The S&P 500’s next quarterly rebalance is set for June 7th, and Barclays analysts believe the next addition to the benchmark index may be Block Inc., a financial technology firm led by Jack Dorsey.
“SQ reached S&P 500 eligibility following 4Q23 earnings in February 2024 as: (a) Q4 had positive net income of $178M and (b) the sum of net income over the LTM ending 4Q23 was also positive at ~$125M,” Barclays analysts said in a Wednesday note.
The company’s positive net income of $472 million in the first quarter also contributed to that trend, they added.
Although the inclusion on June 7th is not guaranteed, Barclays believes that SQ stock “screens well.”
However, selection isn’t guaranteed as S&P has discretionary criteria, including sector balance.
SQ, classified under “Financial Services” in the GICS Industry, could be chosen to address sector underweighting, analysts…
