9 Women-Run Companies to Invest In

 In the United States, women-owned businesses are expanding at more than twice the pace of other companies. These enterprises are responsible for 23 million jobs and contribute almost $3 trillion to the economy. As women continue to secure a larger presence in the corporate sector, there are increasing opportunities to include their businesses in your investment portfolio. Whether you prefer ETFs or individual stocks, here are nine women-owned companies worth considering.

Reasons to Invest in Women-Owned or Led Businesses

Many investors seek to align their investments with their personal values, whether through environmental, social, and governance (ESG) criteria or by supporting female- or minority-owned enterprises. Investing in women-owned businesses can promote diversity and representation within corporate America. Despite comprising over half of the U.S. population, women held only 15 CEO positions at Fortune 500 companies as of 2022. Additionally, just 5.2% of chief executives in the country are Black, even though they represent about 13.6% of the population.

In 2023, companies founded by women received a mere 2.1% of total venture capital funding in the U.S., highlighting a significant financial disparity that investing in these businesses could help address. Furthermore, such investments may offer better returns; a study by Boston Consulting Group revealed that startups founded or co-founded by women generated 10% more cumulative revenue over five years compared to those founded by men.

Top Women-Owned and Women-Run Businesses Worth Investing In

1. Arista Networks
   Arista Networks (ANET) is a frontrunner in cloud-to-client networking, catering to large data centers, campuses, and routing environments. With over 9,000 cloud clients, including numerous Fortune 500 companies, the company is led by CEO Jayshree Ullal. She has been instrumental since its early days and spearheaded its landmark IPO in 2014. Under her guidance, Arista has seen rapid growth with earnings increasing at a rate of 26.9% over the past five years and an impressive 63.2% last year. The company also boasts a strong return on equity (ROE) of 29%.
2. Chart Industries
   Chart Industries (GTLS), under CEO Jillian Evanko since 2018, manufactures cryogenic gas processing and storage equipment. Evanko's financial acumen has significantly contributed to the company's success; Chart's stock value has doubled since she assumed leadership roles within the company in 2018 after serving as CFO and chief accounting officer. Their market dominance was further solidified with the acquisition of Howden in 2022, setting them up for even greater expansion.
3. The Hershey Company
   Michele Buck has led Hershey (HSY) as CEO since March 2018 after joining the company in various senior roles since 2005. With extensive experience from Kraft Nabisco and PepsiCo’s Frito-Lay division, Buck's leadership has nearly tripled Hershey’s stock value to $274.04 as of May 2023 through strategic acquisitions—over twenty to date.
4. Progressive Corp
   Progressive Corp (PGR), already a major player in insurance, saw enhanced growth under Tricia Griffith who became CEO in 2016 after more than three decades with the company. The stock shows a five-year total return of nearly double at 199%. Despite economic challenges, Progressive reported an annual revenue increase of $62.11 billion for 2023—a rise of over 25% from the previous year.
5. Zoetis
   Zoetis (ZTS), once part of Pfizer but now leading animal health care under CEO Kristin Peck since January 2020, delivers medicines and diagnostics globally for livestock and pets alike—a growing market trend favoring their products due to rising pet ownership rates globally—and posted total returns exceeding S&P500 benchmarks at around +35%. Earnings per share have consistently grown by about +16% year-on-year until Q4-23.

Sunrun
Mary Powell leads Sunrun (RUN)—the nation’s top home solar/battery storage/energy services provider—since August '21 following co-founder Lynn Jurich’s tenure; despite some volatility analysts remain optimistic about long-term prospects given recent cross above critical moving average indicators mid-December '23 reaching highs above $18/share signaling positive momentum shifts ahead.

Accenture
Global IT-services giant Accenture ACN helmed Julie Sweet starting mid-'19 commands respect via innovative consulting outsourcing solutions benefiting from vast workforce diamond client accounts generating substantial revenues topping $64B'23 supported steady sustainable growth positioning them competitively against smaller peers industry-wise overall economic moat remains significant due size scope operations clientele roster top-tier global firms alike.

Veracyte

From 2008 to 2016, Bonnie Anderson, the founder of Veracyte (VCYT), held the position of CEO before handing over the reins to Marc Stapley. Anderson continues her involvement with the company as executive chairman. Veracyte is a global diagnostics firm that aids clinicians in diagnosing and treating cancer through various insights and testing services. Over the past five years, Veracyte has demonstrated consistent stock performance alongside significant growth in revenue, income, and profit margins—recording increases of 35.1%, 51.6%, and 64.2% respectively.

Criteria for Woman-Owned Business Status

To be recognized under the Women-Owned Small Business (WOSB) Federal Contract program, a business must be at least 51% owned and controlled by women who are U.S. citizens. Additionally, women must oversee daily operations and make long-term strategic decisions. Businesses meeting these criteria can apply for certification as a woman-owned entity, which is not mandatory but provides access to federal contracts and economic resources.

Steps to Invest in Women-Owned Businesses

Identify companies that interest you.

1. Monitor their performance by examining stock activity, financial health, news updates, financial statements, earnings reports, etc.
2. When ready to invest, use your brokerage platform or consult a financial advisor to purchase shares by specifying the number of shares and type of order (e.g., market order or limit order).

Alternatively, consider investing in an exchange-traded fund (ETF) focused on female-owned companies. ETFs typically include multiple companies across different investment types such as stocks, commodities, and bonds.

Conclusion

Investing in successful women-led public companies offers opportunities for both investors and these businesses while promoting diversity and gender equality in corporate leadership—a factor linked with improved long-term financial performance according to research findings. Always conduct thorough research on a company's stock performance and overall financial health before making any investment decisions.