More than 200 stock splits have taken place this year — but not all stock-split stocks are created equally.

Regardless of how long you’ve been putting your money to work on Wall Street, it’s been a rough year. All three of the major U.S. stock indexes have entered a bear market , with the widely followed S&P 500 producing its worst first-half return in 52 years. The icing on the cake is the bond market is having its worst year in history.

But even with this chaos, investors have found a source of optimism with stock-split stocks. Image source: Getty Images. A ” stock split ” is an event that allows a publicly traded company to alter its share price and outstanding share count without impacting its market cap or operations. Forward stock splits, which reduce the share price of a stock to make it more nominally affordable for everyday investors, have been especially popular of late.

More than 200 stock splits have been undertaken this year. But among these numerous splits are a handful of special cases. There are two dirt cheap stock-split stocks that investors are going to regret not buying at their new nominally lower share price, as well as one popular stock-split stock that remains exceptionally pricey and is worth avoiding. Bargain-priced stock-split stock No. 1 you’ll regret not buying: Alphabet

The first dirt cheap stock that investors should be clamoring to buy is Alphabet ( GOOGL 1.16%) ( GOOG 0.95%), the parent company of internet search engine Google, streaming platform YouTube, and autonomous vehicle company Waymo, among other subsidiaries.

Alphabet was the company that effectively kicked off the stock-split bonanza of 2022. In February, its management team announced plans to conduct a 20-for-1 forward stock split, which was eventually approved by shareholders and completed in July. The company whose shares once commanded a $3,000 price tag can be bought for less than $100, as of Oct. 20, 2022.

Though there are clear concerns about advertising spending in a rising-rate environment, Alphabet’s competitive advantages and innovations make it a superstar that should be in most investor’s portfolios. For example, Google has controlled between 91% and 93% of worldwide internet search share for more than two years. With such an insurmountable lead over every one of its competitors, it should come as no surprise that businesses will pay a premium to place their message on Google’s search pages.

However, Alphabet is becoming far more than just an internet search kingpin . YouTube is the second most-visited social site on the planet, leading to an annual ad run-rate of almost $30 billion. There’s also Google Cloud, which has gobbled up an estimated 8% of global cloud-service spending, according to a report by Canalys. These fast-paced segments could easily become Alphabet’s core drivers of operating cash flow growth within a few years.

Investors can buy shares of Alphabet right now for a mere 17 times Wall Street’s forecast earnings for 2023, as well as just 10 times projected cash flow for 2024. Both figures are historically low for a company that can sustain a double-digit growth rate for a long time to come. Bargain-priced stock-split stock No. 2 you’ll regret not buying: Amazon

A second dirt cheap stock-split stock that investors are going to regret not buying — especially with the bear market pummeling retail stocks — is Amazon ( AMZN 3.53%). Amazon completed a 20-for-1 forward stock split in June.

Some investors are, rightly, going to be scratching their heads and wondering how the words “Amazon” and “dirt cheap” can be used in the same sentence. After all, retailers are being battered by historically high inflation and supply chain woes, and Amazon is anything but “cheap” using traditional fundamental metrics like the price-to-earnings (P/E) ratio. But rest assured, if you do some digging into Amazon’s ancillary operations and its cash flow-generating potential, you’ll realize this company is historically inexpensive .

Most people associate Amazon with its dominant online marketplace. According to eMarketer, Amazon is estimated to bring in 39.5% of all U.S. online retail sales this year. But what needs to be understood is that Amazon’s top revenue segment produces some very thin operating margins. It’s far more important that the company’s ancillary operations are thriving — and they are!

Amazon’s marketplace has helped the company sign up more than 200 million members to Prime worldwide, as well as boost its ad revenue. Subscription services and advertising services are each generating in the neighborhood of $35 billion in annual run-rate sales.

Even more important is Amazon Web […]

source 2 Dirt-Cheap Stock-Split Stocks You’ll Regret Not Buying and 1 You’ll Be Glad You Avoided

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