- 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.
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UBS found a surprising driver of stock market returns — and these 15 stocks could be set to benefit
Retail and tech are industries that rely heavily on employee motivation. Here is a list of companies in those sectors that get the most out of each employee.
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.
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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.
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:
Costco Wholesale Corporation
Glassdoor Score: 3.85
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Sector: Retailing
Ticker: COST-US
Rating: Buy
Home Depot, Inc.
Glassdoor Rating: 3.62
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Sector: Retailing
Ticker: HD-US
Rating: Buy
TJX Companies Inc.
Glasdoor Rating: 3.54
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Sector: Retailing
Ticker: TJX-US
Rating: Buy
Lowe's Companies, Inc.
Glassdoor Rating: 3.46
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Sector: Retailing
Ticker: Low-US
Rating: Buy
Adobe Systems Incorporated
Glassdoor Rating: 4.43
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Sector: Tech
Ticker: ADBE-US
Rating: Buy
Salesforce.com, Inc.
Glassdoor Rating: 4.42
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Sector: Tech
Ticker: CRM-US
Rating: Buy
NetApp, Inc.
Glassdoor Rating: 4.40
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Sector: Tech
Ticker: NTAP-US
Rating: Buy
Microsoft Corporation
Glassdoor Rating: 4.20
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Sector: Tech
Ticker: MSFT-US
Rating: Buy
Cisco Systems, Inc.
Glassdoor Rating: 4.17
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Sector: Tech
Ticker: CSCO-US
Rating: Buy
Apple Inc.
Glassdoor Rating: 4.06
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Sector: Tech
Ticker: AAPL-US
Rating: Buy
Expedia, Inc.
Glassdoor Rating: 4.01
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Sector: Tech
Ticker: EXPE-US
Rating: Buy
Amazon.com, Inc.
Glassdoor Rating: 3.99
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Sector: Tech
Ticker: AMZN-US
Rating: Buy
Intel Corporation
Glassdoor Rating: 3.98
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Sector: Tech
Ticker: INTC-US
Rating: Buy
Yahoo Japan Corporation
Glassdoor Rating: 3.81
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Sector: Tech
Ticker: 4689-JP
Rating: Buy
eBay Inc.
Glassdoor Rating: 3.71
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Sector: Tech
Ticker: EBAY-US
Rating: Buy
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