The S&P 500 is betting on Penn National Gaming Inc. and Caesar’s Entertainment Inc. amid the growing legalization of sports betting in the US.
and CZR for Caesar,
were announced as incoming members of the S&P 500 SPX Index,
On Friday afternoon, together with semiconductor maker NXP Semiconductors NV NXPI and Generac Holdings Inc. GNRC, which sells equipment used to generate power. Flowserve Corp. FLS, SL Green Realty Corp. SLG, Xerox Holdings Corp. XRX and Vontier Corp VNT will lower the S&P MidCap 400 to make room. The changes are scheduled to take place before the start of trading on March 22.
Penn has seen its shares rise nearly 750% last year amid further legalization of sports betting and its investment in popular sports website Barstool. Penn is using the Barstool brand in its sports betting platform, which competes with Flutter Entertainment PLC FLTR,
William Hill WMH,
Caesar’s and others like US states legalize sports gambling. Michigan became the 15th state to allow online sports gambling earlier this year.
Barstool founder Dave Portnoy has spoken often about stocks while making public investments during the COVID-19 pandemic. Penn shares closed at an all-time high of $ 130.47 on Friday and then gained about 7% in after-market trading after the announcement.
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Caesar’s is in the process of combining with William Hill to create a larger rival for online sports betting in the US, and the stock has enjoyed strong gains in the last year, after falling in late February and early February. March last year due to fears of the impending pandemic grew. Caesar’s stock has gained 550% in the last 12 months and prices are up more than 5% in after-hours trading.
Shares of NXP have roughly doubled in the past year amid a semiconductor shortage that has hit automakers, a key segment for NXP, badly, and shares were up more than 5% in the extended session. Generac has risen almost 250% in the last 12 months and has gained about 4% on late operations.
For more: The global chip shortage is expected to last into next year, and that’s good news for semiconductor stocks.
Xerox shares have struggled despite investor Carl Icahn calling for a change in the printing giant while owning more than 15% of the shares. Shares tumbled after a hostile takeover attempt by HP Inc.HPQ,
It flopped early last year and has gained 12.6% in the last 12 months as the S&P 500 added 58.8%. Xerox shares fell less than 2% in the stock after hours on Friday. Shares in SL Green and Vontier also fell less than 2% in after-hours trading on Friday, while Flowserve was flat.