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.
8. AutoZone Inc. (NYSE:AZO)
Share Price as of September 11: $4,354.54
Surge in Share Price in 5 Years: 252.75%
Stock Split Confirmed: No
Number of Hedge Fund Holders: 65
AutoZone Inc. (NYSE:AZO) is one of the stocks to invest in before they split next. On September 11, Barclays analyst Seth Sigman raised the firm’s price target on AutoZone to $4,510 from $3,916, while keeping an Overweight rating on the shares as part of a FQ4 2025 earnings preview. Barclays expects earnings estimates for AutoZone to move higher post the earnings report.
Earlier in FQ3 2025, the company reported total sales of $4.5 billion, which was a 5.4% increase from the previous year. Domestic same-store sales grew by 5%, while international same-store sales were up 8.1%.
AutoZone’s domestic commercial sales grew by 10.7% year-over-year, which marked the first double-digit growth since Fq2 2023. AutoZone continued its expansion strategy by opening 54 net new domestic stores and 30 new international stores, which brought the total number of international locations to 979.
AutoZone Inc. (NYSE:AZO) retails and distributes automotive replacement parts and accessories in the US, Mexico, and Brazil.
7. Fair Isaac Corporation (NYSE:FICO)
Share Price as of September 11: $1,596.56
Surge in Share Price in 5 Years: 282.52%
Stock Split Confirmed: No
Number of Hedge Fund Holders: 74
Fair Isaac Corporation (NYSE:FICO) is one of the stocks to invest in before they split next. On September 8, UBS raised the firm’s price target on FICO to $1,590 from $1,540, while keeping a Neutral rating on the shares. In Q3 2025, the company a strong performance driven by its Scores segment. The total revenue for the quarter was $536 million, which was a 20% increase year-over-year.
The company’s performance was largely fueled by its Scores segment, which generated $324 million in revenue and marked a 34% increase year-over-year. The growth was attributed to both B2B and B2C scores, with a 42% increase in B2B revenue due to a higher unit price and increased mortgage origination volume. The Software segment, however, saw more modest growth, with revenues reaching $212 million, a 3% increase.
The company’s platform ARR grew to $254 million, representing 34% of total ARR, and its platform net retention rate was 115%. However, Fair Isaac Corporation anticipates a sequential decline in revenues for Q4 due to lower point-in-time revenues from insurance scores and software licenses. The mortgage market also continues to be affected by elevated interest rates, impacting loan originations.
Fair Isaac Corporation (NYSE:FICO) develops software with analytics and digital decisioning technologies for businesses to automate, enhance, and connect decisions. The company operates in two segments: Scores and Software.
6. ASML Holding (NASDAQ:ASML)
Share Price as of September 11: $804.16
Surge in Share Price in 5 Years: 123.86%
Stock Split Confirmed: No
Number of Hedge Fund Holders: 78
ASML Holding (NASDAQ:ASML) is one of the stocks to invest in before they split next. On September 12, Arete analyst Jim Fontanelli upgraded ASML to Buy from Neutral with an EUR 879 price target. This announcement came prior to the company’s FQ3 2025 earnings report.
Earlier, for its FQ2 2025 financial results, ASML reported total net sales of €7.7 billion. Net system sales were €5.6 billion, which included €2.7 billion from EUV and €2.9 billion from non-EUV systems. Sales from Installed Base Management were €2.1 billion. Net income reached €2.3 billion, or 29.8% of total net sales, which resulted in an EPS of €5.90.
The company’s net system bookings for the quarter totaled €5.5 billion, with €2.3 billion from EUV and €3.2 billion from non-EUV systems. ASML’s backlog remains robust at ~€33 billion. The company also reported €7.2 billion in cash, cash equivalents, and short-term investments. In FQ2, ASML repurchased ~€1.4 billion worth of shares as part of its 2022-2025 share buyback program.
ASML Holding (NASDAQ:ASML) is a tech company that provides lithography solutions for the development, production, marketing, sales, upgrading, and servicing of advanced semiconductor equipment systems.
5. Costco Wholesale Corporation (NASDQ:COST)
Share Price as of September 11: $964.32
Surge in Share Price in 5 Years: 184.35%
Stock Split Confirmed: No
Number of Hedge Fund Holders: 91
Costco Wholesale Corporation (NASDQ:COST) is one of the stocks to invest in before they split next. On September 5, Greg Melich from Evercore ISI kept a Buy rating on Costco, with a price target of $1,060. Evercore ISI’s sentiment was reiterated ahead of Costco’s Q4 2025 earnings report.
In Q3 2025, Costco reported strong growth in both its top and bottom lines. Net sales increased by 8% to $61.96 billion, which was up from $57.39 billion in the prior year. Net income increased by over 13%, rising to $1.9 billion or $4.28 per diluted share, from $1.68 billion or $3.78 per diluted share a year ago. Total company comparable sales were also up 5.7%. In the US, particularly, comparable sales grew by 6.6%, while in Canada, they were up 2.9%.
E-commerce was a standout segment, with comparable sales increasing by 14.8%. Membership fee income for the quarter was $1.24 billion, which was an increase of 10.4% or $117 million year-over-year. The company reported having 79.6 million paid household members, an increase of 6.8%. The number of Executive Memberships grew by 9% to 37.6 million, with Executive Members now accounting for 73.1% of worldwide sales. The US and Canada saw a high renewal rate of 92.7%.
Costco Wholesale Corporation (NASDQ:COST) operates membership warehouses in the US, Puerto Rico, Canada, Mexico, Japan, the UK, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden.
4. Intuit Inc. (NASDAQ:INTU)
Share Price as of September 11: $660.52
Surge in Share Price in 5 Years: 109.69%
Stock Split Confirmed: No
Number of Hedge Fund Holders: 105
Intuit Inc. (NASDAQ:INTU) is one of the stocks to invest in before they split next. On August 25, Mizuho Securities analyst Siti Panigrahi reiterated a Buy rating on Intuit and set a price target of $875.00. Before this sentiment was released, Intuit reported the earnings for its Q4 2025 quarter, as well as the full FY2025.
The company’s total revenue for the fiscal year grew by 16%. In Q4, revenue reached $3.8 billion, which was a 20% increase year-over-year. The Consumer Group revenue particularly grew by 10% for FY2025, with its TurboTax Live service seeing a 47% revenue growth. Credit Karma also had its revenue up 32% for FY025. In Q4, the Global Business Solutions Group’s revenue grew by 18%, and revenue from QuickBooks All-in Accounting grew by 23%. Online Services revenue increased by 19% in the quarter.
The company’s financial position remains solid, with ~$4.6 billion in cash and investments. Despite its strong performance, Intuit acknowledges that it has not factored in any immediate monetization from its new AI agents in its FY2026 guidance, which shows that the full revenue potential of this initiative is yet to be realized.
Intuit Inc. (NASDAQ:INTU) provides financial management, payments & capital, compliance, and marketing products & services in the US. The company operates in 4 segments: Global Business Solutions, Consumer, Credit Karma, and ProTax.
3. Eli Lilly and Company (NYSE:LLY)
Share Price as of September 11: $756.28
Surge in Share Price in 5 Years: 410.69%
Stock Split Confirmed: No
Number of Hedge Fund Holders: 119
Eli Lilly and Company (NYSE:LLY) is one of the stocks to invest in before they split next. On September 9, Eli Lilly and Company launched a new global campaign titled “Brain Health Matters” to encourage people to proactively manage their brain health and reduce the risk of dementia from conditions like Alzheimer’s disease.
The multi-year campaign builds on 35 years of Lilly’s research in brain health and aims to make proactive care a regular part of long-term wellness plans. The campaign is particularly focused on women, who account for ~two-thirds of Alzheimer’s disease diagnoses. To increase awareness, Lilly has partnered with acclaimed actress and advocate Julianne Moore in the US.
Moore portrayed a woman with early-onset Alzheimer’s in her film Still Alice and is encouraging individuals to have early conversations with their doctors about dementia risk, cognitive assessments, and lifelong brain health habits. According to a recent survey, ~four in five Americans would want to know if they have Alzheimer’s disease before symptoms become a daily issue. The campaign emphasizes that Alzheimer’s can begin as early as 20 years before symptoms appear due to the buildup of amyloid plaques in the brain.
Eli Lilly and Company (NYSE:LLY) discovers, develops, and markets human pharmaceuticals in the United States, Europe, China, Japan, and internationally.
2. Netflix Inc. (NASDAQ:NFLX)
Share Price as of September 11: $1,203.50
Surge in Share Price in 5 Years: 149.67%
Stock Split Confirmed: No
Number of Hedge Fund Holders: 133
Netflix Inc. (NASDAQ:NFLX) is one of the stocks to invest in before they split next. On September 10, Netflix announced that its Chief Product Officer, Eunice Kim, will be leaving the company. Her role will be filled on an interim basis by Chief Technology Officer Elizabeth Stone. Kim joined Netflix in 2021 to lead the consumer product innovation team and was named Chief Product Officer in October 2023.
During her tenure, Kim was instrumental in key initiatives that helped grow Netflix’s subscriber base from 200 million to over 300 million members. She spearheaded the launch of the company’s ad-supported plan and oversaw a redesign of the connected-TV interface that was unveiled in May 2025.
As Netflix continues to expand its offerings, including its ad-supported service and new live events like WWE wrestling, it has stated that advertising will not be the primary driver of revenue growth this year. Before her time at Netflix, Eunice Kim held product leadership roles at Google Play and YouTube.
Netflix Inc. (NASDAQ:NFLX) provides entertainment services. The company offers TV series, documentaries, feature films, and games across various genres and languages.
1. Microsoft Corporation (NASDAQ:MSFT)
Share Price as of September 11: $501.01
Surge in Share Price in 5 Years: 145.56%
Stock Split Confirmed: No
Number of Hedge Fund Holders: 294
Microsoft Corporation (NASDAQ:MSFT) is one of the stocks to invest in before they split next. On September 12, the European Commission announced that it accepted Microsoft’s proposed commitments to resolve a long-running antitrust investigation into its Teams messaging and videoconferencing app. The investigation was initiated after a complaint from Slack Technologies and one from German company Alfaview, which accused Microsoft of possibly abusive practices by tying Teams to its Office software suites.
To address these concerns, Microsoft proposed making its Office 365 and Microsoft 365 software packages available at a reduced price without Teams. The company also committed to allowing customers with long-term licenses to switch to these unbundled versions and promised to make it easier for rival software to work with Teams.
These legally binding commitments will remain in force for 7 years, with the interoperability and data portability requirements lasting for 10 years, allowing the company to avoid a potentially massive fine. The decision was made after a market test of the initial proposals conducted in May and June 2025.
Microsoft Corporation (NASDAQ:MSFT) develops and supports software, services, devices, and solutions worldwide.
While we acknowledge the potential of MSFT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSFT and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None.
