Why a Broncos Win Bodes Well For These 25 Stocks

Smith & Wesson Holding Corp (SWHC), Amazon.com, Inc. (AMZN), and NVIDIA Corporation (NVDA) are among the stocks that have outperformed when the Broncos win the Super Bowl

by Alex Eppstein

Published on Feb 8, 2016 at 3:32 PM

As we've said in the past, stocks generally fare better when the NFC beats the AFC in the Super Bowl. In other words, the Carolina Panthers' prime-time flop bodes poorly for the broader market -- as is already evident given today's dramatic sell-off -- and especially these 20 stocks.

Below are two charts from Schaeffer's Senior Quantitative Analyst Rocky White that examine the Dow's performance for the six months following the Super Bowl and for the rest of the year. From a historical perspective, things look pretty bleak now that the Denver Broncos have pulled off the victory -- with next to no help from serial endorser Peyton Manning. Not only are average returns during the two time spans significantly lower for an AFC win vs. an NFC win, but the percent positive falls off quite a bit, too.

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On the other hand, the future looks bright for these 20 stocks that were pulling for a Broncos win. If that's not enough, a closer look at the Dow's performance following Denver's two previous Super Bowl victories reveals that things really aren't so bad even though the team's in the "wrong" conference.

In fact, per the chart below, compared to all the AFC squads ever to have won a Super Bowl, the Broncos result in the highest average rest-of-year return for the Dow at 21%. It's quite a fall-off to the next-best team, the Pittsburgh Steelers -- though the sample size is three times larger. In other words, this year's AFC Super Bowl win is no reason to panic.

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Expanding our view beyond the Dow, what stocks have performed best after those two previous Broncos' Super Bowl wins? The list is below, and features a number of high-profile names, including Smith & Wesson Holding Corp (NASDAQ:SWHC)Amazon.com, Inc. (NASDAQ:AMZN), and NVIDIA Corporation (NASDAQ:NVDA).

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