Whole Foods Market, Inc. (NASDAQ:WFM) has opened 17 new stores in fiscal year 2013, as of May 7. Continuing success in this area is a key factor that can aid future growth.
Whole Foods Market, Inc. (NASDAQ:WFM) had a blowout quarter for earnings that increased its share price by about 10% on May 8. That was also when the two-for-one stock split was announced. So far, its share price is almost exactly the same as it was on that day. That, however, is about a 15% increase from its share price as of Jan. 1, 2013. Also, the market has gone down a lot in the past few days, so the short-term results of its split so far are hard to see because of that. So far, so good for this split, and I am excited to see what the next 10 years will bring for this company.
NIKE, Inc. (NYSE:NKE)’s share price has increased by about 20% in the six months since its stock split. Strong results have helped, but I would like to believe that part of it is that shares are more affordable for new investors to buy. NIKE, Inc. (NYSE:NKE) also likes to split its shares around the $100 mark, and it looks to be headed toward another long-term climb toward $100 per share and another split.
NIKE, Inc. (NYSE:NKE) has experienced many years of phenomenal growth due to its tremendous success in the shoe market, such as through its success with its Jordan brand. Having the best athletes in the world endorse its products has proven to be very profitable.
Revenue for NIKE, Inc. (NYSE:NKE) is expected to grow about 4% this year, and closer to 9% next year. If this growth continues, doubling of its current revenue will occur in the medium range.
Conclusion
I believe stock splits provide considerable value over the long run to shareholders. Johnson & Johnson (NYSE:JNJ) is a company I believe will split its shares again soon.
For investors who are looking to buy a company before it announces a two-for-one stock split, it could be a great choice for you. This could especially be true because Johnson & Johnson (NYSE:JNJ) is a strong blue-chip company with a long history of growing dividends and increasing share prices.
The article Prediction of a Future Stock Split originally appeared on Fool.com and is written by Anthony Parsons.
Anthony Parsons owns shares of Johnson & Johnson and Whole Foods Market. The Motley Fool recommends Johnson & Johnson, Nike, and Whole Foods Market. The Motley Fool owns shares of Johnson & Johnson, Nike, and Whole Foods Market. Anthony is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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