Is Women CEO the Secret to Generating High Returns on Equity?

There are a number of women breaking the glass ceiling in the business world. Some have reached the coveted CEO level and oversee great companies with large market capitalizations. These female CEOs can be found in a wide variety of sectors.

These companies have been celebrated for having strong management and good foresight. According to an article on The Balance and a number of studies in recent years, there is evidence that women in executive positions and on corporate boards can have a positive impact on a company’s performance.

Here are the best-run companies listed on Stockchase run by CEOs that are women:

🛍 Consumer
Canada Stock
Linamar Corp (LNR-T)
Linda Hasenfratz is a Canadian businesswoman, the president, chairman, and CEO of Linamar since 2002. The second largest automobile parts manufacturer. It’s a very well managed company with products to go forward. They are also in the aerial lifts and agriculture space.

Linamar Corp (LNR-T) — Stockchase

The car parts suppliers trade at low PEs, but are vulnerable to the auto cycle. Good news is that car demand has picked up faster than expected. She owns none of these stocks, but Magna is best in this class, given its global platform and recent performance.

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US Stock
General Motors Corporation (GM-N)
Mary Teresa Barra is the Chairwoman and CEO of General Motors Company, and she has held the CEO position since 2014. It’s trading at a cheap multiple of 6.2x earnings. There is volatility in the auto sector as they go through electrification. It pays a good dividend but it is not expected to be raised in the near future.

General Motors Corporation (GM-N) — Stockchase

The car business, though trading at low PEs, is in a difficult situation, given legacy issues. Tesla is a tech company, by contrast. Traditional car companies are stuck between traditional gas cars vs. emerging e-cars, which haven't yet taken off. Dealers make money in servicing cars (selling cars offer small margins), but e-cars require fewer…

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Hershy Foods Corp (HSY-N)
Michele Buck is an American businesswoman. In March 2017,she became the first female President and CEO. The largest chocolate manufacturer in the world. It is a global leader with over 80 brands. A defensive growth stock and it is a good pick against tariffs since most of their revenues are from North America.

Hershey Foods Corp (HSY-N) — Stockchase

(A Top Pick Sep 12/18, Up 46%) 7% earnings growth rate. You pay a premium, as we're in late cycle. 2% dividend, low beta. Dominance in US confectionery space. Starting to diversify. Still room to grow, especially as money is rotating to more defensive plays.

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Ulta Salon Cosmetics and Fragrance Inc. (ULTA-Q)
Mary Dillon is an American businesswoman, and has been the CEO since July 2013. A beauty store chain in the United States. It’s well managed and is continuing to open stores. Their same-store sales growth has been growing well at 7-8% yearly.

Ulta Salon Cosmetics and Fragrance Inc. (ULTA-Q) — Stockchase

They report Thursday. Brick and mortar will make a comeback when stores reopen. He expects a sales explosion. Ulta is also rolling out a collection to put into Target stores.

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Ross Stores Inc. (ROST-Q)
Barbara Rentler is a businesswoman, and the current CEO of Fortune 500 company. An off-price department store chain. They are the second largest after TJX Companies. In times of recession, these stocks tend to do well. THey are also building stores and buying back shares.

Ross Stores Inc. (ROST-Q) — Stockchase

(A Top Pick May 05/20, Up 33%) He has some concerns about retail but they sell the excess inventory of name brands and provide a treasure hunt experience. They are extremely well run. They re-initiated their dividend. He got stopped out but has not bought back yet.

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💻 Technology
US Stock
Advanced Micro Devices (AMD-Q)
Lisa Su is a Taiwanese American business executive and electrical engineer, and the CEO and president of Advanced Micro Devices (AMD). A semiconductor maker that is Intel’s competitor. It has stayed above the 200 day average and the sector is recovering.

Advanced Micro Devices (AMD-Q) — Stockchase

Stockchase Research Editor: Michael O'Reilly AMD is the world's second largest manufacturer of CPUs, after Intel. Recent reported earnings showed impressive growth in all key segments of computers, gaming and servers. EPS is expected to grow another 28% this year and continue those rates over the five. We would buy this will a stop-loss at…

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Oracle (ORCL-N)
Safra A. Catz is an Israeli-born American business executive and co-CEO of Oracle Corporation. A computer technology company. They are developing their subscription services and cloud based business.

Oracle (ORCL-N) — Stockchase

It made a new high today over $73, but has tumbled after hours on a mixed report. It's back to where it was in late-2020. It's not sexy without huge, though steady growth, but it trades at a reasonable valuation as operating margins hang in there. BTW, for the first time in a long time,…

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IBM (IBM-N)
Virginia Marie “Ginni” Rometty is an American business executive. She is the current chair, president, and CEO of IBM, and the first woman to head the company. A multinational tech company that specializes in computer hardware. They are implementing a stock buyback plan that will see the stock pay a 5% yield.

IBM (IBM-N) — Stockchase

A trade, not an investment. Buy around $120, sell around $140. Hard to see a clear investment thesis on it, though it tries very hard. Legacy hardware side that they pull around like a ball and chain.

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👨‍⚕️ Healthcare
US Stock
Mylan Inc (MYL-Q)
Heather Bresch is an American business executive. She has served as the chief executive officer (CEO) of Mylan since 2012. A global pharmaceutical company that manufactures generic drugs. They are the ones who manufacturer EpiPen and they went through some controversy. A generic version is now offered but their credibility is still brining pressure.

Mylan Inc (MYL-Q) — Stockchase

TEVA-N vs. MYL-Q. He does not like either at these prices. They are both generics manufacturers. There are lots of headwinds on pricing in these categories. We have had a lot of noise on pricing of pharmaceuticals. The FDA is going to alleviate the delays on getting new drugs to market. He wants to be…

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🏛 Financials
US Stock
Ventas Inc (VTR-N)
Debra A. Cafaro is an American business executive, who is Chairman of the Board and Chief Executive Officer of Ventas, Inc. A real estate investment trust specializing in the US healthcare industry. They are one of the largest healthcare REITs and is very well run.

Ventas Inc (VTR-N) — Stockchase

It is a healthcare REIT, so there is little reason for it to do well until the FED pauses. They have a short history.

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Nasdaq Stock Market (NDAQ-Q)
Adena T. Friedman is an American businessperson. She currently serves as the president and CEO of Nasdaq. The financial services company that operates the NASDAQ stock exchange. They also operate eight European stock exchanges.

Nasdaq Stock Market (NDAQ-Q) — Stockchase

(A Top Pick Jun 09/20, Up 28%) The exchange, plus market data. Recurring, organic revenues. 24x earnings, with a 7% growth rate. Getting a bit expensive, so he's trimming. Long-term, a good name.

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Progressive Corp Ohio (PGR-N)
Tricia Griffith is an American business executive who currently serves as the CEO and president of Progressive. A car insurance provider. The property and casualty insurance sector has very low costs of operation and is profitable. There is a long-term uptrend that is lifting share prices.

Progressive Corp Ohio (PGR-N) — Stockchase

Very fine company. One of the best property and casualty companies in the world. Relatively resilient, defensive business model. Long-term, he recommends it. But for short and medium performance, we're exiting a recession, so it makes sense to put more capital into cyclicals.

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Synchrony Financial (SYF-N)
Margaret Keane has been the chief executive officer and president of Synchrony Financial since February 2014. A consumer financial services company. They try to bring value to consumers and merchants. It offers private label credit cards and other deposit products.

Synchrony Financial (SYF-N) — Stockchase

A financial stock, and he likes financials. It has done very well. Closed at $39.76, and he has a model price of $49.45, 25% higher. Pays out $.60. Looks like they are going to earn $3.46 this year.

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Keycorp (KEY-N)
Beth Elaine Mooney is an American financial executive who is the first woman to be CEO of a top-20 U.S. bank. A regional bank based in Cleveland. It is one of the largest bank-based financial services company.

Keycorp (KEY-N) — Stockchase

(A Top Pick Aug 22/16. Up 54.49%.) A small-cap bank. If you are risk averse, he would advise you to get out of the stock. If not, the story is still good. Thinks there is still some upside, especially if interest rates go up.

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💡 Utilities
Canada Stock
Transalta Corp (TA-T)
Dawn Lorraine Farrell has been the Chief Executive Officer and President at TransAlta Corporation since 2012. An electricity power generator that has announced plans to buy back stocks. They are making a transition from coal to natural gas fired power plants.

Transalta Corp (TA-T) — Stockchase

Can charge more for assets because of the SCC decision, so they'll be more highly regarded. It's fine.

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Atco Ltd (ACO.X-T)
Nancy C. Southern has been the Chief Executive Officer of ATCO Ltd. since January 2000. A holding company with subsidiaries mostly in gas or construction. The talks of lower interest rates has helped this company’s stock price.

Atco Ltd (ACO.X-T) — Stockchase

Holding company for CU. Grows nicely. Great yield, trading at 13x earnings. 15% discount to NAV. There are assets to monetize on the real estate side. History of increasing dividend. Well run. Yield is 3.6%.

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US Stock
Duke Energy (DUK-N)
Lynn J. Good is chairman of the board, president and chief executive officer of Duke Energy, a Fortune 500 company. An electric power holding company that is in energy infrastructure. The rising interest rate have hurt the utilities and energy sector but it is recovering and the overall outlook is good.

Duke Energy (DUK-N) — Stockchase

Utility recommendation? Pays a 3.5% yield, and well-run. It's a steady-eddy and operates in the Carolinas, so offers geographic diversification for your portfolio.

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CMS Energy Corp (CMS-N)
Patricia K. Poppe is an American businesswoman and business executive, the president and CEO of CMS Energy since 2016. A utility operations company. One of the best run in the US. It is currently trading at a premium, but the quality justifies the price.

CMS Energy Corp (CMS-N) — Stockchase

This is one of the best run utilities in the US. It is not a value play but a high quality play. It is another way to add to the utilities. It is trading at over 20X earnings to is trading at a premium, however, you are buying quality. It is the best run utility…

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American Water Works Co. Inc. (AWK-N)
Susan N. Story is an American utility executive and the current Chief Executive Officer of American Water. They operate public water utility in the US and Canada. They have quite a high valuation with over 20 times earnings but it has performed well.

American Water Works Co. Inc. (AWK-N) — Stockchase

Play on water scarcity going forward. If you've owned for a long time, sell some, take profits, and take your position down to about half of what it is. Secular tailwind is in its first or second inning. It will continue to do well, but trade at an expensive multiple.

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🚚 Industrials
US Stock
Lockheed Martin (LMT-N)
Marillyn Adams Hewson is the chairman, president and chief executive officer of Lockheed Martin. A global aerospace and defense tech company. This tends to move higher with market volatility. They pay a good yield of 2.58%.

Lockheed Martin (LMT-N) — Stockchase

LMT vs. GD vs. RTX When analyzing a company, you also want to analyze its peers. This is the case here. Instead, look at General Dynamics. They acquired CSRA, entrenched in cyber defense, and this is where corporate and government money will be invested. Also see Raytheon, a hybrid of a commercial application with a…

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General Dynamics Corp. (GD-N)
Phebe Novakovic is an American businesswoman and former intelligence officer. She serves as the Chairwoman and Chief Executive Officer of General Dynamics. They make nuclear subs for the government and executive Gulfstream jets. 25% of their revenues are from aerospace and business jets. They just increased their dividend by 10% recently.

General Dynamics Corp. (GD-N) — Stockchase

A defensive company that has made an acquisition in the cyber defence business. Future wars will be won and lost in this platform. Trades at 15x earnings. A good entry into this. Highly acquisitive.

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⚡ Energy
US Stock
Occidental Petroleum Corp (OXY-N)
Vicki Hollub is an American businesswoman and mineral engineer. She has been the president and CEO of Occidental Petroleum since April 2016. A petroleum and natural gas exploration company. They are one of the largest US oil and gas company by equity market cap. They also own OxyChem which is a major chemical manufacturer.

Occidental Petroleum Corp (OXY-N) — Stockchase

The price of oil in the last 9 of 10 days has risen. Many predict the long bear market is over, but he's worried about the oversupply of oil. They report Tuesday and he wants to hear what they say. A recent acquisition added a lot of debt.

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