2 Post-Split Stocks to Buy Hand Over Fist in March

Stock splits make high-priced, sought-after stocks a lower entry point for retail investors. In addition, according to Bank of America analysts, stock splits are typically bullish for companies that enact them. And, on average, returns after a one-year post-split is 25%, compared to around 12% for the broader market, as noted by Investing.com.

Key Points About This Article

• Stock splits make high-priced, sought-after stocks far cheaper for retail investors who may have missed out on the prior run.
• In October, Super Micro Computer (SMCI) split its shares 10-for-1 to help make the stock more affordable to retail investors. In addition, the company’s latest US SEC filing helped reduce the uncertainty from Hindenburg Research claims.
• Arista Networks split its stock 4:1 in December 2024, making it more attractive.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

“Splits seem to be bullish across market regimes, something management teams might consider if shares look too expensive for buybacks,’ they added.

That being said, investors may want to take advantage of these two post-split stocks.

Super Micro Computer

In October, Super Micro Computer (NASDAQ:SMCI) split its shares 10-for-1 to help make the stock more affordable to retail investors. In addition, the company’s latest US SEC filing helped reduce the uncertainty from Hindenburg Research claims.

All of which helped bring back institutional and retail interest. Analysts also resumed coverage with Barclays, for example, out with a $58 price target on SMCI with an equal weight rating. Loop Capital also raised its price target to $70 with a buy rating.

Also, as noted by Investing.com, SMCI recently became “SEC filing current, which is considered a special situation catalyst. Additionally, the company is expected to see growth from its GB200 and GB300 (Blackwell) product lines as they ramp up heading into the summer season.”

Arista Networks

Arista Networks (NYSE:ANET) split its stock 4:1 in December 2024.

Shortly after the split, ANET ran from about $105 to a high of $133.57. Now back to $87.50, it’s still an attractive opportunity for a few key reasons.

One, analysts at UBS just upgraded ANET to a buy rating with a price target of $115 a share.

“Our upgrade is supported by our view that investments in data center (capital expenditures) will remain strong growing at ~a 25% CAGR through 2027,” said the firm, as quoted by CNBC. “In addition, an acceleration in key Arista metrics including ‘purchase commitments’, deferred revenue’, and ‘finished goods inventory’ last quarter provides revenue recognition support that the company’s CY25 revenue guidance of 17% is overly conservative relative to our 19% forecast and analysis that suggests growth could approach 25%.”

Plus, recent earnings and guidance were strong.+

EPS of 65 cents beat by eight cents. Revenue of $1.93 billion, up 25.3% year over year, beat expectations by $30 million. Analysts were looking for EPS of 57 cents on revenue of $1.9 billion. Arista expects first-quarter revenue to be between $1.93 billion and $1.97 billion, with a midpoint of $1.95 billion. That’s above estimates of $1.91 billion. 

We also have to consider that Arista Networks is still riding the artificial intelligence wave. In fact, according to a Baron Opportunity Fund Q4 2024 shareholder letter on ANET, as quoted by Seeking Alpha:

“Arista, as the leading systems provider for complex networking workloads in traditional data centers at Microsoft and Meta, is well positioned to capitalize on this transition. Furthermore, as AI clusters expand, the complexity and dollar intensity of networking grows non-linearly, implying faster growth than compute components.”

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