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Top 7 Upcoming Stock Splits: Smart Buys for Strategic Investors

Discover 7 promising stocks set to split soon, offering potential growth opportunities. Learn how to invest smartly before these stock splits and boost your portfolio.

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Have you ever found yourself wishing you could rewind time to catch that one stock before it skyrocketed? You're not alone—many investors share that dream. In fact, studies show that stocks often see a short-term boost post-split, making them prime targets for savvy investors. As Warren Buffett famously said, "The stock market is a device for transferring money from the impatient to the patient."

So, buckle up, because stock splits are your golden ticket to get in on the action before the next surge. Let's explore seven hot stocks poised for upcoming splits that could send their prices soaring and potentially transform your investment portfolio.

1. Cintas

Logo from Logowik

Cintas Corporation (NASDAQ:CTAS) is riding a wave of momentum in the corporate identity uniform sector. This company isn’t just handing out uniforms; it's dressing up success. Over the past six months, Cintas has seen a stellar 27% rise, reaching $711 per share. The announced 4-for-1 stock split is set for September 2024, making it an attractive option for savvy investors. In Q3 FY2024, Cintas reported a 9.9% increase in revenue, hitting a record $2.41 billion, with diluted EPS jumping 22.3% to $3.84. Expect the split to further energize its trajectory.

2. Broadcom

Image from Nasdaq

Broadcom (NASDAQ:AVGO) is a titan in the semiconductor industry, perfectly positioned to capitalize on the AI boom. In Q2, Broadcom’s revenue surged 43% year-over-year to $12.5 billion, with AI revenue alone skyrocketing 280% to $3.1 billion. The upcoming 10-for-1 stock split on July 12 is expected to attract more investors. Broadcom’s unique market position and significant gains (108% over the past year) make it a compelling choice for those looking to ride the AI and data center wave.

3. Chipotle Mexican Grill

Image from Wikimedia Commons

Craving a good investment? Chipotle Mexican Grill (NYSE:CMG) might just satisfy your appetite. Known for its fast-casual Mexican cuisine, Chipotle posted a 7% comp sales growth in Q1. Its stock has climbed nearly 372% over the past year, currently priced at a hefty $3,420. The upcoming 50-for-1 stock split on June 25 will make shares more accessible, potentially drawing in a broader range of investors. Despite the premium valuation, Chipotle’s long-term growth prospects remain very bullish.

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4. Barrett Business Services

Image from greatplacetowork.com

Barrett Business Services (NASDAQ:BBSI) specializes in business management solutions, riding the trends of automation and a strong labor market. The company’s Q1 gross billings increased 7% year-over-year, with an 11% rise in worksite employees. BBSI’s stock has surged 53% over the past year, and the upcoming 4-for-1 stock split on June 21 could further boost its appeal. While the company posted a slight quarterly loss, analysts project profitability for 2024, making it a solid pick.

5. L’Air Liquide

Image from NS Energy

Air Liquide SA (OTCMKTS:AIQUY) is a French multinational supplying industrial gases, known for steady long-term growth. The upcoming 11-for-10 stock split on June 24 could enhance its compounding potential for investors. AIQUY’s stable industry demand and a 1.74% dividend yield make it a reliable choice for those seeking long-term investments. This is the kind of stock you can buy, hold, and watch grow over decades.

6. United States Lime & Minerals

Image from uslm.com

US Lime & Minerals (NASDAQ:USLM) is seeing a steady rise in its stock, thanks to solid fundamentals. In Q1 2024, USLM’s revenues grew 7.4% to $71.7 million, with gross profit surging 27.6%. The upcoming 5-for-1 stock split on July 15 could spur near-term interest. Although some caution is warranted, USLM’s strong performance and growth prospects make it a promising long-term buy.

7. Sony Group Corporation

Image from variety.com

Sony Group Corporation (NYSE:SONY) is a global leader in electronics, gaming, and entertainment. The upcoming 5-for-1 stock split in October is likely to drive investor interest. Sony’s PlayStation 5 sales have reached nearly 60 million units, and its revenue hit a record 13 trillion JPY in fiscal 2023. With its strong financials and growth in gaming and streaming, Sony’s stock is on an upward trajectory. However, keep an eye on currency fluctuations in Japan when considering this investment.

Key Takeaways

Investing in stocks before a split can be a smart move, but it’s crucial to do your homework. Look beyond the split and focus on the fundamentals and future growth potential. These seven stocks offer a mix of robust performance and promising prospects, making them worthy of consideration for your investment portfolio.

Final Thoughts

Which of these stocks are you most excited about? Have you experienced the benefits of investing before a stock split in the past? Share your thoughts and join the conversation!

Ready to put your newfound knowledge into action? Start researching these stocks, evaluate their fundamentals, and consider how they fit into your investment strategy. Don’t miss out on the potential gains these stock splits could bring.

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