Stock splits don’t change the value of a company. They simply divide its profits among more shares. You can think of a split as a pizza that’s cut into slices. You still have the same amount of food. It’s just easier — and less expensive — to buy a single slice.
Nevertheless, stock splits tend to create a buzz of excitement. Companies that split their shares are usually performing well, and the ability to buy more shares of these high-flying businesses at more affordable prices is something many investors appreciate.
If you’re on the hunt for stock-split stocks, here are two of the best available to buy in the market today.
Stock split stock to buy No. 1: Walmart
People love a bargain. That’s particularly true in today’s challenging economic environment. With stubbornly high inflation driving even higher-income shoppers to search for the best deals, Walmart (NYSE: WMT) is winning market share from its higher-cost rivals.
Walmart’s shelves are well stocked with value-priced groceries and other household essentials. The retail giant’s massive scale enables it to command the best prices from suppliers. It then passes much of these savings on to its customers, which drives strong, repeat traffic to its over 10,500 stores.
The discount retailer is also enjoying solid growth in its e-commerce businesses, driven by booming demand for curbside pickup and delivery services. After surging by 23% year over year in the quarter ended Jan. 31, Walmart’s online sales now account for roughly 18% of its total revenue, or more than $100 billion annually.
Advertising is perhaps the company’s most exciting growth driver. Walmart saw a 33% surge in its global ad sales in its most recent quarter. To further fuel the growth of this high-margin segment, Walmart struck a deal to acquire Vizio in February. Vizio’s popular smart TVs and SmartCast operating system are expected to bolster Walmart’s fast-growing digital ad offerings.
With its shares trading near all-time highs, Walmart decided to reward its shareholders with a 3-for-1 stock split on Feb. 23. With several powerful growth drivers…
..
