Core Insights - Stock splits are gaining attention in the market, with notable companies like Walmart, Nvidia, and Chipotle completing splits, indicating a trend that may continue [1][2] - Stock splits provide easier access to high-priced stocks, allowing a broader range of investors to participate without needing fractional shares [1][2] Company Summaries Eli Lilly - Eli Lilly's shares have increased by 300% over the past three years, currently trading above $900, driven by significant revenue growth from products like Mounjaro and Zepbound [3][4] - Mounjaro generated over $5.1 billion in revenue last year, while Zepbound brought in more than $517 million in its first full quarter [3] - High demand for weight loss drugs suggests continued revenue growth, and the company's history of four previous stock splits indicates a potential for future splits [4][5] Vertex Pharmaceuticals - Vertex Pharmaceuticals has seen a 145% increase in share price over the past three years, primarily due to its successful cystic fibrosis (CF) treatments, which generated over $9.8 billion in annual revenue [6] - The company is expanding into new treatment areas, including blood disorders and non-opioid pain management, which could provide significant growth opportunities [6][7] - Vertex is also working on a new CF treatment candidate, "the vanza triple," which may enhance its market position and could lead to a stock split to lower its current share price of over $480 [7]
Stock-Split Watch: 2 Healthcare Stocks That Look Ready to Split