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The Street
The Street
By Dan Weil BofA identifies companies where a key measure poses a risk to profits. Wages are on the rise, with average hourly earnings jumping 5.2% in the 12 months through May. Employee compensation, of course, is a major part of corporate costs. And rising costs can depress a company’s earnings. You might want to think twice about buying the stock of a company whose wage costs are cutting into profit. “Wage inflation is a big risk to earnings, especially for labor-intensive businesses,” Bank of America strategists wrote in a commentary. They ranked S&P 500 companies by how labor intensive th…
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