8 Companies That Could Issue The Next Stock Split
When a stock’s share price gets excessively high, purchasing even one share may become too costly for small investors. While stock splits do not create inherent value, they often act as bullish catalysts. Companies typically initiate splits following long periods of strong returns, signaling management’s confidence in future growth.
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In recent years, several high-profile companies have completed stock splits to improve investor access and liquidity, including Nvidia Corp. (ticker: NVDA), Broadcom Inc. (AVGO), Walmart Inc. (WMT), Chipotle Mexican Grill (CMG) and Super Micro Computer Inc. (SMCI). Wall Street typically views these stock splits favorably, and many stocks continue to outperform once the splits are completed.
When Do Stocks Split?
Companies often implement stock splits when their share prices get prohibitively high, frequently $400 or higher. Splits usually take place when a stock is trading near all-time highs and the company’s business is performing well. If a company is struggling or underperforming, management likely won’t see a reason to split. Companies with a history of splitting their stock may be more likely to do so again, especially if it has been many years since the last split. Stock splits are often considered a bullish indication of management’s confidence in the company’s outlook.
CFRA analysts recommend these eight stocks to buy that could be the next to announce a split:
— AutoZone Inc. (AZO)
— First Citizens BancShares Inc. (FCNCA)
— KLA Corp. (KLAC)
— ASML Holding NV (ASML)
— BlackRock Inc. (BLK)
— Eli Lilly & Co. (LLY)
— Costco Wholesale Corp. (COST)
— McKesson Corp. (MCK)
AutoZone Inc. (AZO)
Auto parts retailer AutoZone may be one of the best candidates for a stock split. AutoZone has two past stock splits, and its share price is up more than 367% in the past 10 years to approximately $3,672. Analyst Garrett Nelson says AutoZone is generating steady earnings and revenue growth, the stock is attractively valued and the company has a history of aggressive share buybacks. Nelson says same-store sales, new store openings, strong gross margins and impressive cost controls will help AutoZone maintain its growth. CFRA has a “buy” rating and $3,800 price target for AZO stock, which closed at $3,742.02 on March 5.
First Citizens BancShares Inc. (FCNCA)
U.S. bank First Citizens BancShares is another candidate for a stock split given its share price has gained about 700% in the past 10 years, climbing to more than $2,200 per share at its recent height. First Citizens has never split its stock since its initial public offering in 1992. Analyst Alexander Yokum says First Citizens has a track record of taking calculated risks that create value for investors, including its 2023 acquisition of Silicon Valley Bank. Yokum says First Citizens’ assets have quadrupled since 2020, but investors don’t fully appreciate that growth. CFRA has a “buy” rating and $2,700 price target for FCNCA stock, which closed at $1,942.17 on March 5.
KLA Corp. (KLAC)
KLA is a semiconductor equipment company that produces yield monitoring and process control systems. KLA has implemented several stock splits in the past, but has not done so since 2000. It is an excellent candidate for another split in the near future given its share price is up more than 2,000% in the past 10 years to more than $1,400. Analyst Brooks Idlet says KLA is the market leader in process control and will profit from an artificial intelligence-fueled acceleration in leading edge semiconductor complexity. CFRA has a “buy” rating and $1,854 price target for KLAC stock, which closed at $1,429.36 on March 5.
ASML Holding NV (ASML)
ASML produces photolithography systems and other processing equipment used in semiconductor fabrication. ASML is the only major producer of the extreme ultraviolet (EUV) lithography equipment necessary to produce advanced AI chips. ASML shares are up 1,400% over the past 10 years to more than $1,300. Idlet says ASML’s near monopoly on advanced lithography makes it a critical player in advanced AI chip manufacturing. He says the company’s next-generation high numerical aperture EUV systems will further widen ASML’s competitive moat and give it substantial pricing power. CFRA has a “strong buy” rating and $1,804 price target for ASML stock, which closed at $1,368.36 on March 5.
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BlackRock Inc. (BLK)
BlackRock is the largest U.S. asset manager and is a leading global investment management company. BlackRock shares are up about 300% over the past 10 years more than $1,000 per share. The company has not split its stock once since going public at $14 per share back in 1999. Analyst Catherine Seifert says BlackRock’s proprietary Aladdin risk management technology platform, its industry-leading exchange-traded fund franchise and its strategic expansion into alternative assets differentiate the stock from competitors and support her long-term growth outlook for the company. CFRA has a “buy” rating and $1,350 price target for BLK stock, which closed at $1,035 on March 5.
Eli Lilly & Co. (LLY)
Eli Lilly produces brand-name prescription drugs to treat a wide range of medical conditions, including diabetes, cancer and neurological disorders. Lilly’s last stock split came in 2015, but its share price has risen more than 1,400% in the past decade to trade right around $1,000 per share. Analyst Sel Hardy says Lilly has multiple growth catalysts ahead in 2026, including sales of GLP-1 drugs Mounjaro and Zepbound and international expansion of Alzheimer’s disease drug Kisunla. In addition, Hardy says Lilly has a healthy pipeline of additional products in late-stage trials. CFRA has a “strong buy” rating and $1,325 price target for LLY stock, which closed at $983.26 on March 5.
Costco Wholesale Corp. (COST)
Costco is a large, members-only retailer focused primarily on the U.S. and Canadian markets. In the past 10 years, Costco shares are up roughly 670%. That gain has brought its share price up to the $1,000 range. Despite its rising share price, Costco has not implemented a stock split since 2000. Analyst Arun Sundaram says he is bullish on Costco’s membership metrics, industry-leading growth and potential for adding at least 30 new locations per year. Costco has reported a 90%-plus membership renewal rate. CFRA has a “buy” rating and $1,075 price target for COST stock, which closed at $982.57 on March 5.
McKesson Corp. (MCK)
McKesson is one of the largest distributors of pharmaceuticals and medical-surgical supplies in the U.S. It is another excellent candidate for a stock split given its share price has gained more than 500% in the past 10 years, climbing to more than $900. McKesson has only one previous stock split way back in 1998. Analyst Daniel Rich says McKesson’s multi-specialty and oncology businesses have performed well and its acquisitions of Prism Vision and Core Ventures will create long-term value. Rich says GLP-1 drug distribution is also a positive catalyst. CFRA has a “buy” rating and $1,080 price target for MCK stock, which closed at $931.35 on March 5.
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8 Companies That Could Issue The Next Stock Split originally appeared on usnews.com
Update 03/06/26: This story was previously published at an earlier date and has been updated with new information.