As the market continues to rally, there is a new trend emerging that investors should keep an eye on – stock splits. Stock splits can create a growth catalyst for companies, making their shares more attractive to retail traders due to lower prices.
At Extreme Investor Network, we believe that stock splits can be a valuable opportunity for investors to capitalize on potential gains. Historically, companies that have split their shares have outperformed the broader market in the months following the change. This trend is evident in the recent decision by Chipotle to enact a 50-to-1 stock split, which could pave the way for more companies to follow suit.
According to Strategas, the average price of a stock in the S&P 500 is currently around $160, significantly higher than it was before the financial crisis in 2008. This could indicate a ripe environment for companies to consider splitting their shares, potentially leading to increased speculation and trading activity.
Some high-priced stocks in the S&P 500 that Strategas believes could benefit from a split include Super Micro Computer, Nvidia, Broadcom, Eli Lilly, AutoZone, Costco Wholesale, and Regeneron. These companies have seen strong performance in their respective industries and could see a boost in their stock prices if they decide to split.
At Extreme Investor Network, we encourage our members to stay informed about market trends and opportunities like stock splits. By keeping a close watch on companies that may be considering splitting their shares, investors can position themselves for potential gains in the market. Stock splits may not change a company’s fundamentals, but they can create excitement and drive interest from traders looking for more affordable investment options. Stay tuned for updates on potential stock splits and how they can impact your investment strategy.
