Stock Performances Linked to Employee Health and Wellness Programs

Stocks of companies with outstanding employee health and wellness programs are among the list of hot picks for 2016. According to new studies published in the Journal of Occupational and Environmental Medicine, the stock performance of these corporations outperforms the Standard & Poor’s (S&P) 500 Index.

Three research teams performed assessments to understand the impact of effective health and wellness programs to the company’s stock valuation. Their findings showed that investing in these firms yields higher returns than in the S&P 500. A high market valuation is considered an affirmation of business success by Wall Street investors.

Dr. Michael Patterson, of the University of Michigan, clarified said that firms with excellent health and wellness programs “also understand how to manage their core business in such a way that revenues and profits will grow which in turn causes the stock value to outperform the market."