3 Stock-Split Stocks to Buy Before They Soar as Much as 215%, According to Select Wall Street Analysts

Over the past few years, there's been a resurgence in the popularity of stock splits. The practice was commonplace in decades past, but had fallen out of favor, only to rebound in recent years. Companies will typically embark on this course after years of strong business and financial results, resulting in a surging stock price.

Evidence suggests that the strong performances that precipitated stock splits tend to continue. Companies that conduct stock splits deliver stock price gains of 25%, on average, in the year following the announcement, compared with average increases of 12% for the S&P 500, according to data compiled by Bank of America analyst Jared Woodard.

Here are three stock-split stocks that still have a long runway ahead, with upside of as much as 215%, according to select Wall Street analysts.

1. Broadcom: Implied upside 36%

The first among our stock-split stocks that represents a compelling opportunity for investors is Broadcom (NASDAQ: AVGO). The company offers a host of software, semiconductor, and security products that run the gamut in the mobile, broadband, cable, and data center spaces.

Indeed, the company reports that "99% of all internet traffic crosses through some type of Broadcom technology." This means that Broadcom's technology will be instrumental in the adoption of artificial intelligence (AI).

The company's recent results are telling. In Broadcom's fiscal third quarter (ended Aug. 4), revenue jumped 47% year over year to $13 billion, driving adjusted earnings per share (EPS) up 18% to $1.24. The company continues to integrate VMWare, which has pressured earnings, but management is expecting a more meaningful contribution in fiscal 2025. Broadcom also increased its full-year revenue guidance to $51.5 billion, which would represent growth of nearly 44%.

The company's track record of solid, consistent growth led to a 10-for-1 stock split in July. The stock has more than tripled since the start of 2023 -- which coincided with the onset of the AI revolution -- but many on Wall Street believe the best is yet to come. Rosenblatt Securities analyst Hans Mosesmann maintains a buy rating on Broadcom stock and a Street-high, split-adjusted price target of $240. This represents potential upside for investors of 36% compared to Friday's closing price.

Mosesmann suggests that management's guidance is conservative, leaving the potential for upside revisions. He sees particular opportunities in Broadcom's application-specific integrated circuits (ASICs) and ancillary products that support networking and switching, which will see increased AI-related demand. He also posits that the integration of VMWare will boost Broadcom's results.