Ticker is important. I would think long and hard what mine would be.
Cool tickers in this study are, admittedly, solely defined by
Barron’s. We included companies such as:
Harley-Davidson ,
Molson Coors Brewing (TAP) and
YUM Brands (YUM). Still, longer tickers, cool tickers, and even tickers that spell words trounce the stock returns of short and single-letter issues. Our “cool” category of ticker symbols were up an average of 17.5% annually over the last five years, versus just 3.7% for companies with single-letter tickers.
https://www.barrons.com/articles/stock-ticker-symbols-performance-51562102318
What’s in a name? At
Barron’s, we prefer to ask, what’s in a ticker?
Those one to four (and occasionally five) letter identifiers that investors use to trade stocks are often a jumble of characters. But occasionally, tickers are unique or interesting enough to bring context all on their own. There’s newly public
Slack Technologies , with its “WORK” symbol, for instance. Or
Harley-Davidson ’s “HOG”
We recently wondered if tickers mattered to stock performance after the strong showing from several new issues with, well, cool ticker symbols.
Can investors really beat the stock market by simply paying attention to ticker symbols? It doesn’t make any intuitive sense but what
Barron’s found may surprise you.
Take Slack and its neat ticker. The company is a cloud based, work productivity tool that
aims to replace email. After
its listing in June, Slack’s market capitalization hit more than $23 billion, making it one of the 50 largest domestic software companies. The
Beyond Meat (BYND) ticker is, of course, “beyond” minus the vowels, and its shares briefly cracked $200, up more than 700% from its $25 offering price.
Levi Strauss (LEVI), maker of cool clothes to go along with its cool ticker, has returned almost 25% since
returning to public markets in March.
Those stocks are up because of sales growth and attractive business models and not catchy tickers. But is there anything about a company’s stock ticker that is predictive of stock returns? The table suggests a clear correlation.