| Stock | Price | 52 Week Range | Marketcap | EPS | Dividend Yield | Chart (24H) | Sector | Employees | Last Updated |
|---|---|---|---|---|---|---|---|---|---|
| $153.96 | 18.94B | 8.65 | 1.71% | Consumer Cyclical | 10,700 | 14 hours ago | |||
| $141.97 | 3.46T | 3.09 | 0.03% | Technology | 29,600 | 14 hours ago | |||
| $50.24 | 67.69B | 1.13 | 0.00% | Consumer Cyclical | 125,000 | 14 hours ago | |||
 Broadcom Inc. AVGO | $248.70 | 1.17T | 2.74 | 0.95% | Technology | 20,000 | 14 hours ago |
Strap in, Market Monitors! Before you rush off to check your portfolios or make the next big trade, take a moment to digest this fact: **Williams-Sonoma** is about to announce its eighth stock split. Not only is this a remarkable event for the company, but it’s also one of the most exciting opportunities for savvy investors like you.
Stock splits have been all the rage on Wall Street lately, second only to the buzz surrounding artificial intelligence (AI). In a financially charged environment where every percentage point counts, stock splits serve a dual purpose. They make high-flying stocks more accessible to everyday investors while often driving significant returns. For instance, companies enacting forward stock splits have historically outpaced the broader market by generating an average return of 25.4% within a year of the split announcement, according to research from Bank of America.
Now, why should you care about **Williams-Sonoma**? This company has not only shown an extraordinary 27,000% gain since its IPO, but it also maintains a record-breaking long-term performance that puts it leagues ahead of many competitors. So let’s get into the nitty-gritty of why **Williams-Sonoma** and other companies with impending stock splits are hot targets for your investment strategy.
Editor's Note: Analysis and insight for this article were originally sourced from our friends at The Motley Fool
Here’s the scoop. **Williams-Sonoma** is prepping to roll out a 2-for-1 stock split. This will mark its eighth split since it debuted on the market in 1983. The strategy behind this move? Make their stock more accessible to you and me, and lure in employees via attractive employee stock purchase plans (ESPPs).
The results are palpable. Since its IPO, **Williams-Sonoma** has surged approximately 27,000%. Yes, you read that right—27,000%. The trajectory goes even higher when you include dividend payments. But it doesn’t just rest on its laurels. With two-thirds of its sales originating from digital channels, the company has demonstrated exceptional e-commerce prowess. Furthermore, it targets high-income consumers, rendering it resilient during economic downturns. And let’s not forget the current market conditions, making home remodeling more enticing than moving due to sky-high mortgage rates. All in all, **Williams-Sonoma** stands as a rock-solid growth story.
Historically, companies that have conducted forward splits have a phenomenal track record of outperforming the broader market. According to Bank of America Global Research, companies announcing forward splits have generated an average return of 25.4% in the 12 months following their initial split announcement since 1980, almost more than double the average return for the S&P 500 during the same period.
Williams-Sonoma (WSM): Upcoming 2-for-1 Split with 27,000% Historical Gain
| Consensus Rating | Average Price Target | Current Price | Potential Gain | Number of Ratings |
|---|---|---|---|---|
| Hold | $304.07 | $287.30 | 5.84% | 16 |
Summary of Analyst Outlook
The consensus rating for **Williams-Sonoma Inc. (WSM)** is a Hold, with a strong majority of analysts recommending a Hold. The average price target is $304.07, indicating a potential gain of 5.84% based on the current stock price. Analysts expect WSM to grow, with a next quarter earnings estimate of $3.19 and sales forecast of $1.81B. The stock has outperformed its overall industry in terms of EPS but underperformed in terms of sales in the last year. With a strong buy rating from multiple analysts, including RBC Capital and Telsey Advisory Group, the stock is considered a high performer by many experts.
**Nvidia**, another behemoth, performed a dazzling 10-for-1 forward split this past June. The cause? Its shares were skyrocketing, buoyed by its unchallenged leadership in AI technology. Since the split, **Nvidia**’s market cap has seen a meteoric rise fueled by soaring demand for its H100 GPUs, central to large language models and generative AI solutions.
In a very short time span, **Nvidia**’s H100 graphics processing units (GPUs) became the preferred choice of pretty much every business looking to train large language models and run generative AI solutions in their high-compute data centers. With demand for **Nvidia**’s chips handily outweighing their supply, the company has enjoyed exceptional pricing power and operational scaling that will be written about in textbooks for decades to come.
With exceptional pricing power and scalable operations, **Nvidia** isn’t just playing the game—it’s defining it. Its dominance in the AI chip market drives unparalleled financial performance, making it one of the most attractive high-performers for investors post-split.
Nvidia (NVDA): AI Market Leader Riding High on Recent 10-for-1 Split
| Category | Data |
|---|---|
| Consensus Rating | Strong Buy |
| Average Price Target | $158.17 |
| Current Price | $123.54 |
| Potential Gain | 28.03% |
| Number of Ratings | 41 |
Summary of Analysts’ Outlook
Analysts have a highly optimistic view of **Nvidia (NVDA)** with a consensus rating of Strong Buy. This is based on 38 buy ratings, 3 hold ratings, and 0 sell ratings from 41 Wall Street analysts. The average price target is significantly higher than the current price, indicating a substantial potential gain of approximately 28% based on the current market price.
You might be thinking, why mention a burrito joint in the same breath as tech powerhouses? Well, **Chipotle Mexican Grill** executed a 50-for-1 split back in March. High stock prices necessitated this move, making it easier for everyday investors to jump on board.
**Chipotle**’s success has always been its transparent food preparation, which involves the use of responsibly raised meats and locally sourced vegetables (when possible), as well as its limited menu. Keeping its menu relatively small helps its employees quickly prepare meals, and ensures that lines in its stores keep moving, driving strong customer loyalty and financial success.
But there’s more to it than just numbers. **Chipotle** excels in efficiency and operational expertise. By focusing on transparent food sourcing and a limited yet diverse menu, it has cemented a robust customer loyalty base. Prior to the split, **Chipotle**’s solid market performance was evident from its eye-popping stock price.
Chipotle (CMG): Transparent Food Sourcing Driving Post-Split Success
| Category | Value |
|---|---|
| Consensus Rating | Outperform |
| Average Price Target | $65.89 |
| Current Price | $62.77 |
| Potential Gain | 7.00% Upside |
| Number of Ratings | 27 |
Summary of Analyst Outlook
Analysts are generally positive about **Chipotle Mexican Grill**’s future performance. The company’s latest analyst rating maintains an Outperform consensus rating, driven in part by positive trends in its earnings estimates. Additionally, analysts have set a 12-month average price target of $65.89, indicating a reasonable upside potential of 7% assuming the current price of $62.77 holds steady. This outlook is reinforced by **CMG**’s history of consistently beating its earnings and revenue targets, which suggests a strong performance potential over the next 12 months.
Last but certainly not least, **Broadcom** announced a 10-for-1 forward split slated for June. This move follows a remarkable run driven by its technological prowess, particularly in AI networking solutions. Expanding on its first-mover advantages, **Broadcom**’s Jericho3-AI chips are revolutionizing how data centers operate, connecting up to 32,000 GPUs.
**Broadcom**’s AI solutions are designed to reduce tail latency and help maximize the computational potential of AI-GPUs. Similar to **Nvidia**, **Broadcom** has taken the bull by the proverbial horns and ridden its first-mover advantages in the AI networking space to sizable gains.
Not only is **Broadcom** innovative, but it’s also highly profitable. It leverages cutting-edge technology to stay ahead of the competition and enhance its market standing. From financial performance to technological prowess, **Broadcom** showcases why stock splits often signal strong intangibles and future growth.
Broadcom (AVGO): Unstoppable Growth in AI Networking with Upcoming Split
| Parameter | Value |
|---|---|
| Consensus Rating | Strong Buy |
| Average Price Target | $1,893.57 |
| Current Price | $1,605.53 |
| Potential Gain | 17.94% |
| Number of Ratings | 23 Analysts |
Summary of Analyst Outlook
Analysts have a very positive outlook on **Broadcom Inc. (AVGO)** stock, with a consensus rating of Strong Buy based on 22 buy ratings and 1 hold rating. The average 12-month price target is set at $1,893.57, indicating a 17.94% potential gain from the current price of $1,605.53. **Broadcom** has consistently beaten earnings per share (EPS) estimates in the past, with a 100% success rate last year. Sales forecasts are also optimistic, with a next quarter sales forecast of $12.94 billion and a strong track record of beating sales estimates.
So, there you have it, readers. As these titans gear up for significant stock splits, the stage is set. Each of these companies exhibits robust fundamentals and future potential, ensuring they remain appealing to investors like you. Keep your eyes sharp and your portfolios ready. Opportunities abound in the land of stock splits, and those who act decisively and intelligently stand to reap considerable rewards.
