Lumentum Soars After S&P Rebalance Ahead of Vertiv, EchoStar, and Coherent

Friday’s S&P 500 rebalancing made it official. Lumentum (LITE), Coherent (COHR), EchoStar (SATS), and Vertiv (VRT) were all added to the index, and today — Monday, March 9, 2026 — is their first full trading day as official S&P 500 members. The index itself is under pressure, with S&P 500 down .53% as of 11:30 a.m. ET. However, several stocks that were added on Friday are seeing strong returns today.

Let’s dive into how each of the new S&P 500 additions are trading today.

Lumentum is the standout mover today. Shares are up 10.4%, trading around $611 as of this morning’s session, with an intraday high of $628.70. This is the classic index inclusion bump — passive funds and index-tracking ETFs are required to own every S&P 500 component, which forces buying on the first day of inclusion.

But the inclusion itself isn’t arbitrary. Lumentum makes optical and photonic components that sit at the heart of AI infrastructure, and the business has been on a tear. Q2 FY26 revenue came in at $665.5M, up 65.5% year over year, with non-GAAP EPS of $1.67 beating estimates by roughly 18%. Forward guidance points to Q3 revenue of $780M-$830M, implying 85%+ year-over-year growth. One reason Lumentum shares could be jumping more today is that its inclusion was a surprise. Prediction markets had high odds that Vertiv would join the index, but Lumentum was seen as more of a dark horse.

Could more upside be ahead? The consensus analyst target price sits at $655.55, with 14 Buy ratings and 4 Strong Buys against just 4 Holds and zero Sells.That’s only slightly above where Lumentum shares sit today, but the company is also becoming one of the biggest ‘story stocks’ in the AI trade.

Vertiv, the data center power and cooling infrastructure company, is up 7.5% to around $259 this morning, touching an intraday high of $262.01. Like Lumentum, Vertiv is riding the AI infrastructure wave — it makes the power distribution and thermal management systems that keep hyperscale data centers running.

The fundamental case is hard to ignore. Q4 FY25 organic orders were up 252% year over year, and the backlog sits at $15.0B, up 109% year over year. Full-year 2026 guidance calls for net sales of $13.25B-$13.75B and adjusted EPS of $5.97-$6.07, representing 42%-45% growth versus 2025. With a market cap now approaching $92.5 billion, Vertiv is no longer a mid-cap story. It belongs in the big index.

As I noted earlier, Vertiv was the most favored stock for inclusion, but that hasn’t stopped shares from gaining today. It’s worth noting that across the broader AI space, many stocks with strong gains across the past year are rebounding today despite the S&P 500 sell-off. Close peer Modine Manufacturing is also up more than 2% on the day.

Coherent is up a more modest 2.6%, trading near $241. The optical transceiver and laser company had a strong Q2 FY26 of its own, with revenue of $1.686B up 17.5% year over year and its Datacenter and Communications segment growing 34% to $1.208B, representing about 72% of total revenue.

The muted move relative to Lumentum likely reflects the fact that Coherent is a larger, more widely held name — the forced buying from index inclusion has less relative impact when institutional ownership is already broad.

EchoStar is the quietest of the four today, up 1.4% to around $107.86. The Englewood, Colorado-based company provides broadband satellite technologies and internet services and is the most unusual addition of the group — it carries a negative trailing EPS and has seen quarterly revenue slip modestly year over year. The analyst consensus target of $129.17 does suggest upside from current levels, and the stock has surged roughly 284% over the past year, which likely drove the eligibility for inclusion. But today’s tepid move reflects investor uncertainty about the fundamental story relative to the AI-driven names joining alongside it.

The index inclusion buying pressure tends to be front-loaded — most of it happens at or near the close on the effective date, with some spillover into the first full trading day. Watch whether Lumentum and Vertiv can hold their gains into this afternoon’s close. If today’s moves stick, it signals genuine demand beyond mechanical index rebalancing. If they fade, it’s the classic “buy the rumor, sell the news” dynamic playing out in real time.