3 Companies That Should Consider a 10-for-1 Stock Split

Core Viewpoint - Nvidia's recent 10-for-1 stock split may encourage other companies to consider similar actions to make their shares more accessible to average investors [1][2]. Group 1: Nvidia Stock Split - Nvidia's stock split will occur after market close on June 7, marking its second split in three years, following a four-for-one split in July 2021 [1]. - Shareholders will receive nine new shares for every existing share held, making the stock more affordable for retail investors [1]. Group 2: NVR (NVR) - NVR is a leading home builder in the U.S., operating in 36 metropolitan markets across 16 states, with a focus on single-family homes [4]. - The company's stock price has increased significantly from $3,400 five years ago to over $7,750 currently, necessitating an 80-for-1 stock split to reach a price of $100 [6]. Group 3: MercadoLibre (MELI) - MercadoLibre, a prominent Latin American company, has never conducted a stock split in its 25-year history, with current shares trading over $1,700 [8]. - The company's stock has appreciated 181% over the past five years, significantly outperforming the S&P 500, and analysts suggest a stock split could make shares more accessible [9][10]. Group 4: Fair Isaac (FICO) - Fair Isaac is known for its FICO score, with two main segments: Scores and Software, both of which saw revenue growth in Q2 2024 [12][13]. - The company anticipates nearly $1.7 billion in revenues for 2024, with a non-GAAP earnings per share estimate of $22.80, indicating a high valuation at 56.5 times those earnings [14][15].