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Key Points
- Comfort Systems USA, Carvana, and CRH will be added to the S&P 500 Index on Dec. 22.
- Comfort Systems and CRH are benefiting from increased data center demand, while Carvana is gaining significant market share from CarMax.
- Index inclusion could lead to short-term stock price boosts due to increased demand from S&P 500 tracking funds.
The S&P 500 Index is indisputably the most referenced benchmark for tracking the performance of large-cap U.S. stocks. Each quarter, the S&P 500 Index Committee (a committee within S&P Dow Jones Indices) reassesses which stocks will or will not remain in the index. This typically results in a few stocks entering and a few stocks exiting it.
Being added to the S&P 500 has a variety of benefits. It is often seen as a badge of honor for companies, establishing them as among the most valuable and respected firms in the world. It can also help attract attention from investors who otherwise may not have heard about a particular stock.
Additionally, investment funds that track the S&P 500 must accumulate shares in these new stocks to satisfy their mandates. This added buying has the potential to create upward pressure on their stock prices. However, the impact of this is typically short-term and fades over time.
To qualify for inclusion in the S&P 500, a company generally must:
- Have a market capitalization of at least $18 billion
- Be U.S.-based or have a primary U.S. listing with substantial U.S. operations
- Maintain adequate liquidity and public float
- Report positive earnings in recent quarters
- Represent its sector’s performance within the large-cap space
This quarter, three high-performing stocks—Comfort Systems USA (NYSE: FIX), Carvana (NYSE: CVNA), and CRH (NYSE: CRH)—will be added to the S&P 500 on Dec. 22, following a year of exceptional growth across diverse sectors.
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Comfort Systems USA: Stock Soars Over 100% as Tech Demand Lifts Sales
In 2025, Comfort Systems' stock delivered a total return of approximately 123%, pushing its market capitalization to $33 billion.
The company specializes in heating, ventilation, and air conditioning (HVAC) services and has emerged as a key supplier to the fast-growing data center market.
Although its connection to data centers is not obvious at first, these customers have been the main driver of the stock’s 2025 success.
Data centers produce a significant amount of heat, thus requiring strong cooling solutions to run optimally. Data centers employ FIX to build and install critical air conditioning and ventilation systems. The technology end market accounted for 42% of Comfort Systems' total revenue last quarter. This was a big increase compared to 32% of revenue a year ago.
Strong demand from technology customers helped the firm’s total revenue rise by 35%, and its adjusted earnings per share (EPS) rose by over 100%. Overall, Comfort Systems has clearly established itself as a key resource for data centers.
Carvana: Disrupting the Used Car Market, Surpassing CarMax
Carvana, which operates an e-commerce platform for buying and selling used cars, has seen its share price rise by approximately 122% in 2025.
The company has been taking a significant amount of market share from legacy players such as CarMax (NYSE: KMX).
Last quarter, Carvana sold around 156,000 cars to retail customers, compared to around 170,000 at CarMax. One year ago, these numbers sat at 109,000 cars and 184,000 cars, for Carvana and CarMax, respectively. Clearly, the gap between these two companies has narrowed drastically, showing how Carvana’s business model is resonating with customers.
Notably, Carvana also has significantly higher margins. Last quarter, its gross margin was 21%, nearly double CarMax’s 11% figure. Carvana’s adjusted operating margin was 9.8%, nearly 5x higher than CarMax’s 2% figure.
As the tides are changing, Carvana has surged to a market capitalization of over $98 billion. Meanwhile, CarMax is down 53% this year, leaving it with a market capitalization of just $5.5 billion.
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CRH: Capitalizing on Infrastructure and Data Center Construction
Basic materials stock CRH is the final company entering the S&P 500 this quarter. The stock has delivered a total return of 36% in 2025, giving it a market capitalization of over $83 billion.
Importantly, CRH shifted its primary listing to the NYSE in 2023, making it newly eligible for S&P 500 inclusion despite its Irish domicile.
CRH generates the majority of its revenue from North America—67% last quarter—and supplies essential materials like aggregates, cement, concrete, and asphalt. It also provides highly engineered products, serving infrastructure customers across water, energy, transportation, and telecom.
Like Comfort Systems, data center demand is a key part of CRH’s story, and the company currently working on 98 projects. With
$690 billion in additional data center projects announced or under construction, and with CRH locations within 50 miles of each of them, the company is well-positioned to grow its U.S. footprint further.
Index Recognition Reflects Rising Market Influence
The addition of Comfort Systems USA, Carvana, and CRH to the S&P 500 underscores their growing economic significance and market influence. These companies are now recognized as major players in their respective sectors—an important long-term signal.
As these three companies join the index on Dec. 22, three companies will be removed:
- LKQ Corporation (NASDAQ: LKQ): The company's market capitalization and liquidity profile now fall below the threshold needed to represent the large‑cap space of the S&P 500, reflecting slower relative growth.
- Solstice Advanced Materials (NASDAQ: SOLS): Its parent company’s restructuring reduced its standalone market‑cap footprint needed for continued inclusion.
Mohawk Industries (NYSE: MHK): Ongoing revenue pressures, margin compression, and underperformance relative to peers have eroded its market cap below S&P 500 thresholds.
This quarterly rebalancing reflects S&P Dow Jones Indices’ ongoing effort to ensure the benchmark remains representative of the largest and most investable U.S. stocks.
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