And the hottest stock in the world joined the S&P 100.
As part of quarterly rebalancing, the S&P 500 added four new stocks to the index to ensure it includes the 500 largest stocks on U.S. markets.
The four new additions reflect, for the most part, stocks that have been growing this year, while the S&P 500 overall is down about 2% year-to-date.
New additions include DoorDash (NASDAQ:DASH), the restaurant delivery service; TKO Group Holdings (NYSE:TKO), the company that owns WWE and UFC (Ultimate Fighting Championship); Williams-Sonoma (NYSE:WSM), the specialty retailer; and Expand Energy (NASDAQ:EXE), a natural gas producer.
Three of the four stocks are up this year, led by DoorDash, which has gained 19% and is trading at around $200 per share. DoorDash stock is up 45% over the past 12 months. It has a median price target of $226 per share, indicating 12.5% upside over the next year.
TKO Group stock has jumped 8% YTD and 79% over the past 12 months, trading at around $154 per share. TKO has a price target of $170 per share, suggesting an 11% increase.
Expand Energy stock has risen 10% YTD and 26% over the past 12 months, trading at $109 per share. Analysts have a median price target of $123.50 on the stock, which would be a 13% gain over the next year.
Finally, Williams-Sonoma stock is down 8% YTD, but it has gained about 9% over the past year. It is trading at $170 per share and has a $180 per share median price target, which represents about 7% growth. Williams-Sonoma also just boosted its dividend to 66 cents per share, from 57 cents per share, marking the 19th year in a row of dividend raises.
Who’s out?
With four new entrants, that means four stocks must exit the S&P 500. Those that have been bounced include BorgWarner (NYSE:BWA), an auto parts supplier specializing in EV parts; Teleflex (NYSE:TFX), a medical device company; Celanese (NYSE:CE), a specialty materials company; and FMC Corp. (NYSE:FMC), a chemical manufacturing firm.
All of the stocks are down year-to-date, ranging from BorgWarner, down 7%, to Teleflex, off 20%. That doesn’t mean they aren’t good buys; in fact, BorgWarner is dirt cheap and has high upside, with a median price target of $38, which suggests a 30% increase.
There were also some changes within the S&P 100, which is the 100 largest stocks. Most notably, Palantir (NASDAQ:PLTR) cracked the S&P 100 after just being added to the S&P 500 in October. Palantir has had meteoric growth, as the top stock on the S&P 500 in 2024, rising about 341% last year. This year Palantir stock is up another 26% and is among the best performing AI stocks.
Other new entrants on the S&P 100 include Intuitive Surgical (NASDAQ:ISRG) and ServiceNow (NYSE:NOW).
The three stocks that dropped out of the S&P 100 index are chemical company Dow (NYSE:DOW), food company Kraft-Heinz (NYSE:KHZ), and automaker Ford (NYSE:F).
