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

Auto parts stocks can be value traps. They often have high ROE, low debt. Problem is they're cyclical, depending on how auto sales are doing. Feast or famine. He prefers companies that can increase earnings through thick and thin. Be very careful. Not long-term holdings, they're rentals.

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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

As an e-vehicle play If GM renamed themselves "General Motors Electrical Corp" then their market cap would jump from $79 billion to $100 billion. The CEO is smart and doing the right things, so he likes GM.

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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

The CEO is great and has navigated really tough times. Buy some now, and if it falls lower, buy more.

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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 discount US retailer found in strip malls. They buy excess inventory from big department stores like Nordstrom. ROST is like Homesense. High margins, low debt. They will thrive as consumers watch their money. Like Dollarama, this is defensive. With some big retailer likely to close, like J. Crew this opens an opportunity for ROST…

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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

Intel's disappointing report yesterday could benefit AMD which has broken into the hottest category with its chips where Intel has fallen behind. He expects a blow-out report on Tuesday. Their Xilinx purchase may put a drag on the stock.

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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

Has always been a bit of a sleeper, but doing all the right things. Legacy hardware side is a ball and chain. He has a price target of $69, so it's getting close. In a correction, look to pick it up around $56, add to it at 50, and if you're lucky around 45.

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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

Allan Tong’s Discover Picks IBM stock was pounded nearly 10% after it released a harsh quarterly report where total sales declined for the fourth-straight report across all five of its business segments. For example, its systems business plunged 17.8% while net sales slid 6.5%. There's still hope that IBM's hybrid cloud business will pay off,…

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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

Don't buy the mining company, but rather the company that makes the pick-axes. $2.8 billion in expected revenues for 2020. They have offices in 25 countries. Known for the stock exchange, they also operate information services and corporate services, lending their name to fund companies to create new funds and indexes. Long-term, NDAQ will benefit…

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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

Owns Transalta renewables. The utility sector as a whole suffers from being not too cheap, fairly leveraged and so he would prefer to get companies that have better cashflow.

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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

They have a 52% interest in a regulated utility. They also own a structures business. It has diversified to other end markets like hospitals. They also diversified out of western Canada. If you hold it as an income stock then continue to hold it. The yield is there for the income stream.

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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

Many feel that the Democrats would spend on defence, but that isn't so. Regardless of the administration there's defence spending. He likes LMT's predictability. They're best know for their airplanes, but in this space, he prefers the cheaper GD in 2018 bought CSRA which is in cyberdefence and A.I. He also prefers Raytheon, giving you…

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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

Lockheed-Martin? In this space, he prefers the cheaper GD in 2018 bought CSRA which is in cyberdefence and A.I. Now, it's a little depressed because of the commercial side, but it has a lot of potential.

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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

A lot of investors don’t want to own oil stocks. He is not a huge fan. A lot of these companies don't see the value of sitting on cash when commodity prices are high.

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