Learn About the Top 5 Companies Included in the S&P 500

The S&P 500 is a stock market index measuring the stocks of the 500 big-cap firms in the U.S. It reflects the success of the stock market by disclosing the most prominent enterprises’ risks and returns.

The S&P 500 has an estimated annual return of 7.99 percent a year as of March 13, 2020. S&P stands for Standard and Poor, the names of the two founding financial companies.

The S&P 500 was formally launched by Standard & Poor on March 4, 1957. In 1966 it was acquired by McGraw-Hill. Here are the Top 5 Companies currently included in the S&P 500. 

 

Learn About the Top 5 Companies Included in the S&P 500
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Microsoft Corporation

Microsoft Corp. is a renowned company that focuses on the development and support of applications, infrastructure, tools, and technologies. This company operates across business processes, intelligent clouds, and personal computing. 

The segment Productivity and Business Processes includes products and services within the company’s communication and information services that span across various devices and platforms.

The Segment of Intelligent Cloud refers to the company’s public, private, and hybrid products and cloud services that can power modern business.

Statistics

Index Weighting: 5.5%

Market Cap ($B): 1,398

Revenue ($B) (4-Quarter Trailing): 138.7

Net Income ($B) (4-Quarter Trailing): 46.3

Apple

Apple, Inc. is involved in designing, manufacturing, and selling smartphones, tablets, computers, wearables, and other accessories. 

This renowned company operates across America, Europe, Greater China, Japan, and Asia Pacific Rest. North and South America are included in the Americas group. It also operates across India, the Middle East, and Africa.

Its products and services include iPhone, iPad, Mac, iPod, Apple Watch, Apple TV, a collection of consumer and technical software apps, iPhone OS (iOS), OS X, and watchOS operating systems. It also designs the iCloud, Apple Pay, and a variety of hardware utilities.

Statistics

Index Weighting: 5.3%

Market Cap ($B): 1,327.9

Revenue ($B) (4-Quarter Trailing): 268.0

Net Income ($B) (4-Quarter Trailing): 57.2

Amazon, Inc.

Amazon is another well-known company that provides a variety of popular products and services.

The company’s goods include items and services that it purchases from distributors and third-party retailers for resale.

It also manufactures and distributes electronic products. Via its subsidiary, Whole Foods Market, Inc., the company sells balanced, organic food and essentials.

Statistics

Index Weighting: 4.0%

Market Cap ($B):1,017.2

Revenue ($B) (4-Quarter Trailing): 296.3

Net Income ($B) (4-Quarter Trailing): 10.6

Facebook

Facebook allows people to use mobile devices and personal computers to connect, share, discover, and interact with each other. Instagram allows people to take photos or videos, customize them with filter effects, and share them in a photo feed with friends and followers.

Facebook Messenger helps individuals and companies to connect through a variety of networks and devices.

WhatsApp Messenger is a messaging application that people around the world use on a range of mobile platforms.

Statistics

Index Weighting: 2.1%

Market Cap ($B): 541.7

Revenue ($B) (4-Quarter Trailing): 73.4

Net Income ($B) (4-Quarter Trailing): 21.0

Berkshire Hathaway

Berkshire Hathaway is an investment firm through which Warren Buffett has made various investments over the years.

It deals with insurance firms such as GEICO, broad energy and transportation businesses, a big railroad, consumer goods such as the ice cream shop Dairy Queen, and producers such as the Precision Castparts Corp.

It also owns a huge equity portfolio, which is why Berkshire Hathaway dropped several places in the rankings.

These shares took a huge hit when stocks dropped in the first quarter, crushing Berkshire’s first-quarter profits.

Statistics

Index Weighting: 1.4%

Market Cap ($B): 363.0

Revenue ($B) (4-Quarter Trailing): 237.2

Net Income ($B) (4-Quarter Trailing): 10.0

Learn About the Top 5 Companies Included in the S&P 500
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Conclusion

A committee selects 500 companies in each index based on their liquidity, scale, and industry.

A business must be in the United States and have an unadjusted market value of at least $8.2 billion to apply for the index. At least 50 percent of the stock must be publicly available. 

Its stock price has to be at least 1 dollar per share. The company is required to file an annual 10-K report. In the United States, at least 50% of its fixed assets and sales will be included.