Three Notable Stock Splits Worth Investors’ Attention
Investors often fixate on quarterly earnings reports, but another factor attracts excessive focus: stock splits. While splits can be valid business decisions, they don’t impact a company’s fundamentals. Yet, they can spotlight stocks that might otherwise fade from view. Here are three significant upcoming stock splits to watch, with two of them standing out as solid investments in the current uncertain market.
Coca-Cola Consolidated
Coca-Cola Consolidated (NASDAQ: COKE) operates as the largest Coca-Cola bottler in the U.S., catering to 14 states and the District of Columbia. Currently, its share price has been above $1,100 for most of 2025.
In March, the company’s board approved a 10-for-1 stock split. This decision awaits shareholder approval at the annual meeting on May 13, 2025, with a potential trading date on a split-adjusted basis set for May 27, 2025.
Following an underwhelming first-quarter update on April 30, where net sales decreased by 1% year over year and operating income fell by 12%, shares dropped. Still, this decline may enhance attractiveness amid market volatility. The reduced sales figures stemmed from two fewer selling days than the previous year and the timing of the Easter holiday. Yet, demand for Coca-Cola products is anticipated to endure, even during economic downturns.
Image source: Getty Images.
Fastenal
Fastenal (NASDAQ: FAST) began as a distributor of threaded fasteners but has evolved significantly. Currently, almost 70% of its sales come from non-fastener products.
On April 23, 2025, Fastenal’s board approved a two-for-one stock split, set to take effect at the close of business on May 21, 2025, for shareholders recorded as of May 5, 2025.
Despite a broader market decline, Fastenal’s stock has risen significantly this year, and the company continues to generate robust cash flow. However, caution is warranted as its shares currently trade at a high forward price-to-earnings ratio of 38. Additionally, management noted that customer sentiment may be diminishing due to uncertainties linked to trade policies.
O’Reilly Automotive
Another stock with an upcoming split that holds promise is O’Reilly Automotive (NASDAQ: ORLY), a major player in the automotive aftermarket parts industry. Despite market fluctuations, its share price has surged this year.
O’Reilly’s shares, currently trading at 32 times forward earnings, suggest a high valuation. Nevertheless, during economic downturns, increased repair costs from tariffs could encourage consumers to maintain older vehicles, potentially benefiting O’Reilly. The company plans a 15-for-1 stock split on June 9, 2025, pending shareholder approval on May 15, 2025.
Historically, O’Reilly has achieved an average annual gain of 21% since its last stock split in 2005. While past performance is no guarantee of future results, current investors may find significant long-term rewards.
Investing Considerations for Coca-Cola Consolidated
Before investing in Coca-Cola Consolidated, note that it did not make the list of the 10 best stocks recently identified by analysts. While Coca-Cola Consolidated is a prominent player, consider the alternatives that might offer stronger returns in the years ahead.
For instance, investments like Netflix on December 17, 2004, would have turned $1,000 into approximately $611,589, and Nvidia on April 15, 2005, would have grown to around $697,613. The Stock Advisor program boasts an average return of 894%, far outpacing the S&P 500’s 163% during the same period.
*Stock Advisor returns as of May 5, 2025
Keith Speights has no position in any of the stocks mentioned. The views expressed are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.
