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:
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.
(A Top Pick Jun 21/21, Down 30%) It showed signs of upside with insider buying but the Russia/Ukraine war caused supply shortages. In a normal year it should trade at $100.
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.
With lots of intrinsic value it is a real value stock. It was essentially wiped out one bear market ago. It could probably fall to $28 to $30 so is too early to buy.
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.
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.
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.
(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.
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.
She's watching it. This and Nvidia are best in class, run by fine managers. This current market offers buying opportunities. They will have long runways for years.
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.
(A Top Pick May 08/20, Up 36%) He'd continue to own a small piece, but don't load up the truck. Bought back too much stock, so they blew out their equity on the balance sheet. Fundamentals are not as great now. If Fed turns around, this will do well.
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.
They report tomorrow, though she expects it to be tame. Pays a 5.2% dividend yield trading at 13x earnings.
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.
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…
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.
In assisted living, he would buy Ventas, but too many things can go wrong with this entire sector due to Omicron, so he wouldn't touch the sector right now.
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.
(A Top Pick Jun 21/21, Up 16%) All the exchanges are a great way to gain exposure to increased exposure to equities, options and cryptos. He never bought NDAQ, but chose Interactive Brokers instead because of the latter's exposure to cryptos. Still recommends this along with CME and Interactive Brokers.
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.
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.
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.
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.
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.
(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.
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.
Mainly in Alberta. Pivoting away from coal, towards renewables. 50% valuation discount to pure play renewable power generators. Defensive like a utility, but backdoor play on strength in the oil patch. Bought it for the income, as well as potential capital appreciation. Breaking out on the charts. Yield is 1.40%. (Analysts’ price target is $16.45)
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.
Believes company is a good defensive position. 29 years of dividend increases. Well managed company that is moving into renewable space. Stock price has outperformed other sectors of economy. Under followed company. Good price to buy.
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.
For this, and all the utility companies, stock price is high in a low interest rate environment because of the dividend. Minimal growth. Will be hurt if interest rates rise. If that happens, you'll probably be able to buy it cheaper.
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.
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…
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.
Clean water companies fit into ESG portfolios. One of the strongest parts of the market. Leader in the group, steady growth which is likely to continue at 10% a year. Continues to outperform the S&P, so should have a tailwind for a while. Yield is a decent 1.3%.
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%.
(A Top Pick Sep 14/21, Up 23.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with LMT has triggered its stop at $425. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 21%, when considering the previous buy recommendation.
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.
Was one of top picks a few weeks ago. There is a great demand for its products such as making systems for submarines and combat systems for some European allies. It is inflation protected since the contracts are cost plus. Own it for the long term.
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.
options It was trading just beneath $63. A big buyer added 5,000 of the June 67.50 calls were bought for for $3.25 and selling an upside call against it.