In this article, we list the 5 New Contenders for S&P 500 Index. Please visit 10 New Contenders for S&P 500 Index if you would like to see the extended list and the methodology behind it.

5. Toast, Inc. (NYSE:TOST)

Number of Hedge Fund Holders: 68

Toast, Inc. (NYSE:TOST) is one of the 10 new contenders for S&P 500 Index.

On April 21, 2026, Toast, Inc. (NYSE:TOST) announced entering a partnership with Alicart Restaurant Group to power some of the nation’s highest-volume dining destinations, including Carmine’s and Virgil’s Real BBQ. Alicart has been facing extreme scale and needed a platform that could handle it. Accordingly, leveraging the partnership, Alicart uses 20 Toast terminals, including Toast Go® handhelds, in its restaurants to maintain the exceptional speed and hospitality. Kelly Esten, Chief Marketing Officer and Chief Operating Officer of Enterprise, Toast, Inc. (NYSE:TOST), stated:

We are thrilled to provide the human-boosting tech and AI-powered tools they need to stay fast, precise, and focused on the thousands of guests that fill their dining rooms every day.

In a separate event, BMO Capital initiated coverage of Toast, Inc. (NYSE:TOST) with an Outperform rating. The firm has set a target price of $35 on the stock. Toast, Inc. (NYSE:TOST) has long-term potential, supported by distinct and emerging growth drivers, according to the firm’s analyst.

Founded in 2011, Toast, Inc. (NYSE:TOST) is a cloud-based restaurant management software company. Based in Massachusetts, the company offers an all-in-one point of sale (POS) and digital technology platform specifically designed for the hospitality industry.

4. Cheniere Energy, Inc. (NYSE:LNG)

Number of Hedge Fund Holders: 81

Cheniere Energy, Inc. (NYSE:LNG) is one of the 10 new contenders for S&P 500 Index.

On April 16, 2026, Scotiabank raised its price target on Cheniere Energy, Inc. (NYSE:LNG) from $285 to $288. The firm’s analyst kept an Outperform rating on the stock, expressing confidence in one of the candidates for the S&P 500 Index. Scotiabank told investors it is adjusting its price targets for U.S. Midstream stocks it covers. According to the firm, the current global market environment is favorable in the short term but has neutral impacts in the long term.

Prior to this, JPMorgan made a separate revision to its price target on Cheniere Energy, Inc. (NYSE:LNG), lowering it from $338 to $325 while maintaining an Overweight rating on the company’s stock. The firm anticipates the company to report strong Q1 operational results. Widening spreads are expected to have a positive influence on the full-year performance, resulting in figures above the financial guidance that has been previously announced by the company.

Founded in 1996, Cheniere Energy, Inc. (NYSE:LNG) is one of the largest producers of liquefied natural gas in the U.S. Based in Texas, the company operates two of the world’s largest liquefaction platforms, Sabine Pass and Corpus Christi.

3. Reddit, Inc. (NYSE:RDDT)

Number of Hedge Fund Holders: 82

Reddit, Inc. (NYSE:RDDT) is one of the 10 new contenders for S&P 500 Index.

On April 21, 2026, DA Davidson initiated coverage of Reddit, Inc. (NYSE:RDDT) with a Buy rating and a $200 price target. The firm cited a belief that the company remains incredibly under-monetized relative to peers. DA Davidson estimates that the “human-first social platform” Reddit, Inc. (NYSE:RDDT) will attract more users and advertisers as it scales. And with this growth, the company is expected to secure favorable LLM contract renewals and an increase in operating leverage, which will strengthen its position in the digital advertising market. Notably, in an article published earlier this year, CNBC noted that the odds of Reddit, Inc. (NYSE:RDDT) entering the S&P 500 index are high, as communication services and financials remain underweight in the index.

Meanwhile, the company saw a significant cut in its price target from Citizens on April 21, 2026. The firm lowered Reddit, Inc. (NYSE:RDDT)’s target price from $300 to $250 while keeping an Outperform rating on the stock. With a consensus Buy rating from 33 analysts, the company holds a 61.81% 1-year average upside, as of April 24, 2026, according to CNN.

Reddit, Inc. (NYSE:RDDT), founded in 2005, is a social news aggregation and discussion platform powered by a network of communities called subreddits. The company operates globally with headquarters in California.

2. Ferguson Enterprises Inc. (NYSE:FERG)

Number of Hedge Fund Holders: 84

Ferguson Enterprises Inc. (NYSE:FERG) is one of the 10 new contenders for S&P 500 Index.

Wells Fargo lowered its price target on Ferguson Enterprises Inc. (NYSE:FERG) from $285 to $260 on April 8, 2026.  The firm maintained an Overweight rating on the stock. Wells Fargo noted that housing stocks have underperformed the S&P 500 by 12 points since the Iran conflict began. According to the analyst, the sector remains risky ahead of Q1 earnings, driving the firm to maintain a selective approach toward companies reporting this quarter.

In another development, on March 30, 2026, Morgan Stanley raised its price target on Ferguson Enterprises Inc. (NYSE:FERG) from 20,100 GBp to 21,100 GBp. The firm reiterated an Overweight rating on the company’s stock. With its investors awaiting the first-quarter results and the company’s conference call on Tuesday, May 5, 2026, Ferguson Enterprises Inc. (NYSE:FERG) maintains a consensus Buy rating from 25 analysts covering the stock as of April 24, 2026. The stock is expected to grow by an average of 6.31% over the next 12 months.

Founded in 1953, Ferguson Enterprises Inc. (NYSE:FERG) is the largest North American distributor of plumbing and HVAC supplies. Headquartered in Virginia, the company serves more than 30,000 suppliers and over one million customers in the residential, commercial, and infrastructure sectors.

1. Marvell Technology, Inc. (NASDAQ:MRVL)

Number of Hedge Fund Holders: 85

Marvell Technology, Inc. (NASDAQ:MRVL) is one of the 10 new contenders for S&P 500 Index.

On April 13, 2026, B. Riley expressed confidence in Marvell Technology, Inc. (NASDAQ:MRVL)’s future growth value by raising the stock’s price target from $135 to $156. The firm’s analyst maintained a Buy rating on the stock. According to the analyst, Taiwan Semiconductor Manufacturing Company’s (TSM) strong Q1 sales and Q2 outlook signal notable growth across the broader semiconductor and technology supply chains and offer lateral benefits for Marvell Technology, Inc. (NASDAQ:MRVL).

In a more recent development, on April 22, 2026, Marvell Technology, Inc. (NASDAQ:MRVL) announced the acquisition of Polariton Technologies, a specialist in high-speed, low-power plasmonics-based silicon photonics. With this move, the company aims to scale optical performance to 3.2T and beyond, thereby addressing the exponential bandwidth demands of AI workloads. The financial terms of the acquisition remain undisclosed. As per the announcement, however, the takeover adds a specialized engineering team to Marvell Technology, Inc. (NASDAQ:MRVL), reinforcing its commitment to innovation in high-speed connectivity for evolving cloud infrastructures.

Founded in 1995, Marvell Technology, Inc. (NASDAQ:MRVL) is a leader in data infrastructure semiconductor solutions. The California-based company designs and develops high-performance chips that move, store, process, and secure the world’s data.

READ NEXT: MLP Stocks List: 20 Largest MLPs and 10 High Growth Chemical Stocks to Buy

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.