After Chipotle and Nvidia, Is Costco the Next Big Stock-Split Stock? (And Should You Care?)
Stock splits are seeing a renaissance. During the last 15 years, we have been in the midst of a raging bull market with minimal interruptions, leading to big winning stocks trading at sky-high prices. To make it easier to gift Stock options to employees and for small-time investors to buy shares, companies have started to implement more Stock splits. Amazon, Nvidia, and are recent stock split examples, but there are many others out there.
Investors have built up a narrative that stock splits drive value. There is an idea that by making a stock trade at a lower price but with a larger total amount of shares outstanding, the stock is somehow cheaper. Does this narrative hold up in reality? Let's take a look at a stock split candidate -- Costco (NASDAQ: COST) -- to investigate this phenomenon and whether you should buy ahead of a potential stock split announcement.
Costco stock is up around 650% in the last five years and recently surpassed $900 a share. If it goes up by a little more than 10%, it will reach the $1,000 milestone. A true testament to the durable growth of the low-price membership retail model, Costco is now one of the largest companies in the United States with a market cap of $400 billion.
Source Fool.com
Chipotle Mexican Grill Inc. Stock
The stock is one of the favorites of our community with 77 Buy predictions and 1 Sell predictions.
With a target price of 2357 € there is potential for a 4767.82% increase which would mean more than doubling the current price of 48.42 € for Chipotle Mexican Grill Inc..
