Stock Split Watch: 2 Magnificent Growth Stocks to Buy Now and Hold Forever
Investors tend to get excited when a company splits its stock. That may seem irrational since stock splits have no direct impact on fundamentals like revenue or valuation, but there is a thread of logic in that reaction. stock splits are only necessary after significant share price appreciation, which itself hints at a strong underlying business.
With that in mind, Costco Wholesale (NASDAQ: COST) and (NASDAQ: MELI) are prime candidates for stock splits given that their shares currently trade at $555 and $1,223, respectively. But both stocks are worth buying even if that doesn't happen. Here's why.
Membership-based retailer Costco reported humdrum financial results in the most recent quarter as the broader retail industry continued to struggle with high inflation. Revenue rose just 2% to $53.6 billion, reflecting a 4.8% increase in store traffic offset by a 4.3% decrease in average ticket price, and earnings under generally accepted accounting principles (GAAP) declined 4% to $2.93 per diluted share. However, growth should reaccelerate as the economy improves.
Source Fool.com
Mercadolibre Inc Stock
The stock is an absolute favorite of our community with 29 Buy predictions and no Sell predictions.
On the other hand, the target price of 1853 € is below the current price of 1855.0 € for Mercadolibre Inc, so the potential is actually -0.11%.
