CRH public limited company (CRH.US), Carvana (CVNA.US), and Comfort Systems USA (FIX.US) have been added to the S&P 500 index.

CRH public limited company (CRH.US), Carvana (CVNA.US), and Comfort Systems USA (FIX.US) have been included in the S&P 500 index, and these three companies will join the benchmark index at the quarterly adjustment at the end of December. Meanwhile, LKQ Corp. (LKQ.US), Solstice Advanced Materials (SOLS.US), and Mohawk Industries, Inc. (MOK.US) will be removed and replaced before the opening on December 22. Following the announcement, the stock prices of second-hand car retailer Carvana and building materials company CRH public limited company both rose by around 7% in after-hours trading on Friday. The stock price of heating and ventilation company Comfort Systems USA also rose by about 2%. For Carvana based in Tempe, Arizona, this is a significant milestone. The company's stock price has soared from less than $4 in 2022 to around $400 currently, a 10000% increase. This is due to its efforts to cut costs and restructure debt, improving profitability. The company has reported record car sales of around 156,000 vehicles in the most recent quarter. The rise of passive investment has made inclusivity considerations for companies in the US stock indices increasingly important, as funds tracking these indices are increasing their demand for stocks. According to the relevant criteria, selected companies must have a market capitalization of at least $27 billion and meet requirements in terms of profitability, liquidity, and stock float, in order to qualify for inclusion in the S&P 500 index. Being removed from this benchmark index could have an impact on stock prices, as index funds sell stocks to adjust to the new composition of the S&P 500 index. Analytical forecasts suggest that Carvana, CRH public limited company, and Comfort Systems USA are high-quality candidate companies worth including. Following the announcement on Friday, Carvana contributes to industry diversification and meets the inclusion criteria. The company's stock price has risen nearly 100% year-to-date. Matt Maley, Chief Market Strategist at Miller Tabak + Co., stated that price increases following inclusion announcements are often short-lived. He said, "Demand surges, but once the new stocks are included, this demand quickly fades." However, he added that these announcements are still significant given the popularity of index-tracking funds.