2 Unstoppable Stock-Split Growth Stocks That Could Soar 51% and 64%, According to Wall Street
A resurgence in the popularity of stock splits has been one of the most intriguing market trends in recent years. While this was a common practice in the late 1990s, it had subsequently fallen out of favor before enjoying a renaissance in recent years. Companies generally embark upon this course after years or even decades of strong operating and financial results have driven the stock price out of reach of everyday investors.
While a stock split doesn't change the intrinsic value of the business, it makes shares more affordable for employees and everyday investors, which is often the reason companies cite as the primary motivation behind the split.
Historically, top-performing companies continue to generate robust returns. Businesses that conduct stock splits generate stock price increases of 25%, on average, in the year following the announcement, compared with average gains of 12% for the S&P 500, according to a report issued by Bank of America analyst Jared Woodard.
Source Fool.com
