4 Buy-Rated Stocks Led By Women CEOs

Despite the many challenges due to gender inequality, women are increasingly rising in the ranks to leadership roles. Today, several well-known organizations are run by female CEOs. According to the latest Women in the Workplace report from McKinsey, in partnership with LeanIn.Org, women have done more to support their teams compared to men at the same level amid the pandemic. The largest study of women in corporate America revealed that women continue to take on extra workloads to help their organizations navigate the pandemic-led challenges.

The steady progress of women's power in the global business world is apparent from the all-time high number of women running businesses on the Fortune 500 this year. There are 41 women leaders on the list this year. Moreover, investors' have been rewarded in investing in women-led companies, which is evident from the SPDR SSGA Gender Diversity Index ETF’s (SHE) 31.17% gain over the past year versus the SPDR S&P 500 Trust ETF’s (SPY) 28.73% returns.

Investors seeking to benefit from the power of women leaders should bet on shares of well-known female-led companies, such as Oracle Corporation (ORCL), Anthem, Inc. (ANTM), General Dynamics Corporation (GD), and Best Buy Co., Inc. (BBY).

Oracle Corporation (ORCL)

Safra Catz has been serving as the CEO of the well-known software company ORCL since September 2014, after the founder Larry Ellison stepped down from the role. Her aggressive acquisition strategy was an effective tool in helping the company grow. Under her leadership, ORCL completed more than 130 acquisitions. Shares of ORCL have gained more than 100% since she took charge of the company.

For its fiscal first quarter ended August 31, 2021, ORCL’s non-GAAP total revenues came in at $9.73 billion, representing a 3.8% year-over-year rise. The company’s non-GAAP operating income came in at $4.33 billion, indicating a 3.7% year-over-year improvement. ORCL’s non-GAAP net income came in at $2.94 billion, up 2.2% from the prior-year period. Its non-GAAP EPS increased 10.8% year-over-year to $1.03. As of June 30, 2021, the company had $23.06 billion in cash and cash equivalents.

Analysts expect ORCL’s EPS to improve marginally in the current year to $4.70. The consensus revenue estimate of $42.25 billion for the current year represents a 4.4% rise year-over-year. It surpassed the consensus EPS estimates in each of the trailing four quarters. Analysts expect the stock’s EPS to grow at a 10.6% rate per annum over the next five years. The stock has gained 41.4% year-to-date to close yesterday’s trading session at $91.34.

ORCL’s POWR Ratings reflect this promising outlook. The stock has an overall B rating, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

The stock has a B grade for Value, Stability, Sentiment, and Quality. Click here to see the additional ratings for ORCL’s Growth and Momentum.

Of the 156 stocks in the Software - Application industry, ORCL is ranked #9.  

Anthem, Inc. (ANTM)

Gail Boudreaux was named CEO of health benefits company ANTM in 2017. She was previously the CEO of UnitedHealthcare, the largest division within UnitedHealth Group (UNH). Her industry experience and leadership helped shares of ANTM gain more than 100% since she assumed the position.

ANTM’s total revenues increased 15.7% year-over-year to $33.85 billion in its fiscal second quarter ended June 30, 2021. At the end of the second quarter, the company had $5.26 billion in cash and cash equivalents.

ANTM’s EPS is estimated to rise 14.1% year-over-year to $25.65 in the current year. It surpassed Street EPS estimates in each of the trailing four quarters. Analysts expect its revenue to be $137.19 billion for the current year, representing a 13.6% year-over-year improvement. The stock’s EPS is expected to grow at a rate of 13.6% per annum over the next five years. The stock has gained 16.3% year-to-date and ended yesterday’s trading session at $370.08. 

ANTM’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, which equates to Strong Buy in our proprietary rating system.

The stock has a B grade for Value, Growth, and Stability. Click here to see the additional ratings for ANTM (Quality, Sentiment, and Momentum).

ANTM is ranked #2 of 11 stocks in the B-rated Medical - Health Insurance industry. 

General Dynamics Corporation (GD)

Phebe Novakovic has been heading defense contractor GD since January 2013 as the chairman and CEO. Shares of GD have gained more than 180% during her tenure.

For its fiscal second quarter ended July 4, 2021, GD’s operating earnings increased 15% year-over-year to $959 million. The company’s net earnings came in at $737 million, representing a 17.9% rise from the prior-year period. Its EPS came in at $2.61, indicating a 19.7% year-over-year improvement. As of July 4, 2021, the company had $2.95 billion in cash and cash equivalents.

Analysts expect the stock’s EPS to improve 4.6% year-over-year to $11.51 in the current year. The consensus revenue estimate of $39.29 billion for the current year indicates a 3.6% rise from the prior-year period. GD surpassed the consensus EPS estimates in three of the trailing four quarters. GD’s EPS is expected to grow at a rate of 8.4% per annum over the next five years. GD has gained 33.2% year-to-date to end yesterday’s trading session at $199.36.

GD’s POWR Ratings reflect this promising outlook. The stock has an overall B rating, which equates to Buy in our proprietary rating system. 

The stock has a B grade for Stability and Sentiment. Click here to see the additional ratings for GD’s Growth, Value, Momentum, and Quality.

GD is ranked #13 of 65 stocks in the Air/Defense Services industry.  

Best Buy Co., Inc. (BBY)

Corie Barry became the CEO of big-box electronics and technology retailer BBY in June 2019 after serving several other executive positions within the company. Under her leadership, BBY is set to grow annual revenue to $50 billion by fiscal 2025. Shares of BBY have gained more than 60% during her tenure.

BBY’s revenues increased 19.6% year-over-year to $11.85 billion for its fiscal second quarter ended July 31, 2021. The company’s gross profit came in at $2.81 billion, up 23.8% from the prior-year period. Its non-GAAP operating income came in at $821 million, representing a 39.6% year-over-year improvement. While its net income increased 69.9% year-over-year to $734 million, its non-GAAP EPS increased 74.3% to $2.98. The company had $4.34 billion in cash and cash equivalents as of July 31, 2021.

The consensus EPS estimate of $9.64 for the current year represents a 21.9% year-over-year improvement. It surpassed Street EPS estimates in each of the trailing four quarters. The consensus revenue estimate for the current year is $51.17 billion, indicating an 8.3% rise from the prior-year period. Analysts expect the stock’s EPS to increase at a rate of 9.1% per annum over the next five years. The stock has gained 6.7% year-to-date to close yesterday’s trading session at $105.77.

It’s no surprise that BBY has an overall B rating, which equates to Buy in our POWR Ratings system. The stock has an A grade for Momentum, and a B grade for Value, Sentiment, and Quality. Click here to see the additional ratings for BBY’s Growth and Stability.

The stock is ranked #6 of 41 stocks in the B-rated Specialty Retailers industry.

ORCL shares were unchanged in after-hours trading Thursday. Year-to-date, ORCL has gained 44.39%, versus a 18.47% rise in the benchmark S&P 500 index during the same period.

Sweta is an investment analyst and journalist with a special interest in finding market inefficiencies. She’s passionate about educating investors, so that they may find success in the stock market.

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