The S&P 500 is betting on Penn National Gaming Inc. and Caesar’s Entertainment Inc. amid increasing legalization of sports betting in the U.S.
Penn PENN, -0.38% and Caesar’s CZR, -0.13% were announced as incoming members of the S&P 500 index SPX, +0.10% Friday afternoon, along with semiconductor manufacturer 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 drop down to 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 stock rise nearly 750% in the past year amid further legalization of sports betting and its investment in popular sports website Barstool. Barstool founder Dave Portnoy has talked about the stock often while taking up investing publicly during the COVID-19 pandemic. Penn stock gained more than 7% in after-hours trading following Friday’s announcement.
Caesar’s has also enjoyed strong gains in the past year, after falling in late February and early March of last year as fears of the impending pandemic grew. Caesar’s shares have gained 550% in the past 12 months, and prices rose more than 5% in after-hours trading.
NXP stock has roughly doubled in the past year, amid shortages of semiconductors that have acutely hit automotive manufacturers, a key segment for NXP, and shares rose more than 5% in the extended session. Generac has increased nearly 250% in the past 12 months, and gained about 4% in late trading.
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