March 27, 2024
Stock Split Fever: Identifying Companies Poised for the Next Move
Source: iQoncept/ShutterStock.com When Chipotle (NYSE:CMG) unleashed its 50-for-1 stock split move, equities pundits were left slack-jawed. Stock splits, though superficial, still possess a mystical aura that traditionally excites investors. Despite not fundamentally altering a company’s profile, a stock split charms shareholders by increasing outstanding shares while effortlessly deflating the stock price. This sleight of hand, a strategic ploy to appeal to a wider investor base, typically lures sidelined investors. Chipotle, with its enticing fundamentals, promises a soar post-split – a template that may coax other enterprises harboring lofty stock prices to contemplate a split. Costco – The Everyday Retail Giant