Stock Market News

Potential in New S&P 500 Entrants

4 days ago
4 days ago


Breaking News: S&P 500 Adds Four New Stocks, Including DoorDash

The S&P 500 index has recently undergone a quarterly rebalancing, resulting in the addition of four new stocks to ensure representation of the 500 largest stocks on U.S. markets. Let’s dive into the details of these new additions and what they mean for investors:

New Additions to the S&P 500:

  1. DoorDash (NASDAQ:):
    • A restaurant delivery service
    • Stock up 19% this year, trading at around $200 per share
    • Median price target of $226 per share, indicating 12.5% upside over the next year
  2. TKO Group Holdings (NYSE:):
    • Company that owns WWE and UFC
    • Stock up 8% YTD and 79% over the past 12 months
    • Trading at around $154 per share with a price target of $170 per share, implying an 11% increase
  3. Williams-Sonoma (NYSE:):
    • Specialty retailer
    • Stock down 8% YTD but gained 9% over the past year
    • Trading at $170 per share with a $180 per share median price target, representing about 7% growth
    • Recently increased dividend to 66 cents per share, marking the 19th consecutive year of dividend raises
  4. Expand Energy (NASDAQ:):
    • A producer
    • Stock up 10% YTD and 26% over the past 12 months
    • Trading at $109 per share with a median price target of $123.50, suggesting a 13% gain over the next year

      Who’s Out?

      The addition of four new stocks to the S&P 500 means that four stocks have been removed from the index. These stocks include:

    • BorgWarner (NYSE:)
    • Teleflex (NYSE:)
    • Celanese (NYSE:)
    • FMC Corp. (NYSE:)

      Although these stocks have been removed, some of them, like BorgWarner, still have high upside potential, with a median price target indicating a 30% increase.

      Changes in the S&P 100:

    • Palantir (NASDAQ:) has joined the S&P 100 after its recent addition to the S&P 500. The company has shown significant growth and is one of the top-performing AI stocks.
    • Other new entrants in the S&P 100 include Intuitive Surgical (NASDAQ:) and ServiceNow (NYSE:).

      Stocks that dropped out of the S&P 100 index include chemical company Dow (NYSE:), food company Kraft Heinz Co (NASDAQ:), and automaker Ford (NYSE:).

      This reshuffling in the S&P 500 and S&P 100 indices reflects the dynamic nature of the stock market and presents opportunities for investors to capitalize on emerging trends and growth sectors.

      —

      Analysis: The recent changes in the S&P 500 and S&P 100 indices highlight the evolving landscape of the stock market. The addition of new stocks like DoorDash and Palantir signifies the growing importance of technology and consumer services sectors. Investors should pay attention to these developments as they may present lucrative investment opportunities with high growth potential. Additionally, the removal of certain stocks does not necessarily indicate poor performance but rather reflects the need for index rebalancing to accurately represent the largest companies in the market. By staying informed about these changes, investors can make informed decisions to optimize their portfolios and achieve long-term financial success.

Shares: