Once a quarter, usually in the first week of a quarter’s third month, S&P Dow Jones Indices announces changes in many of its U.S. indexes.
The changes are made to make the indexes reflect better the relative market capitalizations of the components of key indexes, the Standard & Poor’s 500 Index, the S&P 100 Index, the Midcap 400 Index and the Small Cap 600 Index.
To qualify for S&P 500 500 membership requires a company now maintain a minimum market capitalization of $20.5 billion.
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Other requirements include:
- A new member must be a U.S. domiciled company.
- Must be listed on an eligible exchange.
- Must be profitable.
- Must not be in a bankruptcy proceeding.
Managements like having their companies in the S&P 500. It’s prestigious, good for recruiting talent, like being a Fortune 500 company or a member of the Dow Jones Industrial Average.
If your company’s market cap is falling, the odds are S&P Dow Jones will move your stock into a different, more appropriate index. And how this happens is known as a fairly mechanical process.
Who’s going into the S&P 500
After Friday’s close, S&P Dow Jones, which manages the indexes (and the Dow Jones Industrial Average), announced changes in the S&P 500. These take effect before the market open on Monday March 24.
Going into the S&P 500 Index are:
- DoorDash (DASH) , the online delivery service. Market cap: $74.8 billion. 2024 stock price chg.: 69.3%. 2025 chg. YTD: 6.2%.
- TKO Group Holdings (TKO), the parent of World Wrestling Entertainment. Market cap: $25.2 billion. 2024 stock-price chg.: 74.2%. 2025 chg. YTD: 4.0%.
- Williams-Sonoma (WSM) ., the kitchenware-and-home furnishings retailer. Market cap: $23.2 billion. 2024 stock-price chg.: 83.5%. 2025 chg. YTD: 1.7%.
- Expand Energy (EXE), the nation’s largest natural gas producer. Market cap: 22.3 billion. 2024 stock-price chg.: 29.4%. 2025 chg. YTD: -3.5%.
Leaving the index are:
- BorgWarner (BWA) , the big auto parts manufacturer. 2024 stock-price chg.: -11.3%. 2025 chg. YTD: -6%.
- Medical-device maker Teleflex (TFX) . 2024 stock-price chg.: -28.6%. 2025 chg. YTD: -21.4%.
- Chemical-and-technology company Celanese (CE) . 2024 stock-price chg.: -55.3%. 2025 chg. YTD: -20.1%.
- Chemical-and-fertilizer maker FMC Corp, (FMC) . 2024 stock-price chg.: -22.9%. 2025 chg. YTD: -15.1%.
All of these departing shares have market capitalizations of $6 billion or less. So, they were vulnerable to being moved down. That said, it is also true that, as of March 7, where were 137 stocks in the S&P 500 market caps of less than $20.5 billion.
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S&P Dow Jones makes other moves
Separately, S&P Dow Jones is moving three stocks into the S&P 100 Index: Palantir Technology (PLTR) , Intuitive Surgical (ISRG) and tech company Service Now (NOW) .
They already are in the S&P 500 and will remain members. They will replace food company Kraft-Heinz (KHC) , chemical giant Dow Inc. DOW and Ford Motor Co. (F) .
The four departees from the S&P 500 will become part of the S&P Small-Cap 600 index.
The newbies in the S&P 500 are coming from the S&P MidCap 400 Index. They will be replaced in that index by VF Corp. (VFC) , Alaska Air Group (ALK) , Him & Hers Health (HIMS) , and Ambec Financial Group (AMBC) .
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