The S&P 500, a leading benchmark in the stock market, holds shares in 500 companies ranked by market cap. Trillion-dollar corporations have a significant influence on the index. The Magnificent Seven stocks continue to impact the market’s performance due to this market cap-weighted setup.
Companies must meet specific criteria to be included in the index, such as profitability in the most recent quarter and market caps above $18.0 billion. Stocks often experience price surges upon joining the index, as fund managers rush to buy shares of newly added companies.
Palantir (PLTR)
Palantir (NYSE: PLTR), a big data analytics company, has seen significant growth in recent years, with a 79% year-to-date gain. The company’s revenue growth, profitability, and market cap of $67 billion make it a strong candidate for S&P 500 inclusion.
Duolingo (DUOL)
Duolingo (NASDAQ: DUOL), a language learning app, has been profitable for several quarters, with expanding profit margins. Despite a decline in share price, the company’s exceptional financial growth suggests potential for a rally and future S&P 500 inclusion.
Dell (DELL)
Dell (NYSE: DELL), an AI beneficiary with a $68 billion market cap, has experienced significant growth and positive net income. With strong revenue growth and profit margins, Dell is poised to outperform the market and potentially join the S&P 500.
Overall, these companies represent promising investment opportunities with the potential for significant growth. As they meet the criteria for S&P 500 inclusion, investors may benefit from adding these stocks to their portfolios.
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