Shares of Unisys Corp. (NYSE: UIS) rose on Wednesday after the IT company was included in a major small-cap stock index. As of 12:15 p.m. EDT, the stock was up about 10.3%.
S&P Dow Jones Indices announced on Tuesday that Unisys will be added to the S&P SmallCap 600 index, effective prior to the opening bell on Sept. 4. The stock will replace Marriott Vacations Worldwide, which is moving into the S&P MidCap 400 index.
Shares of Unisys have more than doubled this year, including Wednesday's surge, pushing the company's market capitalization above $900 million. The inclusion in the small-cap index will require funds that track that index to buy and hold shares, which could further boost the stock (at least in the short run).
This index-related rally comes less than a month after shares of Unisys soared following the company's second-quarter report. Unisys easily beat analyst estimates, although revenue was down adjusting for currency.
Unisys has rewarded investors this year, and it will be more broadly owned now that it's part of the small-cap index. But the company will need to keep beating expectations to keep the rally going.
10 stocks we like better than UnisysWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Unisys wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018