Another Weekly Session with Loui, M+ Online Head of Research.
What has happened? On 7th of June, S & P announced the inclusion of 3 companies into the S&P 500 index. The influx of new companies into the S&P 500 can be an interesting time for traders and it signals growth in certain sectors and potentially presents opportunities.
What is S&P 500 Inclusion? The S&P 500 is a stock market index that tracks the performance of 500 large-cap companies listed on stock exchanges in the United States. Inclusion in this index can be a sign of a company's financial strength and stability. It can also lead to increased investor interest in the company's stock.
Brief introduction of the companies being included into S&P500.
ā¢ KKR ( $KKR & Co. L.P. KKR$ ): A leading global investment firm specializing in private equity, credit, and real estate investments.
ā¢ CrowdStrike Holdings ( $CrowdStrike Holdings CRWD$ ): A cybersecurity company that provides cloud-delivered endpoint protection and threat intelligence services.
ā¢ GoDaddy ( $GoDaddy, Inc. Class A GDDY$ ): A provider of domain registration and web hosting services for individuals and businesses.
Recent statistics on the S&P500 inclusion
Decent performance. From the table below, we have compiled the recent 10 inclusions, and we have an average performance of 3% and 7% for T+1 and T+30 after the announcement was made, which is encouraging enough for traders to look into S&P inclusion as a decent alpha strategy going forward.
| Ticker | Company Name | Announcement date | Announced Date Price | T+1 Last Price | T+30 Last Price | 1-day performance (%) | 30-day performance (%) |
| VST | $Vistra Energy Corp. VST$ | 3-May-24 |
81.49 |
83.24 |
93.25 |
2% |
14% |
| GEV | $GE Vernova Inc. Common Stock GEV$ | 27-Mar-24 |
131.25 |
136.75 |
148.31 |
4% |
13% |
| SOLV | $Solventum Corporation Common Stock SOLV$ | 27-Mar-24 |
75 |
69.55 |
61.83 |
-7% |
-18% |
| SMCI | $Super Micro Computer, Inc. SMCI$ | 1-Mar-24 |
905.48 |
1074.34 |
1037.15 |
19% |
15% |
| DECK | $Deckers Outdoor Corporation DECK$ | 1-Mar-24 |
903.29 |
926.58 |
930.5 |
3% |
3% |
| UBER | $Uber Technologies,Inc. UBER$ | 1-Dec-23 |
57.35 |
58.63 |
61.57 |
2% |
7% |
| JBL | $Jabil Circuit, Inc. JBL$ | 1-Dec-23 |
116.7632 |
115.2052 |
127.24 |
-1% |
9% |
| BLDR | $Builders FirstSource, Inc. BLDR$ | 1-Dec-23 |
139.28 |
136.86 |
166.94 |
-2% |
20% |
| HUBB | $Hubbell Incorporated Class B HUBB$ | 13-Oct-23 |
291.682 |
300.8246 |
287.7242 |
3% |
-1% |
| LULU | $Lululemon Athletica Inc LULU$ | 13-Oct-23 |
377.69 |
416.64 |
416.98 |
10% |
10% |
| Average performance (%) | 3% |
7% |
Here are some of the companies related to the S&P500 inclusion.
| Ticker | Company Name | Last Closing (USD) | Current Market Cap (USD 'bn) | 1-month Total Return (%) | 3-month Total Return (%) |
| GDDY | $GoDaddy, Inc. Class A GDDY$ | 142.04 |
20.02 |
6.06 |
25.18 |
| CRWD | $CrowdStrike Holdings CRWD$ | 374.57 |
91.16 |
16.78 |
16.02 |
| KKR | $KKR & Co. L.P. KKR$ | 108.95 |
96.68 |
5.64 |
10.63 |
| VST | $Vistra Energy Corp. VST$ | 88.22 |
30.65 |
-5.57 |
46.33 |
| SMCI | $Super Micro Computer, Inc. SMCI$ | 786.86 |
46.08 |
-1.46 |
-30.98 |
| UBER | $Uber Technologies,Inc. UBER$ | 68.6 |
143.34 |
2.4 |
-12.83 |
| DECK | $Deckers Outdoor Corporation DECK$ | 1054.95 |
26.84 |
22.39 |
15.65 |
Trade the new entrants that has announced for S&P500 via M+ App!
More about Loui:
Loui Low leads a team of analysts to perform equity and economic research and to provide investment advisory services to the organization's sales team, fund manager and retail fraternity. He has more than 10 years of experience in the stockbroking industry.
He graduated with a Bachelor of Science in Statistics from University of Malaya. He also holds an STA Diploma and is a member of the Society of Technical Analysts (MSTA) United Kingdom.
More about the Trade Radar:
Trade Radar is a weekly-updated section, featuring Loui's latest insights into market trends and hot topics. Traders may find some trading inspiration from Loui's views.
More insights from Loui can view on the "Trade Radar & Alpha Alert" topic: https://mplusgbl.com.my/j523 ššš
Disclaimer:
The content is provided as general information only and should not be taken as investment advice. All the contents shall not be taken as a recommendation to buy or sell any security or financial instruments. Any action you take resulting from information, analysis, or commentary on this article is your responsibility. Please consult your investment advisor before making any investments.
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