Stock Market Sell-Off: 1 Stock-Split Stock to Buy Now and Hold Forever
The stock market sell-off has been brutal on technology companies this year, as rich valuations, surging inflation, rising interest rates, and fears of a recession have combined to dent investors' confidence in the prospects of fast-growing companies.
Fortinet (NASDAQ: FTNT) is one such company that has suffered thanks to the market sell-off. Shares of the cybersecurity specialist are down 21% so far this year despite the impressive growth in its revenue and earnings, a far cry from the outstanding returns it delivered in 2021. However, Fortinet management executed a 5-for-1 stock split on June 22, a move that makes this high-growth company accessible to a bigger pool of investors.
Of course, Fortinet stock's valuation and market cap remain the same. It's just that Fortinet shareholders will now have five shares for every share they held before the split. But the move could attract more retail investors toward the stock -- the split has reduced the price of each Fortinet share to less than $60 -- which wouldn't be surprising given its bright prospects. Let's look at the reasons why this beaten-down stock-split play is worth buying following its slide in 2022.
Source Fool.com
