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Women have set new standards in the world economy through their incredible leadership, entrepreneurship, talent and decision-making skill. They are not only contributing to the global economy but also stimulating growth. On International Women’s Day, let us put the spotlight on women with commanding positions in the business world.
The number of women running Fortune 500 companies hit an all-time high of 37 in 2020. This is up from 33 in 2019, 24 in 2018 and just 2 seen 20 years ago. In the first quarter of 2021, 40 women are leading Fortune 500 companies. Also, 30 (6.0%) women held CEO positions at S&P 500 companies as of January 2021. About 21% of female employees took board seats, 26.5% are executive or senior level managers and 37% are the first or middle-level managers.
Per several researches, companies led by women have a long history of outperformance. A 2019 study by S&P Global Market Intelligence found that public companies with women in the CEO spot or serving as a chief financial officer were more profitable and had a stronger stock price performance compared to companies with men in the top jobs. A new study by Goldman Sachs also found that companies with more women in management and board positions outperformed their more male-led counterparts.
According to many researchers, companies with greater levels of gender diversity on their boards of directors were more profitable than their male-dominant counterparts. Gender diversity usually results in increased productivity, greater innovation, better decision-making as well as higher employee retention and satisfaction. Companies with greater diversity on their boards have also experienced lower volatility in earnings and dividends. All these suggest a new era of women leadership in the world economy.
If we come to managing the COVID-19 crisis, which pushed the economy into a recession last year, study found that women leaders navigated the pandemic more successfully than comparable male counterparts.
Given the long history of outperformance, many investors are seeking to add female-centric companies to their portfolio although the list is still small. Below, we have highlighted some top-ranked stocks from the S&P 500 that are headed by female CEOs and have massive upside potential in the coming years.
Tapestry Inc. TPR
This New York-based company is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. It has an estimated earnings growth rate of 162.9% for fiscal year (ending June 2021) and delivered earnings surprise over the past four quarters, with an average beat of 39.45%. The stock has a Zacks Rank #2 (Buy) and Growth Score of B. It has delivered strong returns of 88.6% in a year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ulta Beauty Inc. ULTA
This Illinois-based leading beauty retailer in the United States offers a wide range of products including cosmetics, fragrance, skincare, hair care, bath and body products, and salon styling tools in stores. It has an expected earnings growth rate of 223% for the fiscal year (ending Jan 2022) and delivered an earnings surprise of 71.76% over the past four quarters. The stock has a Zacks Rank #2 and Momentum Score of B. Ulta Beauty has gained 29.6% in a year.
Synchrony Financial SYF
This Connecticut-based company is the largest provider of private label credit cards in the United States. The stock has an estimated earnings growth rate of 103.5% for this year and delivered an earnings surprise over the past four quarters, with an average beat of 11.84%. The stock has a Zacks Rank #2 and Momentum Score of A. Synchrony Financial is up 37% in a year.
CDW Corporation CDW
This Illinois-based company is a leading provider of integrated information technology (IT) solutions to small, medium and large business, government, education and healthcare customers in the United States, United Kingdom and Canada. It has expected earnings growth of 7.7% for this year and delivered an earnings surprise of 14.13% over the past four quarters. CDW Corporation has a Zacks Rank #2 and Growth Score of A. It has delivered strong returns of 35.7% in a year.
Zoetis Inc. ZTS
This New Jersey-based company discovers, develops, manufactures and commercializes animal health medicines, vaccines, and diagnostic products in the United States and internationally. It has expected earnings growth rate of 14.29% for this year and delivered an earnings surprise of 18.05% over the past four quarters. The stock has a Zacks Rank #2 and a Momentum Score of B. Zoetics is up 4.4% in a year.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report
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