How To Invest In Woman-Led Companies With ETFs & Stocks

Gender diversity is en vogue with women set to be a significant part of the market over the next decade. They are contributing to the global economy and stimulating growth. Research from McKinsey found that gender equality could help bolster the global economy by $12-$28 trillion by 2025.

On International Women’s Day, let us put the spotlight on women with commanding positions in the business world. Per several researches, companies led by women have a long history of outperformance. Women run a diverse group of companies in a wide range of fields, including technology, energy, and retail.

Though the number of women CEOs on Fortune 500 has decreased to 24 in 2018 from a record 32 in 2017 as more than a third of Fortune 500 female CEOs resigned in the past year, they are still considered more effective leaders than men. The Fortune 500 also noted that the percentage of female CEOs has increased since 1998, however with some dips after 2011.

Per Bank of America Merrill Lynch, gender diversity can boost return on equity, profit, dividends and market cap at a lower risk rate. Companies with greater diversity on their boards have also experienced lower volatility in earnings and dividends. All these suggest a new era of women’s leadership in the world economy.

Given this, 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 that are headed by female CEOs and have massive upside potential in the coming years.

Anthem Inc. (ANTM - Free Report)

This Indiana-based healthcare company provides medical products, through its subsidiaries. It saw a whopping earnings estimate revision of $1.54 over the past 90 days for this year, representing 20.4% growth annually. The company also delivered positive earnings surprises over the past four quarters, with an average beat of 7.04%. The stock has a Zacks Rank #1 (Strong Buy) and a Growth Score of A. It belongs to a top-ranked Zacks industry ((top 11%), suggesting that it is primed for more growth in the future.

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Financial Zonked Talk 5 months ago Member's comment

Not until they remove cancer causing $JNJ from portfolio.