In a setting historically dominated by male leadership, women at the helm of major corporations is still considered something of a novelty. You don’t see many articles about a company’s first male CEO, but there’s always a buzz when the first woman gets hired to the same position.
As of January 2023 only 10% of the Fortune 500 companies were run by a woman. That’s surprising considering a study conducted by S&P Global found that in the two years following their appointment, “female CEOs saw a 20% increase in stock price momentum.” Companies with more gender diversity on their board of directors are also more profitable.
Investors may not specifically consider stocks with women CEOs when looking at here to invest. However, the women on this list and the companies they represent are great examples of how female leadership can turn a company around or help it continue to thrive in an otherwise tumultuous market. Their different upbringings and paths to business bring a unique perspective that can change the outlook of a company.
Revving Up: General Motors (GM)
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Mary Barra has been the CEO of General Motors (NYSE:GM) since January 2014. She is the first female CEO of the “Big Three” automakers that includes Ford (NYSE:F) and Stellantis (NYSE:STLA). She is currently the only female CEO in the U.S. auto industry.
Year-to-date (YTD), GM stock is up 23.51%. According to Tip Ranks, it has the best price-to-earnings (P/E) ratio of all its competitors at 6.04. Tesla (NASDAQ:TSLA), currently struggling, stands at 38.32. GM has a 15.69% upside with an average price target of $51.17. Based on 19 ratings, analysts consider GM a moderate buy, but Barra has a history of navigating GM through some of its toughest challenges. The future of the company looks bright under her continued leadership.
In her time as CEO, Barra has spearheaded the process of modernizing General Motors, focusing on the development of electric vehicles (EVs) and improving customer experience. She has also championed the cause of diversity, equity and inclusion (DEI), which many business executives believe is important for positive business growth. Thanks to her efforts and successes, she was inducted into the Automotive Hall of Fame in 2023.
The average tenure of a Fortune 500 CEO is 7.2 years for men and 4.5 years for women. Clearly Barra is doing something right. Not only has she doubled the time in her position as the average female CEO but outperformed her male counterparts as well. Her length of time in the job must mean she’s doing something right. As the auto industry continues to face challenges, Barra’s strong leadership at GM make it not just one of the great stocks with women CEOs, but also a great choice for automotive stocks as well.
Healthy Investments: CVS Health (CVS)
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Karen Lynch has been CEO of CVS Health (NYSE:CVS) since February 2021. While she’s only been at the company a short time, she has made waves with her new approach to the healthcare industry. Part of her grand plan for CVS is to create better health outcomes in the community, including a focus on how the company addresses Medicare as the ever-increasing senior population turns 65.
With a current average price target of $87.88, CVS stock has a 17.83% upside. While YTD it’s down 8%, it’s doing considerably better than rival Walgreens Boots Alliance (NASDAQ:WBA), which is down 28% in the same time frame. Walgreens is not doing well right now, while CVS’ performance in 2023 points toward a much healthier future. Recently, the quarterly dividend for CVS was increased by 10%, indicating confidence in the company’s financial future.
Lynch recently published “Taking Up Space: Get Heard, Deliver Results, and Make a Difference.” In it, she chronicles her rise to becoming CEO of the sixth-largest Fortune 500 company. Her barrier-breaking attitude towards life is mirrored in her approach to business, and that bodes well for CVS.
The Tech Titan: Advanced Micro Devices (AMD)
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Lisa Su has been the CEO of Advanced Micro Devices (NASDAQ:AMD) since October 2014. Like Barra, Su has held her position as CEO longer than most others on the Fortune 500 list. She has also led the company through one of the greatest recent turnarounds in the technology sector.
If you invested $10,000 at the time Su became CEO, you’d have over $430,000 today. The company was on the edge of bankruptcy when she took over. Her vision, though, led the company to shed its investments in unnecessary divisions. Instead, she honed in on its money-makers: high-performance central and graphics processing units (CPUs and GPUs).
While Nvidia seems to be every investor’s favorite tech stock darling right now, AMD is a solid competitor. Nvidia CEO Jensen Huang is actually a first cousin once removed of Su, so they’ve kept their success in the family. Despite concerns that both AMD and Nvidia are overvalued, some think AMD is still a good buy. According to TipRanks, there’s still a potential 18.56% upside in comparison to NVDA’s 12.65%. Su’s unique perspective as a female leader in the artificial intelligence (AI) and technology sector might just provide the edge the company needs to outperform its industry sibling.
On the date of publication, Philippa Main did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Philippa Main is a real estate agent in Virginia and Florida who also does freelance writing, editing, and business development and marketing. She uses her broad knowledge of the real estate market to inform her investing decisions in an array of different industries. She also enjoys working specifically with women to educate them about finance and investing.