DoorDash, Williams-Sonoma, TKO, and Expand Energy to Join the S&P 500: Wall Street's Take on These Rising Stars

In a significant move that underscores their growing influence in the market, DoorDash, Williams-Sonoma, TKO Group Holdings, and Expand Energy are set to join the S&P 500 index before the start of trading on Monday, March 24, 2025. This inclusion in one of the most prestigious stock indices is a testament to their market capitalization and investor confidence. But what does Wall Street think about these four companies? Let's dive into the details and explore the market sentiment surrounding these stocks.

DoorDash: A Promising Path to Growth

DoorDash (NASDAQ: DASH) has been making waves with its impressive transition to profitability and strategic partnerships. As of March 2025, the company is viewed as potentially undervalued by Wall Street, with an estimated discount to its fair value of 40.5%. The current stock price stands at $200.56, while the estimated fair value is $333.73. This suggests a significant upside potential for investors.

Key Highlights:

• Profitability and Revenue Growth: DoorDash reported a net income of $123 million in 2024, a remarkable turnaround from a loss in the previous year. The company's revenue reached $10.72 billion, showcasing strong growth.
• Strategic Partnerships: Collaborations with The Home Depot and Ibotta have bolstered DoorDash's revenue growth, outpacing the broader market.
• Analyst Ratings: Despite some mixed outlooks, the consensus rating for DoorDash is "Moderate Buy," with a consensus price target of $206.52. Notably, Citigroup increased its price target from 211 to 240, maintaining a "buy" rating.

Challenges and Opportunities:

While insider selling and large one-off items have posed challenges, DoorDash's future earnings growth potential appears promising. The company's addition to the S&P 500 is likely to increase demand for its shares, as index funds tracking the S&P 500 will need to purchase shares to align with the index's composition.

Williams-Sonoma: A Steady Performer with Institutional Backing

Williams-Sonoma (NYSE: WSM) has demonstrated notable trading activity and stock performance, making it a strong candidate for the S&P 500. As of March 7, 2025, WSM shares traded at $188.83, with a market cap of $23.24 billion.

Key Highlights:

• Stock Performance: Over the past year, the stock reached a high of $219.98, indicating strong investor interest.
• Dividends and Institutional Holdings: The company declared a quarterly dividend of $0.57 per share, yielding 1.21%. Institutional investors and hedge funds collectively own 99.29% of the company's stock, reflecting strong institutional backing.
• Analyst Ratings: The average rating for WSM is "Hold," with a consensus price target of $173.28. Recent target price adjustments have been positive, with Jefferies Financial Group increasing its target from $194.00 to $226.00.

Challenges and Opportunities:

Despite mixed signals from analysts and insider selling activity, Williams-Sonoma's strong institutional backing and consistent dividend payments indicate a steady position in the market. The company's inclusion in the S&P 500 is expected to enhance its visibility and attract more investors.

TKO Group Holdings: A Strong Buy Amidst Market Volatility

TKO Group Holdings (NYSE: TKO) has received an upgrade from Seaport Res Ptn, raising its rating from "hold" to "strong buy." This positive sentiment is echoed by several analysts, with a consensus price target of $157.00.

Key Highlights:

• Earnings Projections: TKO Group's Q1 2025 earnings are projected at $0.44 EPS, with a total FY2025 earnings of $2.20 EPS. For FY2026, earnings are forecasted to reach $3.51 EPS.
• Analyst Sentiment: Eleven analysts rate the stock as "buy," and one as "strong buy," indicating strong confidence in the company's future performance.
• Market Performance: As of the trading day noted, TKO Group's stock was down 2.4%, priced at $143.39, with a 52-week range of $79.32 to $179.09.

Challenges and Opportunities:

Despite recent market volatility, TKO Group's inclusion in the S&P 500 is likely to boost investor confidence and drive demand for its shares. The company's strong buy ratings and positive earnings projections suggest a bright future ahead.

Expand Energy: Positioned for Growth in the Energy Sector

Expand Energy Corporation (NASDAQ: EXE) has received a range of ratings from analysts, reflecting a generally positive outlook. The company's inclusion in the S&P 500 is a testament to its strong market position and growth potential.

Key Highlights:

• Financial Performance: Expand Energy reported a net cash provided by operating activities of $382 million and an adjusted net income of $131 million for the fourth quarter of 2024. The company expects daily production to increase to approximately 7.1 Bcfe/d in 2025.
• Analyst Ratings: The average 12-month price target is $117.47, suggesting a potential increase of 22.33% from the current price of $96.03. The consensus rating among analysts is "Buy."
• Growth Projections: Expand Energy is projected to generate $9.49 billion in revenue for FY 2025, a 122.80% increase from $4.26 billion in FY 2024.

Challenges and Opportunities:

While the company faces challenges in profitability and efficiency metrics, its strong growth potential and favorable analyst sentiment indicate a positive outlook. The inclusion in the S&P 500 is expected to enhance its visibility and attract more investors.

A Bright Future for These S&P 500 Newcomers

The addition of DoorDash, Williams-Sonoma, TKO Group Holdings, and Expand Energy to the S&P 500 is a significant milestone that reflects their strong market positions and growth potential. Each company has its unique strengths and challenges, but the overall sentiment from Wall Street is positive.

For investors, these companies offer exciting opportunities for growth and diversification. As they join the ranks of the S&P 500, increased visibility and demand from index funds are likely to drive their stock prices higher. Whether you're a seasoned investor or just starting, keeping an eye on these rising stars could be a smart move.

In the ever-evolving world of investing, staying informed and making data-driven decisions is key. As these companies continue to grow and adapt, they present compelling opportunities for those looking to capitalize on their potential. So, as March 24 approaches, consider how these S&P 500 newcomers might fit into your investment strategy.