A buyout in the tech sector has eliminated a stock from the S&P 500 index; and so, as per usual, another will rise take its place. S&P Dow Jones Indices, the division of S&P Global (NYSE: SPGI) that manages its parent's indexes, announced that home and in-car electronics maker Harman International Industries will be removed from the S&P 500. Filling that void will be current S&P MidCap 400 constituent Synopsys (NASDAQ: SNPS), a company that provides software solutions for the semiconductor industry.
The switch will take place before trading opens on Thursday.
Advancement to what many consider to be the top benchmark stock index enhances what's already been a good 2017 for Synopsys. Last month, the company released first-quarter results that trounced analysts' estimates for both revenue and net profit.
Late last year, Harman agreed to be acquired by Samsung Electronics in a deal valued at roughly $8 billion. The acquisition was completed on Wednesday, ending its time as an independent, publicly traded company.
Filling Synopsys' spot in the S&P MidCap 400 will be GEO Group (NYSE: GEO), a real estate investment trust that in S&P Global's words "specializ[es] in the ownership, leasing and management of correctional, detention and reentry facilities and the provision of community-based services and youth services." GEO Group is currently a member of the S&P SmallCap 600 index.
Finally, taking GEO Group's place in the S&P SmallCap 600 will be Coca-Cola Bottling, the largest independent Coca-Cola bottler in the U.S.
10 stocks we like better than Synopsys
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Synopsys wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of February 6, 2017
Eric Volkman has no position in any stocks mentioned.