Strengths
1. Visibility & Credibility
Being in the S&P 500 is a signal that a company has achieved a level of size, profitability, and stability. That tends to reduce perceived risk, attract institutional interest, and possibly improve terms in funding or partnerships. 
2. Greater liquidity and investor base
More mutual funds, ETFs, pension funds etc. will hold the stocks; trading volumes and liquidity typically improve, which is positive for investors. 
3. Potential re-rating upwards
Because S&P inclusion can reduce the cost of capital, the stock could command a higher multiple (P/E etc.), if earnings are stable. Also, markets often “price in” the inclusion with some premium. 
4. Short-term momentum
The announcement often leads to short-term gains as index trackers buy, and some speculators enter. If you’re a trader, there might be profit in riding that wave.
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