Please ensure Javascript is enabled for purposes of website accessibility

Why STAAR Surgical and Prestige Consumer Healthcare Stocks Jumped Today

By Prosper Junior Bakiny - Updated Jan 26, 2021 at 1:45PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Both companies are set to join new market indexes.

What happened?

Tuesday is shaping up to be a good day for shareholders of STAAR Surgical (STAA 3.72%), which manufactures implantable lenses, and Prestige Consumer Healthcare (PBH 3.94%), which markets over-the-counter (OTC) healthcare products. As of 1:30 p.m. EST today, STAAR Surgical stock was up by 14.7%, while Prestige Consumer's stock was up by 7.7%. The catalyst was recently announced changes to two market indexes involving both companies.

So what

Starting on Jan. 29, STAAR Surgical will replace Prestige Consumer in the S&P MidCap 400, an index that tracks 400 mid-cap companies in the U.S. equity market. It is one of the most widely followed mid-cap indexes, and eligibility requirements include a certain level of liquidity and financial viability. Meanwhile, on the same day, Prestige Consumer will take the place of Foundation Building Materials (FBM) in the S&P SmallCap 600.

Hand drawing upward-bound graph.

Image source: Getty Images.

While changes to more-famous indexes such as the S&P 500 tend to attract more attention, new additions to smaller ones like the S&P SmallCap 600 and the S&P MidCap 400 can also generate some excitement among investors, and that seems to be what's happening today with STAAR Surgical and Prestige Consumer. 

Now what

For long-term investors, these changes mean little in the grand scheme of things, and so does the boost that STAAR Surgical and Prestige Consumer are experiencing as a result. The important thing to focus on is the prospects of both these healthcare companies

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

STAAR Surgical Company Stock Quote
STAAR Surgical Company
STAA
$74.78 (3.72%) $2.68
Prestige Brands Holdings, Inc. Stock Quote
Prestige Brands Holdings, Inc.
PBH
$58.90 (3.94%) $2.23
Foundation Building Materials, Inc. Stock Quote
Foundation Building Materials, Inc.
FBM

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
321%
 
S&P 500 Returns
111%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.