Are you looking for the hottest trends in the stock market right now? Look no further than companies enacting stock splits. That’s right, while AI has been stealing the spotlight, stock splits have become one of the most exciting trends on Wall Street in 2023.
But what exactly is a stock split? It’s an event that allows publicly traded companies to adjust their share price and outstanding share count by the same magnitude, without affecting the company’s market cap or performance.
There are two types of stock splits: forward and reverse. And investors are undeniably favoring forward splits, where companies make their shares more affordable for everyday investors and employees, showing innovation and outperformance.
Since the beginning of the year, around a dozen high-profile companies have announced stock splits. But not all stock-split stocks are created equally. According to Wall Street analysts, there are three “Class of 2024” stock-split stocks expected to grow their earnings per share (EPS) by at least 151% by 2028.
One of the fastest-growing stock-split stocks is Nvidia (NASDAQ: NVDA), with an expected EPS growth of 383% by 2028. This leading AI titan recently completed a 10-for-1 stock split and is driving its growth through artificial intelligence solutions. Despite the optimistic forecasts, it’s important to consider historical trends and competition in the AI industry.
Chipotle Mexican Grill (NYSE: CMG) is another standout stock-split stock with a forecasted EPS growth of 151% by 2028. The fast-casual restaurant chain’s success lies in its focus on quality food, limited menu, and out-of-the-box innovation like digital drive-thru lanes.
Lastly, Broadcom (NASDAQ: AVGO) is projected to achieve an impressive 185% EPS growth by 2028. The networking solutions specialist recently completed a 10-for-1 stock split and is benefiting from its AI networking ties and strategic acquisitions.
If you’re considering investing in these fast-growing stock-split stocks, it’s essential to weigh the potential risks and rewards. While the forecasts look promising, it’s crucial to analyze the competitive landscape and industry trends before making any investment decisions.
For more insights on investment opportunities and market trends, stay tuned to Extreme Investor Network for expert analysis and recommendations to help you navigate the world of finance.