The Tabcorp Holdings Limited (ASX: TAH) share price has been a positive performer on Wednesday.
In afternoon trade, the gaming company's shares are up 2% to $5.09.
This means the Tabcorp share price is up almost 5% since the start of the week.
Why is the Tabcorp share price pushing higher this week?
The Tabcorp share price was given a boost this week after S&P Dow Jones Indices announced that the company would be added to the exclusive ASX 50 index at the next rebalance.
According to the release, Tabcorp and ResMed Inc. (ASX: RMD) will be joining the index on 20 September. This is at the expense of struggling infant formula company A2 Milk Company Ltd (ASX: A2M), energy company AGL Energy Limited (ASX: AGL) and fuel retailer Ampol Ltd (ASX: ALD).
There is an additional removal from the ASX 50 index due to the recent Woolworths Group Limited (ASX: WOW) demerger of Endeavour Group Limited (ASX: EDV). The latter was automatically added to the index following the demerger, giving it 51 constituents.
The addition of the company to the ASX 50 is good news for the Tabcorp share price for a couple of reasons. As well as index tracking funds having to buy its shares, some fund managers will now be able to invest. This is because fund managers can sometimes have strict investment mandates allowing them to only buy shares from certain indices.
Is it too late to invest?
The good news is that the team at Macquarie Group Ltd (ASX: MQG) still see a lot of value in its shares.
Last month the broker put an outperform rating and $6.45 price target on its shares. Based on the current Tabcorp share price, this implies potential upside of almost 27% over the next 12 months.
Macquarie believes the market is undervaluing its lotteries and Keno businesses.
