Rocket Companies and Affirm Holdings could be among the next companies added to the S & P 500 Index as upcoming index changes create room for new members, according to analysts at Keefe, Bruyette & Woods. The boutique investment bank said discretionary changes tied to the S & P 500’s third-quarter rebalancing will be announced on Sept. 4 and take effect on Sept. 18. Ahead of that, KBW expects nine merger-related changes across the S & P 1500, including one expected vacancy in the S & P 500 that could prompt the index committee to add a new company. The S & P 1500 is comprised of the S & P 500, the S & P Midcap 400 and S & P Smallcap 600 indexes. KBW said Rocket is now the sixth-largest company eligible for inclusion in the S & P 500 and the largest eligible financial stock. KBW, which is part of Stifel Financial, gave Rocket a medium probability of joining the benchmark during the third-quarter rebalancing, and a medium- to high likelihood of being added over the next several quarters. Affirm, a buy now, pay later financial technology company, also has a medium probability of being added to the S & P 500 during the upcoming rebalancing, according to KBW. Inclusion in the benchmark typically boosts demand for shares as index-tracking funds are required to buy newly-added companies. On June 22, Marvell Technology , a chipmaker that makes several different parts and products needed for the artificial intelligence infrastructure boom, joined the S & P 500 . Flex , a contract manufacturer for electronics, was also added to the index then. The two companies replaced Pool Corp and Campbell’s Company . RKT 1Y mountain Rocket shares over the past year
These two stocks could soon be added to the S&P 500, says KBW
