Stock Splits Overview - Stock splits remain a major theme in the market this year, with companies like Deckers Outdoor and Broadcom recently announcing splits [1] - Stock splits make shares more affordable for investors, particularly retail investors, without changing the valuation or fundamentals of the stock [1] - Recent examples include Walmart, Nvidia, and Chipotle Mexican Grill, which have split their stocks to attract more investors [1] Costco Wholesale (COST) - Costco's stock has risen 44% over the last 12 months, reaching 815pershare,withahighvaluationof46timesfutureearningsestimates[2]−Thecompanyhasnotsplititsstockin24years,andthecurrenthighsharepricemaypromptmanagementtoconsiderasplit[2]−Costco′sstockhasrisennearly200700, more than double its price at the start of the year, with a P/E ratio of 39 [4] - The stock has fallen 43% from its 52-week high of 1,229,butastocksplitcouldmakeitmoreattractivetoretailinvestors[5]−Year−to−date,SuperMicroComputer′sstockhasrisen148850 [6] - The stock's valuation is sky-high at about 90 times future earnings estimates, and it has risen nearly 3,000% since its 2012 IPO [6] - With the share price approaching $1,000, a stock split may be considered, especially as the company continues to benefit from the AI trade [6]
Costco(COST) Investor Place·2024-07-26 18:34