Published on: November 7, 2025, 01:32h.
Updated on: November 7, 2025, 01:32h.
- Casino equity set to join the popular small-cap index.
- Promotion linked to another gaming entity.
Red Rock Resorts (NASDAQ: RRR) saw its shares surge on Friday following the announcement that the casino company will soon be included in the S&P SmallCap 600 Index.
Notably, this movement is connected to another gaming stock, Light & Wonder (NASDAQ: LNW), which is leaving the NASDAQ next week to list solely in Sydney, thus creating a vacancy in the S&P MidCap 400 Index.
Sterling Infrastructure (NASDAQ: STRL) is set to replace Light & Wonder in the S&P MidCap 400, whereas Red Rock Resorts Inc. will fill Sterling Infrastructure’s spot in the S&P SmallCap 600 starting prior to the market open on Thursday, November 13. Light & Wonder is anticipated to exit the NASDAQ Stock Exchange around this time and plans to maintain its primary listing exclusively in Australia,” stated a release from S&P Dow Jones Indices.
With a remarkable market capitalization of $5.61 billion, placing Red Rock in mid-cap territory, this inclusion could be short-lived if the stock gets promoted to mid-cap indexes. However, no further comments were made regarding this by the index provider. Red Rock is already part of the Russell 2000 Index, its chief competitor to the S&P index.
Significance of Red Rock Resorts Stock Inclusion
The addition of Red Rock to the S&P SmallCap 600 Index is advantageous as it increases the number of investors engaging with the stock.
At present, only 54 exchange-traded funds (ETFs) hold the shares of this casino operator. This number is expected to rise as ETFs that track the S&P SmallCap 600 Index will be mandated to acquire Red Rock stock. Other index funds and active managers tracking this index will also need to add Red Rock shares.
This does not take into account the range of active and passive funds targeting the growth and value segments of the S&P SmallCap 600 that might include Red Rock. The classification of the stock into growth or value will depend on the index segment, as some small-cap indexes currently categorize it as a growth stock, while others consider it as a value stock.
Among small-cap indexes, the S&P index is extensively monitored. The three largest ETFs tracking this index collectively manage over $102 billion in assets.
Red Rock Stock: A Favorite Among Wall Street Analysts
Despite a downturn in shares for Las Vegas Strip operators, Red Rock has shown resilience, particularly due to its focus on the local Las Vegas market. The company’s shares have appreciated by 24% year-to-date, significantly outpacing broader gaming and small-cap stock indices.
Red Rock stock is highly regarded by Wall Street, with 10 out of the 13 analysts covering it rating it as a “strong buy” or “buy.” The consensus price target stands at $65.85, suggesting a potential upside of nearly 15% from current trading levels.