Friday's jobs report came in slightly worse than expected, but the big story was wage growth in October. Average hourly earnings posted a 2.8 percent annualized increase, the biggest jump in seven years.
So which stocks should investors buy or avoid as wage growth accelerates?
Fundstrat's Tom Lee recently analyzed which stocks win when wage growth is on the rise.
"Wage inflation sensitivity [is] beginning to impact stocks," the strategist wrote in a note to clients last Friday. "Stocks with low wage sensitivity outperformed ... since May."
Fundstrat's wage sensitivity methodology is to rank companies by the market value per employee ratio. He found that companies with the lowest number of employees relative to their size perform the best in the stock market during environments of wage inflation.