In this piece, we will take a look at the 11 best feminist stocks to invest in.
With the passage of time, the role of women in the modern day workplace has slowly started to grow. In less than a century, more women not only lead companies but are also among some of the wealthiest individuals in the world. At the same time, women have demonstrated that they are equal to men when it comes to disrupting industries. One of the best examples of this phenomena is America’s best known rocket company SpaceX. While SpaceX is famous for its founder and billionaire Elon Musk, the firm’s chief operations officer and president Gwynne Shotwell has been equally responsible for its massive success in the rocket industry which has dislodged decades of monopolies held by a few defense contractors.
In fact, this rising trend of women leading the charge at some of the biggest companies in the world has also generated interesting statistics when it comes to compensation. Data from Equilar shows that in 2023, out of the 341 CEOs part of the study, 25 were women. Their median pay package stood at $17.6 million, which according to Equilar, was 7.7% higher than the figure for the complete data set. At the same time, the 25 female CEOs saw five new executives added to the list when compared to 2022.
Considering this, it would appear that the gender pay gap in the US appears to be narrowing. To confirm this, we’ll have to look at the pay statistics for the entire country as opposed to only S&P 500 CEOs. Well, on this front, data gathered by Pew shows that there’s a lot to be done. The research firm points out that in 2002, women earned 80% of what men were paid. Two decades later, i.e. in 2022, this stood at 82%, indicating that there’s a lot more to be done to decrease the wage gap between the two genders. However, at the same time, younger women might be changing these trends. This is because according to Pew, women aged between 25 and 34 earned 92% of their male counterparts, which is quite higher than the figure of 86% in 2002.
With these details in mind, we decided to take a look at the best feminist stocks to invest in.
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Our Methodology
To make our list of the best feminist stocks to invest in, we ranked publicly traded Fortune 500 companies with female CEOs by the number of hedge funds that had bought the shares in Q1 2024. Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
11. Expedia Group, Inc. (NASDAQ:EXPE)
Number of Hedge Fund Shareholders In Q1 2024: 62
CEO: Ariane Gorin
Expedia Group, Inc. (NASDAQ:EXPE) is a travel services provider that enables users to plan and manage their trips. CEO Ariane Gorin is a recent appointment, as she only took over the helms in May 2024. Expedia Group, Inc. (NASDAQ:EXPE)’s financial performance is tied to the global economy, and a global resurgence in travel following the coronavirus pandemic has helped it beat analyst adjusted EPS estimates in all four latest quarters. After Expedia Group, Inc. (NASDAQ:EXPE) lowered its full year revenue guidance to “mid to high single digit top line” DA Davidson cut its share price target to $135 from $152 and kept a Neutral rating on the shares. It shared that the new target reflects lower 2024 revenue and operating income estimates.
Expedia Group, Inc. (NASDAQ:EXPE) has a forward price to earnings ratio of 10.59, which is lower than the market’s 21. This implies that investors expect the stock to lag the market in terms of growth. Aristotle Atlantic Partners mentioned the firm in its Q1 2024 investor letter. Here is what the firm said:
Expedia Group provides online travel services for leisure and small business travelers. The company offers a wide range of travel, shopping and reservation services and also provides real- time access to schedule, pricing and availability information for airlines, hotels and car rental companies. Expedia serves customers worldwide.
We see Expedia benefiting from the growth in booking travel online, both for leisure and corporate travel. The company also benefits from rapid growth in alternative accommodations and vacation home rentals through VRBO. The main sources of revenue and profitability are from hotel and vacation home rentals. Additionally, Expedia has exposure to airline ticket sales and automobile rentals. Following the COVID-19 pandemic, Expedia’s debt has been reduced, technology platforms have been rationalized, share repurchase has resumed and we expect a dividend will eventually be reinstated.
10. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)
Number of Hedge Fund Shareholders In Q1 2024: 62
CEO: Dr. Reshma Kewalramani FASN, M.D.
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a biotechnology company headquartered in Boston, Massachusetts. The average of 25 one year analyst share price targets for the firm is $468.39, which is lower than the current share price. The stock is rated Buy on average. RBC Capital was out with a bearish note for the firm in June 2024 when it cut Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)’s share price target to $421 from $424 and kept a Sector Perform rating. The research firm highlighted that potential royalty payments by the biotechnology company for a pain treatment could end up impacting its 2024 EPS by 2%. It added that while Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) has an impressive pipeline of drugs, their potential might already be reflected in the share price.
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)’s forward P/E ratio of 29.50 implies that investors expect the stock to grow faster than the broader market. This is unsurprising for the biotechnology industry, which is known for its high risk and high reward structure. Harding Loevner mentioned the firm in its Q4 2023 investor letter and shared:
The potential for technological innovation to create shareholder value goes far beyond the effects of AI, of course. For example, Vertex Pharmaceuticals is building a significant competitive advantage through its unique approach to drug discovery.
Unlike most drug developers, which focus on mitigating symptoms of an illness, Vertex seeks to understand and address the causal biology of a disease more fully. This approach has helped the company establish a wide lead in treating cystic fibrosis (CF), a rare disease that causes mucus buildup in organs such as the lungs. Vertex’s research and treatments have targeted the root cause of CF, which is that a particular protein becomes misfolded and unable to move chloride out of a cell, resulting in an imbalance between salt and water. Its scientists have been able to do this by working with the lung cells of real CF patients, an advantage over using engineered animal cells to simulate the disease-causing mechanism to determine which drug candidate is most promising for humans. Vertex’s latest therapy, approved in 2019, is Trikafta, a combination of three medicines that targets a mutation found in 90% of CF patients.
. . .As Vertex turns toward treating Type 1 diabetes and non-opioid pain management next, the company’s CEO is forecasting a “milestone-rich period.” Meanwhile, the commercial rollout of Trikafta has been so successful that management increased company revenue projections twice in 2023. Each CF treatment introduced by Vertex has not only made substantial improvements over earlier generations but also arrived long before the patents expired on the previous therapy. By quickly and repeatedly raising the standard of care, Vertex was able to ward off competition from a potential new market entrant. The rival found it too difficult to catch up and ultimately abandoned its efforts
9. Parker-Hannifin Corporation (NYSE:PH)
Number of Hedge Fund Shareholders In Q1 2024: 63
CEO: Jennifer A. Parmentier
Parker-Hannifin Corporation (NYSE:PH) is a sizeable industrial machinery company headquartered in Cleveland, Ohio. The firm has been doing well on the financial front as of late since it has beaten analyst adjusted EPS estimates in all four of its latest quarters. Argus was out with a bullish analyst note for Parker-Hannifin Corporation (NYSE:PH) in May 2024 which saw it raise the share price target to $590 from an earlier $550. Keeping a Buy rating on the shares, Argus outlined that Parker-Hannifin Corporation (NYSE:PH) can grow its revenue by as much as 4% which can lead to low double digit earnings growth. It added that a recent acquisition should help the industrial equipment company improve its margins.
Since it’s an industrial equipment company that benefits from stable orders, Parker-Hannifin Corporation (NYSE:PH)’s forward P/E ratio of 19.80 is lower than the market. This means that investors are looking elsewhere for growth. Diamond Hill Capital mentioned Parker-Hannifin Corporation (NYSE:PH) in its Q1 2024 investor letter which shared:
Diversified industrial and aerospace manufacturer Parker- Hannifin’s industrial business orders typically turn positive after five or six quarters of order declines. Accordingly, shares rose in Q1 in anticipation of a new cycle, implying a strong recovery for the company in the forthcoming calendar year.
8. Zoetis Inc. (NYSE:ZTS)
Number of Hedge Fund Shareholders In Q1 2024: 65
CEO: Kristin C. Peck
Zoetis Inc. (NYSE:ZTS) is a diversified animal healthcare company that provides medicines, diagnostic equipment, and other products. While its earnings performance has been mixed lately as Zoetis Inc. (NYSE:ZTS) has beaten adjusted analyst EPS estimates in just two of its four latest quarters, the average of 14 one year analyst share ratings is Strong Buy and the average share price target is $212.29. The latest earnings report released in May 2024 was a solid set of results. It saw Zoetis Inc. (NYSE:ZTS) beat adjusted EPS estimates of $1.35 and revenue estimates of $2.15 billion by posting $1.35 and $2.2 billion in the segments respectively. As a result, the shares soared by more than 4% after the earnings report.
Owing to its business model of being one of few pure play animal health companies on Wall Street enables Zoetis Inc. (NYSE:ZTS)’s forward P/E ratio of 29.76 to exceed the S&P’s 21. This implies that investors expect the shares to outpace the broader market in growth terms. Baron Funds mentioned Zoetis Inc. (NYSE:ZTS) in its Q1 2024 investor letter and shared:
Zoetis Inc. is a global leader in medicines and vaccines for companion and farm animals, operating in more than 120 countries across eight core species and five major product categories. Shares fell after the company reported mixed fourth quarter results that fell short of high market expectations and issued below-consensus 2024 guidance. While revenue beat Street forecasts primarily on higher sales in the livestock category, EPS missed consensus due to FX headwinds, costs associated with an acquired asset, and investments related to the U.S. launch of canine arthritis drug Librela. Investor concerns about new parasiticide competition and inefficiencies with the Librela ramp also weighed on the share price. Zoetis remains an attractive holding given its consistent above-market growth, diverse portfolio and rich pipeline, new and innovative product flow, and attractive end-markets that have proven resilient in periods of heightened economic uncertainty.
7. Equinix, Inc. (NASDAQ:EQIX)
Number of Hedge Fund Shareholders In Q1 2024: 66
CEO: Adaire Fox-Martin
Equinix, Inc. (NASDAQ:EQIX) is a specialized real estate company that enables businesses to secure space to set up their data centers. CEO Adaire Fox-Martin was brought on board in March 2024, and she previously worked at Google. Soon after her appointment was announced, well known short seller Hindenburg Research was out with a short seller report alleging accounting manipulations at the firm. However, in June Stifel stuck with a Buy rating and a $920 share price target for Equinix, Inc. (NASDAQ:EQIX). It shared that AI demand could prove to be a growth catalyst and investigations by the SEC and the DOJ into Equinix, Inc. (NASDAQ:EQIX)’s affairs are likely to yield favorable results.
Given the fact that Equinix, Inc. (NASDAQ:EQIX) sits smack in the middle of the AI industry through its data center offerings, a forward P/E ratio of 64.52 is unsurprising. It is 3x the S&P’s 21, and firmly places the stock into the growth category. Baron Funds mentioned Equinix, Inc. (NASDAQ:EQIX) in its Q1 2024 investor letter and shared:
Following strong relative and absolute performance in 2023, we reduced our position in leading global data center operator, Equinix, Inc., due to the Fund’s large position size and other compelling new investment ideas that we have been identifying. Equinix continues to be a core position in the Fund, and we remain optimistic about the long-term growth prospects for the company due to its interconnection focus among a highly curated customer ecosystem developed over the past 20-plus years, strong demand and pricing power, favorable supply backdrop, and evolving incremental demand vectors such as AI. We believe Equinix can continue to compound earnings at approximately 10% over the next few years and believe the prospects for strong shareholder returns remain compelling.
6. The Sherwin-Williams Company (NYSE:SHW)
Number of Hedge Fund Shareholders In Q1 2024: 78
CEO: Heidi G. Petz
The Sherwin-Williams Company (NYSE:SHW) is a diversified chemicals company headquartered in Cleveland, Ohio. The average of 23 one year share price targets for the firm is $343.43 and the shares are rated Buy on average. Amidst a slowing economy that is struggling with high rates and persistent inflation, BMO reduced its estimates for The Sherwin-Williams Company (NYSE:SHW)’s consumer division in June 2024. Its latest analyst note kept an Overweight rating on the shares but reduced the share price target to $360 from $377. However, the research firm added that the housing market could recover in 2025 to provide The Sherwin-Williams Company (NYSE:SHW) investors with growth.
Despite the fact that it is a stable home improvement stock, The Sherwin-Williams Company (NYSE:SHW)’s forward price to earnings ratio of 26.81 is slightly higher than the S&P’s 21. For our detailed take on SHW, please see 25 Best Dividend Aristocrats to Buy. The Sherwin-Williams Company (NYSE:SHW) CEO Heidi Petz expressed awareness of a slow market for her firm, but she remained optimistic during its latest earnings call. According to the executive:
Going forward, I believe in our differentiated strategy, our deeply experienced leadership and our team’s ability to execute in lockstep with our customers to deliver above market growth. Here are several of the leading indicators that give me great confidence that we continue to strengthen our position. For example, we increased the number of exclusive national contracts we have with homebuilders and property management customers in the quarter. New accounts and active purchasing accounts in our stores are up significantly from a year ago. Paint Stores Group rep call activity and unique accounts calls are also up in the quarter. Foot traffic in our stores is up and our net promoter score is at an all-time high. And we’re seeing multiple share of wallet and meaningful new customer wins across our industrial businesses.
5. General Motors Company (NYSE:GM)
Number of Hedge Fund Shareholders In Q1 2024: 78
CEO: Mary T. Barra
General Motors Company (NYSE:GM) is one of the oldest and most iconic car manufacturers in America. Amidst a tumultuous couple of months which have seen General Motors Company (NYSE:GM) resume its autonomous driving efforts and settle disputes with unions for a battery manufacturing facility. Citi kept its Buy rating for the shares and a $96 share price target in June 2024. The two key reasons behind the sustained optimism even as General Motors Company (NYSE:GM) has struggled in the EV industry are Citi’s belief that the US auto industry is robust and the car maker’s $11 billion share buyback. Between Q2 2024 and 2025, Citi now expects $7.1 billion in share buybacks which is significantly higher than the earlier estimate of $6.3 billion in buybacks.
General Motors Company (NYSE:GM)’s forward price to earnings ratio is just 5.02, which is less than 4x the S&P 500’s reading. This shouldn’t fool you though. We remember David Einhorn pitching GM at an investment conference more than 10 years ago and telling investors that GM’s PE ratio is 8 and it is an extremely cheap stock. If GM’s true PE ratio was really 8 and the company was managed by talented individuals, they would have bought back enough shares to buy 1.5 GMs in 12 years. GM is still an “extremely” cheap company after 12 years and it underperformed the market S&P 500 Index during this period. GM’s market cap is around $50 billion, but it also has nearly $100 billion in net debt. It is a risky stock with a bankruptcy in its history. Unless General Motors’ management demonstrates a clear commitment to prioritizing shareholder interests over those of employees, we remain cautious about the GM stock.
Diamond Hill Capital mentioned the firm in its Q1 2024 investor letter. Here is what the firm said:
Automobile manufacturer General Motors continues capitalizing on the shift to electric vehicles (EVs) while maintaining the strength of its core gas-engine truck and SUV business. Though it has experienced some setbacks — such as needing to roll back its Cruise driverless car project — we believe the company remains well- positioned relative to secular tailwinds within the automobile business.
4. Elevance Health, Inc. (NYSE:ELV)
Number of Hedge Fund Shareholders In Q1 2024: 79
CEO: Gail Koziara Boudreaux
Elevance Health, Inc. (NYSE:ELV) is a health benefits company headquartered in Indianapolis, Indiana. The average of 18 one year analyst share price targets for the firm is $609.25 while the shares are rated Strong Buy on average. Mizuho was impressed by Elevance Health, Inc. (NYSE:ELV)’s future EPS projections in April 2024 when it raised the firm’s share price target to $585 from $575 and kept a Buy rating on the shares. The firm shared that it now believes that Elevance Health, Inc. (NYSE:ELV)’s adjusted EPS in 2024 and 2025 will be $37.30 and $41.60, respectively, which marks a $0.10 growth over earlier estimates. One factor that affected Mizuho’s optimism was Elevance Health, Inc. (NYSE:ELV)’s partnership with a private equity firm in April which saw it expand its primary care options by considering a patient’s holistic profile.
Elevance Health, Inc. (NYSE:ELV)’s forward price to earnings ratio is 14.47, but it’s been around these levels most of the time over the last decade, yet the health insurance company managed to outgrow the market and outperform the S&P 500 Index. Artisan Partners mentioned Elevance Health, Inc. (NYSE:ELV) in its Q4 2023 investor letter where it shared that the firm “benefits from continued growth in health care expenditures as our society ages.”
3. The Progressive Corporation (NYSE:PGR)
Number of Hedge Fund Shareholders In Q1 2024: 85
CEO: Susan Patricia Griffith
The Progressive Corporation (NYSE:PGR) is a diversified insurance company that offers property, auto, casualty, and other insurance products. The firm has been performing well on the financial front lately since it has beaten adjusted analyst EPS estimates in three out of its four latest quarters. BMO joined the chorus of optimism surrounding The Progressive Corporation (NYSE:PGR)’s shares in May 2024 when it raised the share price target to $235 from $234 and kept an Outperform rating on the shares. The firm shared that it expects a strong auto insurance market in the future where specialty firms stand to benefit. This report, which came courtesy of Boyd Group, also suggested similar potential strength for the home insurance market – another segment where The Progressive Corporation (NYSE:PGR) is present.
The Progressive Corporation (NYSE:PGR)’s forward price to earnings ratio is 20, which is roughly in line with the S&P’s 21. This indicates that investors expect the stock to grow in line with the broader index. Madison Investments mentioned the firm in its Q1 2024 investor letter. Here is what the firm said:
Two of our insurers, Arch Capital and Progressive, were also large contributors during the quarter. While they participate in different areas of the insurance market, with Arch generally focused on commercial lines and Progressive on personal lines, they both are benefiting from attractive market conditions, which has boosted underwriting profits. Also, investment income should continue to rise as they roll over the fixed income portfolios at more favorable coupon rates.
2. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Shareholders In Q1 2024: 96
CEO: Safra Ada Catz
Oracle Corporation (NYSE:ORCL) is an American enterprise computing company headquartered in Austin, Texas. It’s one of the strongest players in the AI market because of its commanding position in the cloud computing market. Oracle Corporation (NYSE:ORCL)’s shares are up 34% year to date, and the stock soared by more than 10% in June 2024 after its fourth quarter and full year results saw CEO Safra Catz announce that Oracle Corporation (NYSE:ORCL) had landed its “largest sales contracts” in history which built on $12.5 billion of sales contracts in Q4. Following the results, Evercore ISI raised Oracle Corporation (NYSE:ORCL)’s share price target to $160 from $145 and kept an Outperform rating on the shares. Evercore believes that Oracle Corporation (NYSE:ORCL) will continue to grow in 2025, and attract mega cap Amazon into its fold as well.
Considering these developments, Oracle Corporation (NYSE:ORCL)’s forward price to earnings ratio of 22, which suggests an in line growth with the broader market, might be slightly off target. Hedge funds actually think Oracle is undervalued at its current price. Oracle’s popularity among hedge funds skyrocketed recently, making it one of the 31 Most Popular Stocks Among Hedge Funds. Here’s what Madison Funds had to say about the firm in its Q4 2023 investor letter:
Oracle reported a disappointing second quarter due to supply constraints. Cloud revenue was below expectations as Oracle made planning decisions to accommodate some large-scale Oracle Cloud Infrastructure (OCI) clients that take longer to bring online. We continue to believe that Oracle has a unique position in Generative AI workloads and continue to like its position and strategy.
1. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Shareholders In Q1 2024: 124
CEO: Dr. Lisa T. Su Ph.D.
Advanced Micro Devices, Inc. (NASDAQ:AMD)’s CEO Dr. Lisa Su is widely heralded as one of the most successful executives in the semiconductor industry. Under her leadership, AMD has transformed itself from a loss making entity to a profitable company that competes with Intel on the back of product design and cost advantages. Like Intel, Advanced Micro Devices, Inc. (NASDAQ:AMD) is also targeting the AI industry with a diversified product portfolio. Susquehanna is also quite optimistic for Advanced Micro Devices, Inc. (NASDAQ:AMD), as it raised the firm’s share price target to $200 from $185 in June 2024 and kept a Positive rating on the shares. The firm shared that Advanced Micro Devices, Inc. (NASDAQ:AMD) has gained market share in the PC and data center markets, and that it can continue to benefit from Intel’s manufacturing woes.
A classic growth stock, Advanced Micro Devices, Inc. (NASDAQ:AMD)’s forward price to earnings ratio of 46.73 is more than twice the market’s 21. This implies that investors continue to expect it to outpace the market in growth. Meridian Funds mentioned Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2023 investor letter and shared:
Advanced Micro Devices, Inc. is a global semiconductor chip maker specializing in central processing units (CPUs), which are considered the core component of most computing devices, and graphics processing units (GPUs), which accelerate operations running on CPUs. We invested in 2018 when it was a mid-cap value stock plagued by many years of underperformance due to lagging technology and lost market hishare versus competitors Intel and Nvidia. Our research identified that changes and investments made by current management under CEO Lisa Su had, over several years, finally resulted in compelling technology that positioned AMD as a stronger competitor to Nvidia and that its latest products were superior to Intel’s. We invested on the the belief that AMD’s valuation at that that time did not reflect the potential for its technology leadership to generate significant market share gains and improved profits. This thesis has been playing out for several years. During the quarter, AMD unveiled more details about its upcoming GPU products for the AI market. The stock reacted positively to expectations that AMD’s GPU servers will be a viable alternative to Nvidia. Although we pared back our exposure to AMD into strength as part of our risk-management practice, we maintained a position in the stock. We believe AMD will continue to gain share in large and growing markets and is reasonably valued relative to the potential for significantly higher earnings.
While we acknowledge the potential of AMD as an AI play, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None.
