2 Stellar Stock-Split Stocks You Should Be Buying Now

Stock splits are worthless on paper. Your $200 stock splits 4-to-1, and you’re handed three extra shares that are now priced at $50 each. It’s still the same pizza, just sliced thinner. Fundamentals don’t budge. Revenue, profits, and debt remain unmoved. So why do companies bother, and why do investors love them? Because they are a neon sign blaring confidence in the business, a bullish vibe that the stock still has room to run. 

Splits scream, “We’re good, and we’re making it easier to grab a piece.” But here’s the thing: a split won’t save a dud. Bad business stays bad, no matter if it is pre-split or post-split. Flashy division doesn’t fix a rotten core.

Last year, stock splits were popular with several high-profile stocks splitting their shares. Broadcom (NASDAQ:AVGO) and Nvidia (NASDAQ:NVDA) both split their shares by a 10-for-1 ratio while Chipotle Mexican Grill (NYSE:CMG) set a new record with a 50-for-1 split.

While these top-shelf stocks are still worth the price of admission, below are a pair of stock-split stocks that are excellent companies to buy now.

Lam Research (LCRX)

Lam Research (NASDAQ:LRCX) is the first stock-split stock you should buy in March. It split its stock 10-for-1 last October, but shares are down 16% year-to-date, though primed to rebound. 

You can blame Micron Technology’s (NYSE:MU) gloomy first-quarter outlook in December where it slashed its outlook for demand for PCs and smartphones, plus the deteriorating trade situation. Yet the dip in LCRX stock is a gift. 

The semiconductor equipment manufacturer’s fundamentals are rock-solid, and the horizon’s bright. Fourth-quarter earnings revenue rose 5% to $4.37 billion, beating Wall Street’s $4.31 billion estimates, while operating margins grew 20 basis points. Adjusted earnings hit $0.91 per share, also topping $0.87 per share forecasts, and proving Lam’s riding the AI and memory waves despite NAND softness. Lam also generated $1.2 billion in free cash flow in the quarter.

Of course, there are risks. China is its largest market, representing 31% of sales, but with tighter export curbs, Lam is expecting a $700 million sales hit for customers it can’t ship to now. NAND spending is also sluggish, but it is expecting sales to rise in 2025. Still its tailwinds will push LCRX stock forward. 

AI chip demand for its 3D DRAM and gate-all-around nodes could push system sales past $3 billion in 2025. And though the Federal Reserve didn’t cut interest rates this month, they could come this summer if inflation rises, helping to juice the tech market. DRAM and foundry revenue also hit a record and Lam’s $10 billion buyback indicates the equipment maker has plenty of cash profits to keep returning value to shareholders.

Tractor Supply (TSCO)

Tractor Supply (NASDAQ:TSCO) is the next stock-split stock to buy with its shares essentially flat in 2025, but loaded with upside potential. Mild winter weather early on dented seasonal sales, off set by record high egg prices in 2024 that encouraged consumers to take up backyard chicken farming. But don’t be a broody hen with this one as it’s ready to take flight from here.

The rural lifestyle retailer has a long track record of navigating economic and market cycles. Because its business is a needs based one, coupled with its understanding of them, it is able to practically adapt to changes. And tariffs shouldn’t be a burden. Only 12% of its sales are direct imports and it has greatly diversified its country of origin for them. Tractor Supply is forecasting sales growth of 5% to 7% in 2025 to reach $15.6 billion to $15.9 billion.

The 5-for-1 stock split, effective December 20, 2024, sliced shares from $290 to $58, broadening its appeal without changing the math.

It does have risks, such as soft commodity prices so margins narrowed, and a rural spending slump could linger if rates stay high. Competition from online pet pharmacies could nibble away at business, too. But it plans to add even more stores this year, adding 90 new locations in 2025, up from 80 in 2024. Digital sales also hit a record, topping $1.1 billion.

At a P/E of 25 — below its five-year average of 28 — TSCO is cheap for 9% EPS growth ahead. Risks aside, its cash flow and rural grip make it a winner.

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