The Newest Stock in the S&P 500 Is Obliterating Nvidia and Palantir This Year. Is It Too Late to Buy?

The S&P 500 (SNPINDEX: ^GSPC) is made up of 500 companies from 11 different sectors of the economy. To be considered for a spot in the index, there are multiple criteria, including that companies must have a market capitalization of at least $22.7 billion and must be profitable. But even after ticking those boxes, a special committee ultimately decides which candidates make the cut.The S&P 500 is rebalanced once per quarter, meaning stocks that no longer meet the criteria are removed in favor of more suitable names. The most recent rebalance occurred on Sept. 22, when casino operator Caesars Entertainment was replaced by Robinhood Markets (NASDAQ: HOOD), which operates a popular online investing platform. Robinhood stock is trading up 208% so far this year, crushing the comparable performances of artificial intelligence (AI) powerhouses Nvidia and Palantir Technologies, which have returned 28% and 136%, respectively. That's a ton of gains already for Robinhood. Does it mean it's too late for investors to board this train? Read on.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool