defense to industrial manufacturing solutions, 3D printers offer incredible utility. In particular, I’m interested in medical solutions, whereby doctors can develop personalized physical remedies at the point of care.

That’s the intriguing component. What’s not so intriguing, though, is the risk profile of SSYS stock. Since its IPO in the mid-1990s, Stratasys shares have been all over the map. This was best characterized by the 3D printing bubble that occurred around the middle of last decade. SSYS saw incredible heights only to crash back down to earth.

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Even more problematic, we just saw a mini-repeat performance earlier this year. What I don’t deny is that SSYS has potential. You just have to be careful how you approach it.

Cathie Wood Stocks: Tesla (TSLA)A person walks past the storefront of a Tesla store with several vehicles visible behind a glass door

Source: Ivan Marc / Shutterstock.com

For the remainder of the Cathie Wood stocks, I’m going to discuss the names that the ARKK ETF included in its top holdings but that I’m rather skeptical on. Let’s start things off with everyone’s favorite electric vehicle manufacturer: Tesla.

While opinions vary about TSLA stock, one thing is clear. This has been an absolute rock ship of a ride. At the beginning of 2020, shares were trading a few bucks shy of triple digits. It would later close at over $883 in January 2021 before shedding a significant portion of those gains. But given the incredible performance of TSLA, I can appreciate why Wood pulled the trigger on the discount.

Further, while everyone is playing catchup in the EV market, Tesla enjoys a strong brand advantage. Perhaps, as the bulls suggest, it’s an unassailable advantage.

However, it’s also possible that we could be entering a phase of peak EV. Yes, the sector has made tremendous progress but compared to traditional auto sales, EV market share remains limited. Plus, it’s not entirely clear that, absent groundbreaking technology like solid-state batteries, EV makers can get their products down to a reasonable price for average income households.

Also, don’t forget that combustion engines have made substantial improvements themselves. For instance, modern four-cylinder turbo engines provide ample performance and excellent mileage.

Teladoc Health (TDOC)The Teladoc (TDOC) logo through a magnifying glass.

Source: Postmodern Studio / Shutterstock.com

Among Cathie Wood stocks, Teladoc Health is one of the most directly connected to the coronavirus narrative. Significantly, TDOC stock proves that not every equity unit falls in tandem with other securities during a comprehensive market collapse. While virtually all publicly traded assets crumbled between February and March 2020, TDOC did quite the opposite.

That’s an important lesson — sometimes, the fundamentals matter all the time.

Of course, this is a what-have-you-done-for-me-lately business and therefore, it raises the question: is TDOC stock still relevant as Covid-19 cases seemingly enter a bear market of its own? On one hand, I can understand why Wood maintains confidence in Teladoc. This has been a difficult crisis to predict, so you should never say never. Moreover, Vietnam recently disclosed a hybrid of Covid-19 variants that’s incredibly contagious.

On the other hand, it’s very possible that Covid fatigue has already set in deeply with most Americans. You’re not seeing collective unity in this country as you are with others. Instead, wide-ranging pockets of individualism have sparked, leading to strong resistance movements. In other words, these folks will want to see “real” doctors, not virtual conference ones.

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Also, the questionable economic health of the U.S. suggests that millions may just defer medical visits altogether.

Cathie Wood Stocks: Zillow (Z, ZG)The Zillow logo displayed on a web browser and magnified by a magnifying glass

Source: II.studio / Shutterstock.com

Here’s the thing about the housing market — as you know, it’s absolutely bonkers. As the S&P/Case-Shiller U.S. National Home Price Index demonstrates, real estate demand reached unprecedented levels in March 2021. And from the looks of it, rising prices show no sign of abating. That’s not great news for first-time homebuyers looking for a piece of the American dream.

But on the more affluent end of the spectrum, it’s been a boon for Zillow. Therefore, I’m not the least bit surprised that this is included among Cathie Wood stocks. Over the trailing year, Z stock gained over 80%. What I am surprised about is that it remains a top holding in the ARKK ETF.

Although it’s possible, I’m not 100% buying into the perpetually rising home prices argument. Yes, there are shortage issues. But eventually, those issues should cool down as Americans get over their coronavirus fears and resume their normal activities. Part of that includes moving out — and that’s going to bring a lot of inventory into the picture.

Finally, I recommend prospective buyers to look at the chart of Z stock before making their decision. This is one ugly chart that belies the perma-bull storyline of rising housing prices.

On the date of publication, Josh Enomoto held a SHORT position in TSLA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

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