From Nasdaq:

The stock market saw volatility in 2023, with the Dow Jones, S&P 500, and Nasdaq oscillating between bear and bull markets. Investors tend to seek companies with a history of outperformance during volatile times, and stocks enacting splits have fit the bill recently.

A stock split is an event that allows a company to alter its share price and outstanding share count without impacting its market cap or operations. Forward splits make shares more affordable for retail investors, while reverse splits can increase a company’s share price for continued listing on a major stock exchange.

Nine prominent companies completed a forward-stock split since mid-2021. These companies are dominant players with defined competitive advantages, including Nvidia, Amazon, Tesla, and Alphabet.

Out of these companies, Alphabet stands out as the stock to buy in 2024. With significant ad-pricing power and growth opportunities in segments like YouTube and Google Cloud, Alphabet offers sustained double-digit earnings growth potential for the next five years and beyond. The stock can be purchased at a discount to its average cash flow over the past five years.

On the other hand, Tesla is the stock to avoid in 2024 due to several reasons that indicate trouble ahead. Despite being profitable, Tesla’s operating margin has halved, demand for its EVs has declined, and its income sources are unsustainable.

Tesla’s CEO, Elon Musk, has overpromised and underdelivered on numerous innovations, and its efforts to become more than a car company have missed the mark. With a valuation at 65 times consensus earnings in 2024, Tesla’s stock is not likely to hold up in the face of rapidly declining operating margin.

Should you invest $1,000 in Alphabet right now?

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Read more: 1 Stock-Split Stock to Buy Hand Over Fist in 2024 and 1 to Avoid