Several ASX shares are under pressure following the latest S&P Dow Jones Indices rebalance.
Catapult Sports Ltd (ASX: CAT), EBOS Group Ltd (ASX: EBO), and DigiCo Infrastructure REIT (ASX: DGT) slid between roughly 4.3% and 11% after it was announced they will be removed from the S&P/ASX 200 Index (ASX: XJO) later this month.
Index removals can trigger selling pressure as exchange-traded funds and index funds that track the benchmark are forced to offload the stocks. While the move doesn't change the underlying businesses, it can still create short-term volatility.
Here's a closer look at the 3 affected ASX shares.
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Catapult Sports: Struggle to deliver consistent profits
This ASX share has lost 51% of its value over 6 months to just $1 billion. Catapult develops performance analytics technology used by professional sports teams around the world. Its wearable tracking devices and video analysis software are widely used across leagues such as the NFL, NBA, and English Premier League.
Catapult operates in a niche but rapidly growing market. As professional sports become increasingly data-driven, demand for performance analytics continues to expand.
The company also benefits from a recurring software revenue model. Subscription income from teams using its analytics platforms helps provide more predictable revenue compared with traditional hardware businesses.
Despite its growth potential, Catapult has historically struggled to consistently deliver strong profits. Investors remain sensitive to execution risk as the company balances growth investments with improving margins.
Another risk is its relatively small size compared with many ASX 200 companies. Smaller technology firms can experience larger share price swings, particularly when sentiment toward growth stocks weakens.
Ebos Group: Defensive business, thin margins
Ebos Group is one of the largest healthcare and pharmaceutical distributors across Australia and New Zealand. The ASX share also owns a growing portfolio of animal care and healthcare brands.
Ebos operates in a defensive sector. Demand for pharmaceuticals, medical supplies, and healthcare services tends to remain relatively stable regardless of broader economic conditions.
The company has also grown significantly through acquisitions, building a diversified healthcare distribution network and expanding its product portfolio across both human and animal health markets.
Strong cash flow generation has helped support consistent dividends, making the stock popular with income-focused investors.
Despite its defensive positioning, Ebos operates on relatively thin margins typical of the distribution sector. Rising costs or pricing pressure from suppliers could impact profitability.
The $3.8 billion ASX share has tumbled 31% in the past 6 months and 22% so far in 2026.
DigiCo Infrastructure REIT: Focus on data centre capacity
DigiCo Infrastructure REIT is a relatively new ASX share and focuses on digital infrastructure assets. It particularly targets data centres that support cloud computing and growing data demand.
Digital infrastructure has become a critical part of the global economy. Rapid growth in cloud services, artificial intelligence, and data storage is driving strong long-term demand for data centre capacity.
As a newer listing, DigiCo has a shorter track record compared with many established ASX infrastructure companies. That can make it harder for investors to assess long-term performance.
Since being listed in December 2024, the ASX share has dropped steadily with 64% to $1.81. DigiCo's market capitalisation has been reduced to just $1 billion.
Foolish Takeaway
Being removed from the ASX 200 Index can create short-term selling pressure, but it doesn't necessarily change a company's long-term prospects.
For investors willing to look beyond the index reshuffle, Catapult Sports, Ebos Group, and DigiCo Infrastructure REIT may still be worth watching closely.
