7 high-flying stocks split in 2024 – but this is the only split stock worth buying right now

During periods of increased volatility and uncertainty, it is not uncommon for professional and retail investors to turn to companies with a proven track record of significantly outperforming Wall Street’s benchmark index, the S&P500, on the long term. This is why FAANG class actions have been so popular over the past decade.

But when things got tough on Wall Street over the past three years, it was the stocks that made splits that investors flocked to.

Image source: Getty Images.

More than half a dozen blue-chip companies became split stocks in 2024

To put it simply, a “stock split” is an event by which a publicly traded company changes both its stock price and the number of shares outstanding by the same factor. This is a purely superficial movement that has no impact on the market capitalization or underlying operations of a company.

Stock splits come in two forms: straight and reverse. The purpose of a forward stock split is to make shares more affordable to retail investors who might not have access to split stock purchases through their online broker. In comparison, a reverse stock split increases a company’s stock price, often in an effort to meet the minimum continued listing standards of a major U.S. exchange.

Since the start of 2024, seven high-flying stocks have announced or completed a forward stock split:

  • Retail leader Walmart (NYSE:WMT) announced a 3-for-1 stock split on January 30and completed its first split in 25 years after the market closed on February 23.

  • The board of directors of a fast-casual restaurant chain Chipotle Mexican Grill (NYSE:CMG) approved a 50-to-1 split on March 19, which will take effect after the closing bell on June 25.

  • Corporate Identity Uniform Company Ribbons (NASDAQ:CTAS) gave the green light to a 4-for-1 stock split on May 2. The shares will begin trading on a split-adjusted basis after the market closes on September 11.

  • On May 14, the board of directors of a Japanese consumer electronics company Sony Group (NYSE:SONY) I have agreed to a 5-for-1 stock split, which will take effect on October 8 for the company’s American Depositary Receipts (ADRs).

  • The juggernaut of electronic components Amphenol (NYSE:APH) saw its board of directors approve a 2-for-1 forward split on May 20, which was completed on June 11.

  • On May 21, a wafer manufacturing equipment company Search Lam (NASDAQ: LRCX) has approved a 10-for-1 stock split, which will take effect after the close on October 2.

  • The giant of artificial intelligence (AI) Nvidia (NASDAQ:NVDA) announced a 10-for-1 forward stock split on May 22, which was enacted after the market closed on June 7.

Although these seven companies have well-defined competitive advantages and have seen their respective valuations skyrocket over the years, only one of these split stocks currently looks worthy of investment.

These six split stocks are all historically expensive and/or expected to face headwinds.

You may be thinking that the core infrastructure of the AI ​​revolution, Nvidia, is the logical stock to buy this split group –…

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