VSCompanies that inconvenience their employees tend not to get full effort from their staff. On the other hand, companies that are great to work for receive more effort from employees because workers believe in mutual benefit. Investors can capitalize on this information when researching and buying stocks: companies that treat their employees well are likely to be solid investments.
Fortunately, this can be an easy measure to find. Over the past 25 years, Fortune published a list of the 100 best companies to work for, informing future employees and investors about companies that treat their workers well. Selling power (NYSE: CRM)Nvidia (NASDAQ: NVDA), and Accenture (NYSE:ACN) all are among the top 10 companies on the list. With good reason, these three companies have proven to be fantastic investments over the past decade and have solid prospects.
1. Sales force
One of the first software-as-a-service companies, Salesforce helps with customer relationship management (CRM). Salesforce describes it as “a technology to manage all of your company’s relationship interactions with customers and prospects.” Its tools include marketing, sales management, and customer service, making its product essential for customer retention. Almost every business needs some form of CRM, whether through software like Salesforce or through personal interaction.
For its 2022 fiscal year (ending Jan. 31), Salesforce posted revenue of $26.5 billion, up 25% year-over-year. While the company’s operating margin reached a little more break even at 2.1% according to generally accepted accounting principles (GAAP), its non-GAAP operating margin was 20% for the whole year. Management expects sales growth of 21% for fiscal 2023 with a non-GAAP operating margin of 20%.
Salesforce has established itself as the best CRM software for large businesses, but among small businesses it has a fierce competitor in HubSpot (NYSE: HUB). Still, the biggest contracts are with the biggest companies, where Salesforce reigns supreme.
Trading at just under seven times sales – the lowest ratio since the pandemic-induced stock market crash in March 2020 – Salesforce is a great buy at these levels.
Nvidia produces the best graphics processing units (GPUs) in the world. This hardware can power gaming computers and data centers, and instruct artificial intelligence. Of the 500 most powerful computers known, 70% use Nvidia products. In the future, 90% of new systems should use Nvidia technologies. According to Fortune, company employees benefit from two scheduled rest days per quarter and unlimited days off; programs like this generate high employee satisfaction.
Of the three companies listed in this article, Nvidia is the strongest when it comes to finances. For fiscal 2022 (ending Jan. 30), the company grew revenue 61% to $26.9 billion while increasing net revenue 125% to $9.8 billion, a margin of 36%. The company expects its Data Center division to drive growth in the first quarter of fiscal 2023, as this sector is expected to outpace the 11% quarter-over-quarter growth seen in the longest period. recent.
Over the past two years, Nvidia has typically traded at around 80 times earnings, but investors can currently access this stock at the much lower price of 55 times earnings. The chipmaker is a solid investment at this price, down more than 35% from its peak. Now is the perfect time for investors to take advantage of a high-growth business.
Accenture operates a global consultancy business, incorporated in Dublin but with operations in multiple geographic locations across multiple industries. It’s a very diverse company, with expertise in cloud infrastructure, cybersecurity, and financial services.
The multi-faceted company closed the second quarter of its fiscal 2022 on February 28. During this period, Accenture generated $15 billion in revenue, growing 24% in US dollars or 28% in local currency. Excluding a one-time investment gain, its earnings per share (EPS) rose 25% year over year. Accenture set a bookings record this past quarter, bringing in $19.6 billion in outsourced consulting work.
Compared to Salesforce and Nvidia, which are slightly newer companies, Accenture returns a significant portion of its profits to shareholders in the form of dividends and buybacks. With a dividend yield of 1.2% and the authorization to repurchase $4.6 billion of shares (more than 2% of its market capitalization), Accenture is an excellent long-term investment.
Long term performance
Over the past five years, each of these three companies has outperformed the market.
Investing in the most notable companies to work for has been a sound investment strategy. The list is full of other great ideas; take a look to inspire new investments for your investment portfolio.
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