2 Unstoppable Stock-Split Growth Stocks That Could Soar 48% and 80% in 2026, According to Certain Wall Street Analysts
The Motley Fool·2026-01-10 12:02

Core Insights - Stock splits have regained popularity due to rising corporate profits and stock prices, making shares more accessible to average investors [1][2] - Companies that implement stock splits typically see an average stock price increase of 25% in the year following the announcement, compared to 12% for the S&P 500 [3] Company Analysis: Netflix - Netflix has shown significant long-term growth, with a 690% increase over the past decade, leading to a 10-for-1 stock split last year [4] - Currently, Netflix's stock is 32% below its 2025 peak, influenced by uncertainties regarding its bid for Warner Bros. Discovery assets [5] - Despite these concerns, Netflix's strategy of expanding its streaming library and introducing a lower-priced ad-supported tier has solidified its market position [6] - In Q3, Netflix reported record revenue of $11.5 billion, a 17% year-over-year increase, with diluted EPS rising 27% [7] - Wall Street analysts are optimistic, with 65% rating Netflix as a buy or strong buy, and an average price target of $126, indicating a 39% upside potential [8] - Jefferies analyst James Heaney has a higher price target of $134, suggesting a potential upside of 48% [9] - The current trading price of Netflix at 28 times forward earnings presents a buying opportunity given its growth track record [11] Company Analysis: ServiceNow - ServiceNow has experienced a stock decline of approximately 28% in 2025, but it remains up over 800% in the past decade, leading to a 5-for-1 stock split [12] - The company focuses on AI and digital transformation, providing applications that automate tasks and streamline workflows across various business processes [13] - In Q3, ServiceNow's revenue grew 22% year-over-year to $3.4 billion, with adjusted EPS increasing by 29% to $4.86 [14] - The company's remaining performance obligation (RPO) rose 24% to $24.3 billion, indicating potential for future growth [15] - Wall Street is bullish on ServiceNow, with 91% of analysts rating it a buy or strong buy, and an average price target of $223, suggesting a 53% upside [16] - Morgan Stanley analyst Keith Weiss has a more aggressive price target of $263, indicating an 80% potential gain based on the company's strong execution [17] - The stock is currently valued at 30 times next year's expected earnings, but if ServiceNow meets Wall Street's benchmarks, it could be considered a bargain [18]