Inclusion in this prestigious index is not just a mark of recognition, but a catalyst for increased investors attention and trading volume. This surge in attention is typically attributed to institutional investors, mutual funds and ETFs that will be forced to add them to their portfolios. Among the standout additions are Crowdstrike (NASDAQ:CRWD), KKR (NYSE:KKR) and GoDaddy (NYSE:GDDY). For investors seeking outsized returns, these newly included companies represent promising opportunities across dynamic sectors.
Now, let’s unpack the top three stocks set to surge on their S&P 500 inclusion in June 2024!
Crowdstrike (CRWD)
Crowdstrike, a leading cybersecurity company, has solidified its position as a critical player protecting businesses from digital threats. The 2024 fiscal year was pivotal after it reported its first full year of GAAP profitability as a public company.
Crowdstrike’s Falcon platform, leveraging artificial intelligence and machine learning, provides a holistic security solution for its customers. Its cloud-native, full-stack architecture covers data, security and IT all in one platform. This technological edge has not only attracted a broad customer base but has boosted its appeal in the industry. In Q1 FY25, revenue increased 33% year-over-year (YOY) to $921 million. Net earnings swelled an astonishing 8,621% YOY to $42.8 million. It also generated $322.5 million in free cash flow from operations. The company started off the year with positive momentum, despite ongoing headwinds in the cybersecurity sector. Furthermore, Crowdstrike recently announced a collaboration with Nvidia (NASDAQ:NVDA) to deliver Nvidia’s AI computing services through its XDR platform. This makes CRWD stock one of the best stocks to buy on its S&P 500 inclusion in June.
KKR (KKR)
KKR, a global investment firm, is another significant addition to the S&P 500. The firm’s extensive experience and strategic approach to investing have made it a formidable player in the financial sector.
KKR’s recent performance has been extremely impressive. The company reported robust revenue growth in the 2023 fiscal year, and improving financial conditions in the economy support growth to continue. As of Q1 FY24, KKR’s assets under management (AUM) stood at a staggering $578 billion, reflecting a YOY increase of 13%. Revenue during the quarter skyrocketed 229% YOY to $10.62 billion, with EPS more than doubling to 74 cents per share. This growth has been driven by strategic acquisitions, successful investment exits and a strong pipeline of new opportunities. The inclusion of KKR in the S&P 500 is likely to result in substantial inflows from index funds and institutional investors. Moreover, KKR’s track record of delivering strong returns makes it a prime candidate for investors seeking lucrative stocks to buy in 2024.
GoDaddy (GDDY)
GoDaddy is one of the world’s top providers of domain registration and web hosting services. The company’s suite of services include website building, hosting, security and email marketing solutions.
GoDaddy has become synonymous with empowering small businesses and entrepreneurs to establish their online presence. In the 2023 fiscal year, the company saw a significant boost in profitability driven by management’s execution of strategic priorities. It remains committed to being a one-stop shop for entrepreneurs and small business owners to achieve their long term goals. GoDaddy’s diverse platform offerings and investments in artificial intelligence have resulted in increased profitability, strong margin expansion and free cash flow. The inclusion of GoDaddy in the S&P 500 will be a significant milestone for the company. Additionally, it will enhance its visibility and attract investment from a wider audience. For those scouting for promising stocks to buy, GoDaddy is certainly a good place to start.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.