Stock splits are a hot topic among investors, and for good reason. While they don’t alter the fundamentals of a stock, they do send a powerful message from management – that they anticipate the stock continuing to rise. Stock splits are key milestones in a stock’s growth trajectory, as they decrease the price of an individual share, making it more accessible to retail investors.
Research suggests that stocks may outperform after a split, possibly due to the momentum that led to the split and the confidence management has in future growth. With that in mind, let’s take a look at three companies that could be gearing up for a stock split in the near future.
- Booking Holdings (NASDAQ: BKNG)
Booking Holdings is the largest online travel agency globally and has never undergone a stock split, apart from a reverse split in 2003 during the dot-com bubble aftermath. With shares now hovering around $4,000 each, Booking Holdings towers over most U.S. stocks in terms of individual share price, ranking just below NVR and Berkshire Hathaway Class A shares.
While CEO Glenn Fogel has played down expectations of a split, citing a preference for long-term investors, the company’s rising share price may eventually push management in that direction.
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AutoZone (NYSE: AZO)
Another top contender for a potential stock split is AutoZone, one of the most expensive stocks on the market at over $3,000 per share. The company, known for its consistent growth and strong business model, last split its stock in 1994. With a robust track record of performance and a recession-proof business model, AutoZone could be primed for a split to make its shares more accessible. - MercadoLibre (NASDAQ: MELI)
Last but not least, MercadoLibre, the Latin American e-commerce leader, is also on the radar for a potential stock split. The stock recently surpassed $2,000 per share and has seen considerable growth over the years. With a diverse business portfolio and strong margins, MercadoLibre could be a strong candidate for a split as it continues to expand and evolve.
As these companies show strong signs of growth and innovation, a stock split could be the next logical step to attract a broader investor base and capitalize on their upward momentum.
Stay tuned to Extreme Investor Network for more insights and updates on potential stock-split opportunities in the market. Don’t miss out on these second chances for potentially lucrative investments – sign up for our newsletter to stay ahead of the curve!