Healthcare stocks have experienced strong growth thanks to EURO 2016. Meanwhile, sports or technology stocks have shown a very disappointing performance.
If your dream team is a stock portfolio, which stock will you choose to enter, especially during a major sporting event? Just before the start of EURO 2016, CNBC tested the potential of players (stocks) that should be in your team, based on Kensho’s quantitative data analysis tool.
In the previous EURO season, the Stoxx Europe stock index of health service companies was more surprising with profits rising an average of over 2%, including companies such as Smith & Nephew, GSK and Shire. In contrast, technology stocks had the most disappointing performance, losing more than 2% on average during the same period.
Some analysts also made their own choices during sports tournaments. In April, the European financial conglomerate chose stocks from betting and travel companies such as PaddyPower Betfair and EasyJet.
However, in the previous season, these two groups of stocks were not successful when losing an average of 3% during the last 3 matches of the final round. Meanwhile, Punch Taverns, one of the UK’s largest bar and pub companies, also had a 20% share decline throughout the season. A stock expected to have a positive performance is the UK’s largest sports retailer: Sports Direct also saw a nearly 5% decline in stock value in the last two matches of last season.
Adidas stock, the official sponsor of the EURO tournament, is also an object that investors will watch closely. According to data from Colin Cieszynski, this stock tends to level off while matches take place and plummets both before the season starts and after the season ends.
For UK only, Investec Wealth & Investment said June could be a very good month for pub businesses. And from an economic point of view, this could be profitable for the country’s travel and entertainment stocks.