UBS found a surprising driver of stock market returns - and these 15 stocks could be set to benefit
Justin Sullivan/Getty
- In sectors that rely on human capital, employee satisfaction can be a big driver of company success.
- Glassdoor ratings and company performance are well correlated, according to UBS.
- The Swiss bank identified 15 companies that have high Glassdoor ratings that investors should consider.
Employee motivation may not be the first thing that comes to mind when considering which stocks will perform well. But according to UBS, it's a key factor for certain companies that investors should be paying attention to.
"In sectors where human capital is a significant component of firm value, companies with relatively higher employee motivation have a competitive advantage which should result in improved financial statement quality and growth over the long term," analyst Oliver Antrobus wrote in the note.
UBS looked at Glassdoor employee ratings of companies, and found a strong correlation between employee satisfaction and future financial results.
A UBS graph shows that companies with relatively high Glassdoor employee satisfaction scores yield excess returns relative to portfolios of retailing stocks. The reverse is true for companies with poor Glassdoor scores.
UBS
A Glassdoor rating of 3 indicates that employee satisfaction is average. A rating of 5 shows the most satisfaction, and 1 the worst.
Here is UBS' list of fifteen promising stocks of companies with high employee satisfaction:
This story was originally published by Glassdoor.
- US buys 81 Soviet-era combat aircraft from Russia's ally costing on average less than $20,000 each, report says
- 2 states where home prices are falling because there are too many houses and not enough buyers
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- Markets rebound sharply on buying in bank stocks firm global trends
- Bengaluru's rental income highest in Q1-2024, Mumbai next: Anarock report
- Rupee falls 10 paise to settle at 83.48 against US dollar
- Include 4 hrs of physical activity, 8 hrs sleep in routine for optimal health, suggests study
- 11 must-visit tourist places in Nainital in 2024