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KKR & 2 More Stocks to Join S&P 500 Index Post Rebalancing

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Shares of KKR & Co. Inc. (KKR - Free Report) , CrowdStrike Holdings, Inc. (CRWD - Free Report) and GoDaddy Inc. (GDDY - Free Report) gained 7.7%, 5.4% and 3.7%, respectively, in the after-market trading on Friday after the S&P Dow Jones Indices said that the firms would join the S&P 500 index.

In a press release, S&P Dow Jones Indices said that as part of the quarterly rebalancing, KKR, CRWD and GDDY will replace Robert Half Inc., Comerica and Illumina Inc. in the S&P 500 index prior to the start of trading on Jun 24.

In the last few years, the private investment business witnessed extraordinary growth. The inclusion of KKR in the S&P 500 index highlights growth of the industry.

The company has expanded across strategies from acquisitions and credit to infrastructure, real estate and insurance. Recently, it announced a plan to reach at least $1 trillion in assets under management in five years.

With the addition of KKR to the Index, its share price is expected to rise, further boosting investor confidence in the stock.

Then again, the addition of CrowdStrike and GoDaddy to the S&P 500 index comes at a time when investors are moving toward software companies in order to capture growth of cloud computing and artificial intelligence.

Owing to rising data breaches, CRWD has been benefiting from the soaring demand for cyber-security solutions. Its sustained focus on rolling out new products, acquisitions and partnerships is expected to continue to boost sales.

GDDY has been benefiting from strong momentum across the Applications & Commerce business. Strength in Create & Grow solutions is aiding the Application & Commerce segment's top-line growth. Moreover, growth in bookings, primarily driven by substantial customer additions and price increases in various domains, has been a key catalyst for the company.

Notably, U.S. firms that are highly liquid, with a market capitalization of at least $18 billion, and meet profitability, liquidity and share-float standards are the ones that can qualify for the S&P 500.

The S&P 500 index is rebalanced each quarter. Mostly, additions and removals to the index happen during this time. However, companies can be added or removed from the index at other points of the year like after mergers and acquisitions.

The adjustments to the index are made by the S&P Dow Jones to account for shifts in market capitalizations and, sometimes, to adjust for the market’s rotations.

Currently, KKR and GDDY carry a Zacks Rank #3 (Hold). CRWD has a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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