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5 Stocks to Invest In Before They Split Next

In this article, we will take a look at the 5 Stocks to Invest in Before They Split Next. For a deeper discussion and an expanded list, please see 9 Stocks to Invest In Before They Split Next.

5. Costco Wholesale Corporation (NASDAQ:COST)

Costco Wholesale Corporation (NASDAQ:COST) ranks among the stocks to invest in before they split next. Costco Wholesale Corporation (NASDAQ:COST) has split its shares three times in its history: 2-for-1 in 1991, 3-for-2 in 1992, and 2-for-1 in 2000. Based on the current pricing, the market is speculating whether Costco Wholesale Corporation (NASDAQ:COST) may split its stock in order to lower the price and attract more retail investors.

Niloo / Shutterstock.com

On April 16, Mizuho Financial Group boosted its price target for Costco Wholesale Corporation (NASDAQ:COST) to $1,100 from $1,065 while keeping an Outperform rating, citing sustained operational performance. Costco’s fuel business has been a key driver of recent improvement, with March volumes increasing considerably.

Fuel sales, along with a roughly 20% increase in average selling prices, contributed approximately 250 basis points to U.S. comparable sales growth. If fuel costs remain high, this tailwind may continue into the coming quarters, leading to possible year-over-year price gains of 30% or more.

That said, the firm warned that adding low-margin gas revenues would likely reduce the composite gross margin rate by roughly 20 basis points, excluding membership fees, in line with previous examples. However, Mizuho added that the fuel trends do not affect its bullish outlook on the shares and advised investors to hold long.

A membership-based warehouse club, Costco Wholesale Corporation (NASDAQ:COST), offers bulk discounts on an array of products, including food, electronics, and household products.

4. Caterpillar Inc. (NYSE:CAT)

Caterpillar Inc. (NYSE:CAT) ranks among the stocks to invest in before they split next. Notably, Caterpillar Inc. (NYSE:CAT) has a history of rewarding shareholders through stock splits, having split its stock several times throughout the decades, the most recent in 2005.

On April 24, BofA Securities boosted Caterpillar Inc. (NYSE:CAT)’s price target to $930 from $825, maintaining a Buy rating on the company’s shares. According to analyst Michael Feniger, Caterpillar’s Power & Energy arm, which accounts for roughly 40% of revenues, is attracting substantial investor focus given its growth potential in the power sector, which includes engines and generators for data centers.

According to BofA Securities, there are indications that Caterpillar’s energy division may see growth in 2027. The firm stated that Caterpillar’s oil and gas portfolio might experience a comeback that year, albeit acknowledging some short-term risk to mining and excavation sales.

Meanwhile, on April 8, Freedom Broker boosted Caterpillar Inc. (NYSE:CAT)’s price objective to $710 from $700, retaining a Hold rating on the stock. Analyst Sergey Glinyanov stated that the firm remains favorable on Caterpillar Inc. (NYSE:CAT) going into 2026, adding that a recent conversation with management confirms the belief that the near-term environment may be more supportive than the market thinks.

Caterpillar Inc. (NYSE:CAT) is a l‍eading gl‌obal p‌roducer of heavy machinery, manufacturing equipment used in construction and mining, along with di⁠esel and natural gas en‍gines, industrial gas turbi‌n⁠es, and diesel⁠- electric locomotives.

3. Eli Lilly & Company (NYSE:LLY)

Eli Lilly & Company (NYSE:LLY) ranks among the stocks to invest in before they split next. Truist Securities restated its Buy rating and $1,281 price target for Eli Lilly & Company (NYSE:LLY) shares on April 17, following encouraging Phase 3 trial outcomes for Foundayo in type 2 diabetes. Eli Lilly & Company (NYSE:LLY) reported the results of ACHIEVE-4, a 52-week non-inferiority trial that evaluated Foundayo in over 2,700 type 2 diabetes patients from 15 countries. The trial met its primary goal, showing no inferiority to insulin glargine in terms of significant cardiovascular complications.

Compared to insulin glargine, Foundayo had a 57% decreased risk of all-cause death. According to Eli Lilly & Company (NYSE:LLY), the Phase 3 program, which now consists of seven Phase 3 studies and over 11,000 patients, has not yet shown any liver safety indications for the medication.

By the end of the second quarter of 2026, the company intends to submit Foundayo for type 2 diabetes approval in the US. In order to assess an unexpected significant risk for major adverse cardiovascular events and drug-associated liver disease, the FDA has already asked for more post-marketing research.

Eli Lilly & Company (NYSE:LLY) is a major global pharmaceutical company that develops, manufactures, and distributes a wide range of drugs. Founded in 1876, it has grown to become one of the world’s largest pharmaceutical companies.

2. ASML Holding N.V. (NASDAQ:ASML)

ASML Holding N.V. (NASDAQ:ASML) ranks among the stocks to invest in before they split next. Following the Dutch chipmaker’s better-than-expected first-quarter results on April 15 and improved full-year outlook, Wall Street analysts increased their price estimates for ASML Holding N.V. (NASDAQ:ASML). Both UBS and Deutsche Bank analysts reaffirmed their Buy ratings and increased their price targets from €1,500 to €1,600.

ASML Holding N.V. (NASDAQ:ASML) raised its fiscal 2026 revenue growth target to 10-22% year-over-year, rising from a previous range of 4-19%, citing higher-than-expected interest in immersion lithography equipment, particularly advanced logic and memory chipmakers.

The significance of the 2027 guidance was emphasized by Deutsche analyst Robert Sanders, who said it gave investors “confidence in the strong growth story.” Meanwhile, UBS, citing greater capacity from the next-generation EUV F platform coming that year, predicts 75 low-NA EUV shipments in 2027, slightly lower than what investors typically anticipate.

Looking forward, the analysts cited High NA EUV capabilities as another possible catalyst. They stated that orders for High-NA equipment would need to be placed in the latter half of 2026 to allow for installation by 2028 for large-scale production.

A key player in the semiconductor sector, ASML Holding N.V. (NASDAQ:ASML) specializes in lithographic systems that use light to etch intricate designs on silicon wafers, a crucial stage in chip production.

1. Meta Platforms, Inc. (NASDAQ:META)

Meta Platforms, Inc. (NASDAQ:META) ranks among the stocks to invest in before they split next. On April 23, Guggenheim reaffirmed its Buy rating and $850 price target for Meta Platforms, Inc. (NASDAQ:META), citing strong ad revenue growth and AI developments. Guggenheim anticipates revenue growth of more than 23% in each quarter through 2026, driven by performance enhancements, advertiser preference, and an increase in impressions on video platforms. The firm said that Meta’s 2026 capital expenditure projection of $115 billion to $135 billion implies a 73% increase over the previous year at the midpoint.

Meanwhile, on April 16, TD Cowen restated its Buy rating and $820 price target for Meta Platforms, Inc. (NASDAQ:META). The firm anticipates increasing advertising growth, as well as reduced margins due to artificial intelligence spending. For Meta’s first-quarter 2026 revenue and operating income, TD Cowen’s projections are 1% and 6% higher than consensus, respectively.

According to TD Cowen, operating margins will contract due to increased AI spending, while revenue growth will accelerate in the fourth quarter due to AI-powered engagement and monetization benefits.

Meta Platforms, Inc. (NASDAQ:META) is a California-based company that develops social media applications, such as Facebook and Instagram. Dedicated to connecting people and growing businesses, the company has two segments: Family of Apps (FoA) and Reality Labs (RL).

While we acknowledge the potential of META 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 META and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: Starter Stock Portfolio: 14 Safe Stocks to Buy Now and 40 Most Popular Stocks Among Hedge Funds Heading Into 2026.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

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We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

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