S&P 500 bets on Penn National Gaming Inc. and Caesar’s Entertainment Inc. against the background of the growing legalization of sports betting in the USA
Penn PENN,
and Caesar’s CZR,
were announced as receiving members of the S&P 500 SPX index,
Friday afternoon, along with semiconductor manufacturer NXP Semiconductors NV NXPI and Generac Holdings Inc. GNRC, which sells equipment used to generate energy. Flowserve Corp. FLS, SL Green Realty Corp. SLG, Xerox Holdings Corp. XRX and Vontier Corp VNT will descend to the S&P MidCap 400 to make room. The changes are scheduled to take place before trading begins on March 22.
Penn has seen a nearly 750% increase in shares over the past year amid further legalization of sports betting and its investment in the popular sports website Barstool. Penn uses the Barstool brand on its sports gaming platform, which competes with Flutter Entertainment PLC FLTR,
DraftKings DKNG,
William Hill WMH,
Caesar’s and others like American states legalize sports gambling. Michigan became the 15th state to allow online sports gambling earlier this year.
Barstool founder Dave Portnoy often talked about stocks as he began investing publicly during the COVID-19 pandemic. Penn shares closed at a record high of $ 130.47 on Friday, then gained about 7% in trading hours after the announcement.
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Caesar’s is in the process of teaming up with William Hill to create a bigger rival for online sports betting in the US, and the stock has enjoyed strong gains over the past year, after falling in late February and early March last year. , as fears of an imminent pandemic grew. Caesar’s shares have gained 550% in the last 12 months, and prices have risen by more than 5% when trading after the program.
NXP shares have doubled in the last year, amid a shortage of semiconductors that have severely affected carmakers, a key segment for NXP, and shares have risen more than 5% in the extended session. Generac has grown by almost 250% in the last 12 months and gained about 4% in late trading.
For more information: the global shortage of chips is expected to last until next year and this is good news for semiconductor stocks
Xerox shares fought despite investor Carl Icahn agitating for changes to the printing giant, while holding more than 15% of the shares. Stocks fell after a hostile takeover attempt by HP Inc. HPQ,
it failed early last year and 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 Friday. Shares of SL Green and Vontier also fell less than 2% in trading after Friday, while Flowserve was steady.