Stock picking

3 explosive stocks to monitor after the split in 2024

Among the most promising stocks this year, these 3 are potentially the most explosive and should be monitored in the event of a stock split.
This practice, often adopted by companies that have recorded a strong increase in value on the stock market, aims to make shares more accessible to investors, without however altering their intrinsic value.
The share split is in fact an operation by which a company divides the nominal value of its shares, increasing the overall number of shares in circulation but leaving the capitalization unchanged.
The split therefore has no impact on the performance of the stock, however the market has often rewarded companies that undertake this strategy.
A telling example is Amazon's 25% increase after its 20:1 split on June 3, 2022.
Similarly, Shopify saw an increase of more than 150% from its 10:1 split at the end of June 2022.
Let's now look at 3 stocks Wall Street which could be the protagonists of splits during 2024, thus offering stimulating opportunities for investors.
1) Chipotle Mexican Grill Despite adverse economic times and inflation challenges, Chipotle Mexican Grill (CMG) has demonstrated extraordinary resilience in the market.
With sales steadily growing, the company recently announced third-quarter revenue rose 11% higher to $2.5 billion, while earnings per share increased 23% to $11.32.
A key element of this success is Chipotle's digital strategy, with more than 35 million members in its rewards program and 37% of sales coming from digital orders.
Currently, the stock price remains within sight of its all-time high of around $2,348, signaling exceptional performance, but alerting investors to the presence of significant resistance.
Given its steady growth and high price, it would not be surprising if Chipotle opts for a stock split in 2024, thus providing further opportunities for investors.
read also 3 stocks to have in your portfolio in 2024 2) Booking The travel sector experienced an extraordinary period in 2023 and Booking Holdings (BKNG) benefited enormously from it.
In the third quarter, the company reported revenue grew 21% to $7.3 billion, while earnings per share increased 66% to $69.80.
The company set records for room nights, gross bookings, revenue and net income, thanks largely to the latest summer season.
Despite prospects for more moderate travel growth in 2024, Booking Holdings continues to maintain enviable financial performance.
The stock, currently trading at around $3,529, shows a discount of less than 1% from its all-time high.
With a slew of price target upgrades from Wall Street analysts, a stock split seems like a logical move to further tap into growth potential.
3) MercadoLibre MercadoLibre (MELI) rose 86% in 2023 and 150% from the lows of 2022, reaching $1,760.
Despite an already very high price and the prospect of exceeding $2,000, the Latin American e-commerce and fintech giant has never split its shares.
In the third quarter of 2023, the company reported net revenue rising 69% to $3.8 billion, with earnings per share up an impressive 179%.
A distinctive element is Mercado Pago, the digital payment system that has exceeded expectations by becoming a point of reference for many online merchants and physical retailers.
The company's resilient growth and penetration into a market with a sizable population suggests a stock split could be on the horizon.
read also How (and why) to buy MercadoLibre shares |DISCLAIMER The information and considerations contained in this article must not be used as the sole or main support on the basis of which to make decisions relating to investments.
The reader retains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk propensity and his time horizon.
The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to the public for savings.|

Author: Hermes A.I.

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