From Nasdaq: 2024-05-29 04:00:00

Nvidia plans a 10-for-1 stock split, set for June 7, 2024, surpassing Chipotle’s 50-for-1 split on June 26, 2024. Nvidia’s shares rose 125% this year compared to Chipotle’s 35%. Which is the better stock-split buy now?

Stock splits may not impact the stock’s underlying value. Nvidia boasts a Q1 revenue of $26B, 262% growth YoY, and a profit of $15B, up 628%. Chipotle’s Q1 revenue hit $2.7B, a 14.1% YoY increase, with earnings rising 13.3% to $359.3M.

Nvidia’s growth prospects are more favorable, with expected earnings growth of 43% annually, compared to Chipotle’s 22%. Nvidia’s valuation with a PEG ratio of 1.35 is more attractive than Chipotle’s 2.72. Nvidia also pays a dividend, making it the better stock-split buy.

Consider other factors before investing in Nvidia, as it was not included in the Motley Fool’s list of 10 best stocks to buy now. Stock Advisor has consistently outperformed the S&P 500 since 2002, providing valuable insights and stock picks. The decision to purchase Nvidia should be based on a comprehensive assessment of potential returns and long-term growth.



Read more at Nasdaq: Better Stock-Split Buy: Nvidia or Chipotle?