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One Upcoming Stock Split Flying Under Investors' Radars
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Stock splits have gained serious traction over the last several years. Fortunately, it’s one of the more positive announcements that shareholders can receive.
Of course, a stock split doesn’t affect a company’s market capitalization. However, it lowers the value of each individual share, providing ease for the stock price to multiply once again and provide investors with sizable gains.
So far in 2022, we’ve witnessed several market titans undergo a stock split, including Amazon (AMZN - Free Report) and Alphabet (GOOGL - Free Report) .
However, one company with an upcoming stock split that’s seemingly flying under the radar is Nintendo (NTDOY - Free Report) . The company is undergoing a 10-for-1 stock split at the beginning of October.
Let’s take a closer look at the gaming giant.
Nintendo
Nintendo (NTDOY - Free Report) is a worldwide leader in game development and publishing. Some of its beloved game franchises include familiar names such as Donkey Kong, Pokémon, The Legend of Zelda, and Super Mario Brothers.
Below is a chart illustrating the company’s share performance year-to-date compared to the S&P 500.
Image Source: Zacks Investment Research
As we can see, NTDOY shares have displayed a much higher level of defense in 2022 than the S&P 500 has, signaling that buyers have defended the stock at a higher level than most.
In addition, Nintendo shares trade at solid valuation levels – the company’s 15.5X forward earnings multiple is well beneath its five-year median of 20.2X and represents a steep 28% discount relative to its Zacks Consumer Discretionary Sector.
Image Source: Zacks Investment Research
Impressively, Nintendo has been on a blazing hot earnings streak – the company has exceeded the Zacks Consensus EPS Estimate in 11 consecutive quarters. Just in its latest print, NTDOY penciled in a sizable 36% bottom-line beat.
Top-line results have also been rock-solid, with the company recording eight top-line beats over its last ten quarters. Below is a chart illustrating NTDOY’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
NTDOY’s dividend metrics are also worth a highlight. The company’s annual dividend yields a sizable 3.8%, much higher than that of the S&P 500.
Additionally, the company has increased its dividend seven times over the last five years and carries a five-year annualized dividend growth rate of a steep 37%.
Image Source: Zacks Investment Research
Now, let’s take a look at Amazon’s and Alphabet’s recent splits.
Alphabet & Amazon
It goes without saying that GOOGL and AMZN shares have been two stellar places to park cash over the years, providing investors with unbelievable gains.
Below is a five-year chart illustrating the share performance of both companies with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
However, the immense popularity that Alphabet and Amazon have gained within the market caused both stock prices to climb rapidly, creating a steep barrier of entry for potential investors. Noticing this issue, both companies decided to combat the problem via stock splits.
Amazon announced its 20-for-1 split back in early March, representing the company’s first split since 1999. Needless to say, it shocked the market.
Following the announcement, AMZN shares found many buyers. The split went into effect a few months later, on June 6th. And since then, AMZN shares have posted market-beating returns, as illustrated in the chart below.
Image Source: Zacks Investment Research
Back in February, Alphabet announced its plans to split its stock 20-for-1. Like AMZN, buyers came out in full force for GOOGL shares out of the gate.
Alphabet shares started trading on a split-adjusted basis on July 18th. Since then, the share performance has been strong but has still lagged the general market.
Image Source: Zacks Investment Research
Bottom Line
There have been several notable stock splits in 2022 so far, including market titans Alphabet (GOOGL - Free Report) and Amazon (AMZN - Free Report) . With these two powerhouses performing splits, much of the attention has been focused on them.
However, a stock split that’s seemingly flying under the radar is Nintendo’s (NTDOY - Free Report) upcoming 10-for-1 split slated to take place in early October.
The split will undoubtedly increase the overall trading volume of NTDOY shares, providing more liquidity.
Nintendo has consistently exceeded quarterly estimates, shares trade at enticing levels, and the company has a track record of rewarding its shareholders handsomely with its market-beating dividend yield.
For these reasons, the upcoming stock split should definitely be on investors' calendars.
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One Upcoming Stock Split Flying Under Investors' Radars
Stock splits have gained serious traction over the last several years. Fortunately, it’s one of the more positive announcements that shareholders can receive.
Of course, a stock split doesn’t affect a company’s market capitalization. However, it lowers the value of each individual share, providing ease for the stock price to multiply once again and provide investors with sizable gains.
So far in 2022, we’ve witnessed several market titans undergo a stock split, including Amazon (AMZN - Free Report) and Alphabet (GOOGL - Free Report) .
However, one company with an upcoming stock split that’s seemingly flying under the radar is Nintendo (NTDOY - Free Report) . The company is undergoing a 10-for-1 stock split at the beginning of October.
Let’s take a closer look at the gaming giant.
Nintendo
Nintendo (NTDOY - Free Report) is a worldwide leader in game development and publishing. Some of its beloved game franchises include familiar names such as Donkey Kong, Pokémon, The Legend of Zelda, and Super Mario Brothers.
Below is a chart illustrating the company’s share performance year-to-date compared to the S&P 500.
Image Source: Zacks Investment Research
As we can see, NTDOY shares have displayed a much higher level of defense in 2022 than the S&P 500 has, signaling that buyers have defended the stock at a higher level than most.
In addition, Nintendo shares trade at solid valuation levels – the company’s 15.5X forward earnings multiple is well beneath its five-year median of 20.2X and represents a steep 28% discount relative to its Zacks Consumer Discretionary Sector.
Image Source: Zacks Investment Research
Impressively, Nintendo has been on a blazing hot earnings streak – the company has exceeded the Zacks Consensus EPS Estimate in 11 consecutive quarters. Just in its latest print, NTDOY penciled in a sizable 36% bottom-line beat.
Top-line results have also been rock-solid, with the company recording eight top-line beats over its last ten quarters. Below is a chart illustrating NTDOY’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
NTDOY’s dividend metrics are also worth a highlight. The company’s annual dividend yields a sizable 3.8%, much higher than that of the S&P 500.
Additionally, the company has increased its dividend seven times over the last five years and carries a five-year annualized dividend growth rate of a steep 37%.
Image Source: Zacks Investment Research
Now, let’s take a look at Amazon’s and Alphabet’s recent splits.
Alphabet & Amazon
It goes without saying that GOOGL and AMZN shares have been two stellar places to park cash over the years, providing investors with unbelievable gains.
Below is a five-year chart illustrating the share performance of both companies with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
However, the immense popularity that Alphabet and Amazon have gained within the market caused both stock prices to climb rapidly, creating a steep barrier of entry for potential investors. Noticing this issue, both companies decided to combat the problem via stock splits.
Amazon announced its 20-for-1 split back in early March, representing the company’s first split since 1999. Needless to say, it shocked the market.
Following the announcement, AMZN shares found many buyers. The split went into effect a few months later, on June 6th. And since then, AMZN shares have posted market-beating returns, as illustrated in the chart below.
Image Source: Zacks Investment Research
Back in February, Alphabet announced its plans to split its stock 20-for-1. Like AMZN, buyers came out in full force for GOOGL shares out of the gate.
Alphabet shares started trading on a split-adjusted basis on July 18th. Since then, the share performance has been strong but has still lagged the general market.
Image Source: Zacks Investment Research
Bottom Line
There have been several notable stock splits in 2022 so far, including market titans Alphabet (GOOGL - Free Report) and Amazon (AMZN - Free Report) . With these two powerhouses performing splits, much of the attention has been focused on them.
However, a stock split that’s seemingly flying under the radar is Nintendo’s (NTDOY - Free Report) upcoming 10-for-1 split slated to take place in early October.
The split will undoubtedly increase the overall trading volume of NTDOY shares, providing more liquidity.
Nintendo has consistently exceeded quarterly estimates, shares trade at enticing levels, and the company has a track record of rewarding its shareholders handsomely with its market-beating dividend yield.
For these reasons, the upcoming stock split should definitely be on investors' calendars.