A stock split is an action where a company ‘splits’ its existing shares into multiple new shares. A forward stock split lowers the price per share so that the stock can become more accessible and attractive to different investors. A 2-for-1 split means that for every one share an investor owns, the investor will now have two shares, with each new share being worth half the original price. Similarly, a 10-for-1 split implies an investor now owning ten shares for one original share. A stock split doesn’t alter the company’s market capitalization or the total value of an investor’s holdings. A split may lead to a short-term increase in trading volume and positive investor sentiment, but it does not guarantee a long-term improvement in the stock’s performance.
On August 29, Bob Keiser, Aspire Strategist Portfolios co-chief investment officer and senior market strategist, joined ‘Closing Bell Overtime’ on CNBC to talk about the impact of a Fed cut on the economy, the state of growth, and big tech stocks. Keiser stated that his firm has been bullish for 2 years and recommends maintaining exposure to large-cap core and growth stocks. He justified this strategy by pointing out that these sectors have been and continue to be the primary drivers of earnings growth. He does not believe that a Fed interest rate cut, which the Fed Funds rate is predicting with over an 80% chance for September and 2 cuts by the end of the year, will significantly alter this macro trend, though it will be a positive factor.
Keiser also acknowledged that the top 10 stocks in the index now account for ~40% of its market capitalization. However, he argued that there is a fundamental reason for this. He noted that the tech and growth sector is the only one expected to post 4 consecutive quarters of double-digit earnings growth this year, following a similar performance in the previous year. Consensus expectations also anticipate a third consecutive year of double-digit earnings growth in 2026. He said that this sustained growth is why investors have flocked to these stocks. Looking ahead to 2026, Keiser sees a potential broadening of earnings growth beyond just the tech sector. He cited S&P Global Market Intelligence data that forecasts the S&P 500 earning $300 per share. According to consensus expectations, this broadening would include double-digit earnings growth from industrials, materials, and even financials (excluding Q2 2026). He believes that this diversification of earnings is necessary for the S&P 500 to reach the $300 per share earnings target.
That being said, we’re here with a list of the 10 stocks to invest in before they split next.
Methodology
We sifted through financial media reports to compile a list of stocks trading over $400, as of September 11, that could potentially split. We then selected the top stocks with high surges in their share prices in the past 5 years and a history of stock splits. From that, we picked the top 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q2 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Stocks to Invest in Before They Split Next
10. Parker-Hannifin Corporation (NYSE:PH)
Share Price as of September 11: $769.67
Surge in Share Price in 5 Years: 268.03%
Stock Split Confirmed: No
Number of Hedge Fund Holders: 51
Parker-Hannifin Corporation (NYSE:PH) is one of the stocks to invest in before they split next. On August 29, TD Cowen raised the firm’s price target on Parker-Hannifin to $650 from $575, while keeping a Hold rating on the shares. Prior to this sentiment, the company released its record-breaking results for both Q4 and the full FY2025.
Parker-Hannifin Corporation reported a total revenue of $19.9 billion for the fiscal year, achieving a record adjusted segment operating margin of 26.1%, which is an increase of 1.2% over the previous year. The company generated a record $3.8 billion in cash flow from operations and achieved $3.3 billion in free cash flow, representing 16.8% of sales and a 109% conversion rate. Adjusted EPS grew by 7% for the year. Additionally, Parker-Hannifin ended the fiscal year with a record backlog of $11 billion.
The Aerospace segment was a major driver of the company’s success, with record sales of $6.2 billion and 13% organic growth for the fiscal year. Its backlog reached a record $7.4 billion. In contrast, the Industrial segment experienced negative organic growth, although its adjusted segment operating margin reached a record 25.1%, which was an increase of 0.9%.
Parker-Hannifin Corporation (NYSE:PH) manufactures and sells motion & control technologies and systems for aerospace & defense, in-plant & industrial equipment, transportation, off-highway, energy, and HVAC & refrigeration markets. It has 2 segments: Diversified Industrial and Aerospace Systems.
9. W.W. Grainger Inc. (NYSE:GWW)
Share Price as of September 11: $1,014.69
Surge in Share Price in 5 Years: 185.68%
Stock Split Confirmed: No
Number of Hedge Fund Holders: 55
W.W. Grainger Inc. (NYSE:GWW) is one of the stocks to invest in before they split next. On September 4, JPMorgan lowered the firm’s price target on W.W. Grainger Inc. (NYSE:GWW) to $1,035 from $1,125, while maintaining a Neutral rating on the shares. JPMorgan updated the estimates for the US distributors to reflect the recent earnings results. In Q2 2025, the company’s total sales reached ~$4.6 billion, which marked a 5.6% increase year-over-year.
The diluted EPS for this quarter was $9.97, which was an increase of $0.21 or 2.2% from the previous year. Despite strong sales growth, W.W. Grainger Inc.’s operating margin declined by 0.5% to 14.9% due to gross margin pressures.
The company’s Endless Assortment segment, which includes Zoro US and MonotaRO, was a key growth driver, with sales increasing by 19.7%. Conversely, the High-Touch Solutions segment experienced more muted growth, with sales up only 2.5%. W.W. Grainger Inc. adjusted its 2025 EPS outlook downward, with the new range now between $38.50 and $40.25, representing a roughly 1% increase at the midpoint compared to the previous year.
W.W. Grainger Inc. (NYSE:GWW) distributes maintenance, repair, and operating products & services primarily in North America, Japan, and the UK. It has 2 segments: High-Touch Solutions North America and Endless Assortment.
Hedge Fund Resource Center