Why Waystar Stock Blasted Nearly 10% Higher on Monday

Key Points

• The medical tech company is about to join the S&P SmallCap 600 index.

• While this doesn’t change the fundamental investing thesis for the stock, it does make it a target of the many index funds on the scene.

• 10 stocks we like better than Waystar ›

For stock investors, one way to prosperity on Monday was by having a position in medical tech company Waystar (NASDAQ: WAY). After all, it was an outlier in the best way possible, since it shares zoomed almost 10% skyward on news that it’ll be a component in a popular stock index.

That gain was particularly impressive, as the benchmark S&P 500 (SNPINDEX: ^GSPC) bumped only 0.2% higher.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

That’s one way to gain more prominence

That index is the S&P SmallCap 600, and Waystar will become one of the 600 selected for inclusion when a series of changes takes effect prior to market open on Monday, Sept. 22.

Image source: Getty Images.

In a series of adjustments to several of its indexes announced following market close on Friday, S&P Global‘s S&P Dow Jones Indices tapped Waystar as one of 10 titles “graduating” to the small-cap lineup. The move is part of the index company’s quarterly realignment, in which at least a few of its many indexes are realigned.

With the ascension of the 10 stocks including Waystar, a corresponding number of companies were deleted from the S&P SmallCap 600. Several will be familiar to investors, including fast food restaurant operator Jack in the Box and storied tech company Xerox Holdings.

Index funds are always on the hunt

It’s important to stress that inclusion on an index, no matter how prominent, does not affect the underlying fundamental performance of an affected company. However, as index funds continue to be hotly popular, the increased demand should at least support their stock price.

Should you invest $1,000 in Waystar right now?

Before you buy stock in Waystar, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Waystar wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $670,781!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,023,752!*

Now, it’s worth noting Stock Advisor’s total average return is 1,052% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 8, 2025

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends S&P Global. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.