3 Potential Stock Splits to Add to Your 2024 Radar (2024)

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Stock splits are a common practice for corporations with high stock prices. These splits make it easier for investors to accumulate more shares which can lead to more demand. Many investors feel better about buying multiple shares at a time rather than purchasing a fractional share here and there.

Stock splits can generate plenty of buzz and introduce new investors to various stocks. Also, they can grab the attention of options traders since call and put contracts will become more affordable. Investors looking for potential stock splits before they hit the news may want to consider these assets.

Broadcom (AVGO)

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Broadcom (NASDAQ:AVGO) is the most expensive stock on this list on a per-share basis. You’ll have to save up more than $1,200 just to buy a single share of the semiconductor and software giant.

Deckers Outdoor (DECK)

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Deckers Outdoor (NYSE:DECK) is another that needs a stock split. The stock is closing in on $1,000 per share and has the momentum to reach that milestone. The stock is up by 130% over the past year and has gained 558% over the past five years.

Any stock split will make shares of the recent S&P 500 addition more affordable for the average investor. Deckers Outdoor doesn’t only have momentum on its side. Its valuation and financial growth can also move the stock higher and raise more calls for a stock split.

Furthermore, Deckers Outdoor only trades at a 34 P/E ratio and has promising athletic apparel brands like Hoka and Ugg under its corporate umbrella. Also, the company reported record revenue of $1.56 billion in Q3 FY24 which is a 16% YOY improvement. And, Deckers Outdoor raised its FY 2024 guidance and reported a 44% YOY increase in Q3 FY24 diluted earnings per share.

Thus, growth isn’t going away, and the company is expanding its profit margins too. That will lead to more gains and warrant a stock split.

Nvidia (NVDA)

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Nvidia (NASDAQ:NVDA) is no stranger to the spotlight after gaining almost 2,000% over the past five years. The AI chip producer also isn’t a stranger to stock splits.

The firm has gone through five stock splits with the most recent one in 2021 which was a 4:1 split. Shares have more than quadrupled since that split. Nvidia stock has momentum on its side based on its 82% year-to-date (YTD) gain which suggests another stock split can be in the works.

Nvidia’s recent ascent doesn’t indicate that shares are overvalued. Revenue and earnings growth have outpaced the stock’s 263% gain over the past year. The rally is backed by strong fundamentals and a dominant position in the AI industry.

Truthfully, any news around Nvidia can generate significant momentum. The stock has a 1.73 beta which makes it more volatile than the broader stock market. A stock split announcement can send the stock higher even though splits do not have a material impact on a company’s long-term prospects.

On this date of publication, Marc Guberti held long positions in AVGO, DECK, and NVDA. The opinions expressed in this article are those of the writer, subject to theInvestorPlace.com Publishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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FAQs

3 Potential Stock Splits to Add to Your 2024 Radar? ›

Don't be surprised if these three stocks split soon. Broadcom

Broadcom

Broadcom Inc. is an American multinational designer, developer, manufacturer, and global supplier of a wide range of semiconductor and infrastructure software products. Broadcom's product offerings serve the data center, networking, software, broadband, wireless, storage, and industrial markets.

https://en.wikipedia.org › wiki › Broadcom

Broadcom - Wikipedia

(AVGO): The AI boom has resulted in shares exceeding $1,200 each. Deckers Outdoor (DECK): The athletic apparel company is getting close to $1,000 per share. Nvidia (NVDA): The stock has more than quadrupled ever since its last 4:1 stock split in 2021.

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What are the 3 most common forms of stock splits? ›

Stock splits come in multiple forms, but the most common are 2-for-1, 3-for-2 or 3-for-1 splits.

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Is NVDA stock going to split in 2024? ›

With a high stock price, good momentum and an optimistic outlook, Nvidia is poised for a stock split in 2024. A split doesn't change the stock's potential for volatility, so do your research to ensure the move is right before you buy.

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What company is doing a 20 to 1 stock split? ›

Amazon stock is about to get a lot cheaper after the company announced a 20-for-1 stock split this week. The tech giant on Wednesday unveiled plans for the split — its first since September 1999 — only a month after Google parent Alphabet said it would do its own 20-for-1 split.

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How to tell when stocks will split? ›

There are no set guidelines or requirements that determine when a company will split its stock. Often, companies that see a dramatic rise in their stock value consider splitting stock for strategic purposes.

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Is Walmart stock going to split? ›

Before its split, Walmart shares were near an all-time high around $170. Chipotle, even further out on the market chart, has shares nearing $3,000 — its stock split is to be effective June 26. Walmart's 3-for-1-stock split, completed on Feb. 26, was its first in over 20 years.

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Do stocks usually go up after a split? ›

While a split, in theory, should have no effect on a stock's price, it often results in renewed investor interest, which can have a positive effect on the stock price. While this effect may wane over time, stock splits by blue-chip companies are a bullish signal for investors.

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Should you buy a stock before it splits? ›

Does it matter to buy before or after a stock split? If you buy a stock before it splits, you'll pay more per share than what it'll cost after it splits. If you're looking to buy into a stock at a cheaper price, you may want to wait until after the stock split.

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What is the most popular stock split? ›

– A 2-for-1 stock split is the most common ratio. Three-for-two splits are also common, but fractional splits are not unheard of.

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Will Nvidia stock reach $1000? ›

Nvidia stock approaches $1,000

Some analysts even see it surging well beyond $1,000 within the coming 12 months. It seems very possible considering Nvidia's earnings over the past several quarters.

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What will stocks do in 2024? ›

As a whole, analysts are optimistic about the outlook for stock prices in 2024. The consensus analyst price target for the S&P 500 is 5,090, suggesting roughly 8.5% upside from current levels.

Where will Nvidia stock be in 5 years? ›

Multiplying the projected earnings with Nvidia's five-year average forward earnings multiple of 39 suggests that its stock price could hit $2,266 per share (barring any stock splits or other events) after five years. That would translate into a jump of 162% from current levels.