Caesars, Penn National Miss Out on Nasdaq-100 Promotion

Caesars Entertainment (NASDAQ:CZR) is among the well-known gaming equities that didn’t wee the rationalise to go into the widely observed Nasdaq-100 Index (NDX).

The Nasdaq-100, which is rest home to the 100 largets non-financial stocks trading on that exchange, underwent its annual reconstitution on Friday, adding sextuplet stocks piece removing another six. Those alterations testament go into force on Friday, Dec. 17.

The additions include Airbnb (NASDAQ:ABNB) and galvanising vehicle maker Lucid Group (NASDAQ:LCID) as fountainhead as iv technology stocks.

As of Dec. 10, the Nasdaq-100 allocates 17 percent of its weighting to the consumer discretionary sector — the mathematical group in which gaming equities reside. However, the index number had no gaming exposure prior to the annual rebalance, and that remains the case.

Of the hexad companies existence removed from the benchmark, only when Fox Corp. (NASDAQ:FOXA) has a gaming footprint. The media hulk owns the FOX Bet firebrand and has rights to gain 18.6 percent of FanDuel.

Maybe Next Year for Caesars, Penn

Several gaming equities are members of the NASDAQ Next Generation 100 Index — the grooming strand for the Nasdaq-100.

That aggroup includes Caesars and Penn National Gaming (NASDAQ:PENN). Earlier this year, both gambling casino operators got the nod to join to the S&P 500, stoking speculation that a Nasdaq-100 promotional material could follow inward offing. Caesars carry attempted to hold upwardly its cease of the bargain, as it’s upward nearly 20 percent year-to-date, bringing its market value $19.78 billion.

Penn, however, slumped 43.31, and is now the smallest consumer discretionary factor in the NASDAQ Next Generation 100 Index.

Joining the Nasdaq-100 could hold been a possible advance for shares of Caesars and Penn, because fighting(a) fund managers and index finger funds that bench mark to that standard of measurement are forced to purchase fresh added stocks. On a worldwide basis, dozens of dynamic and passive pecuniary resource representing hundreds of billions of dollars inwards assets below management rails the index. In the US alone, eighter from Decatur change traded funds fall out the Nasdaq-100.

DraftKings, Wynn Miss Out, Too

Caesars and William Penn National aren’t the only when gaming stocks that missed come out on the run to the Nasdaq-100. DraftKings (NASDAQ:DKNG) and Wynn Resorts (NASDAQ:WYNN) – formerly a member of the gauge – also didn’t get favorable reception to fall in the index.

Those 2 stocks combine for virtually 1.4 percent of the aforementioned NASDAQ Next Generation 100 Index.

While the Nasdaq is the itemization venue for an potpourri of other gaming equities beyond the quaternity mentioned here, those names aren’t yet big plenty for consideration for the next multiplication index. That indicates they’re a long way of life from comely viable contenders for Nasdaq-100 inclusion.