SpaceX Has Officially Joined the Nasdaq-100. Here Are 3 Better Nasdaq-100 Stocks to Buy in July.
These overlooked consumer stocks could offer investors more dependable paths to long-term returns than the newly public megacap.
Overview
On July 7, Space Exploration Technologies (NASDAQ: SPCX) became one of the newest members of the Nasdaq-100, added just 15 trading days after its record-setting public debut under a new fast-entry rule. Roughly $800 billion sits in funds that track that index, so every one of them had to buy the stock, and that mechanical demand has grabbed a lot of headlines.
Here's the thing worth remembering: A stock may meet the criteria to be added to a prominent index, but that doesn't necessarily make it a good buy. Forced buying by passively managed funds can inflate the price of a freshly public, richly valued stock in the short term, but history is full of hyped-up index additions that later proved to be disappointing investments. Rather than chase the rocket, I'd point patient investors toward three quieter Nasdaq-100 members in the consumer world that are doing genuinely interesting things right now.
Details
Keurig Dr Pepper (NASDAQ: KDP) is in the middle of the boldest reinvention of its short life. It closed its roughly $18 billion acquisition of Dutch coffee company JDE Peet's this spring, and it plans to split itself into two focused, separately traded businesses by the end of 2026: a global coffee company and a North American refreshment-beverage company. The logic is that investors often value a focused business more highly than a sprawling one, so separating the two somewhat disparate units could bring value to the surface that's currently buried.
Source
Originally published at www.fool.com.