In the wake of Walmart and Chipotle's recent stock splits, market analysts are speculating whether other top-performing companies will follow suit. Currently, Costco Wholesale and MercadoLibre are two stocks that are being closely watched for potential stock splits.

Stock splits are often seen as indicators of a company's success and management's confidence in its future prospects. Walmart recently completed a 3-for-1 stock split in February, while Chipotle made headlines with a gargantuan 50-for-1 split announcement last week. Both companies have been outperforming the broader market this year.

Costco Wholesale, renowned for its unbeatable membership model, has been a market-beating stock for decades. The company's retail membership model generates customer loyalty, high traffic, and strong sales. Despite sluggish sales growth last year due to reduced purchases of large, expensive items, Costco bounced back in fiscal 2024's second quarter with a 5.9% year-over-year increase in sales. Additionally, its earnings per share rose from $3.30 to $3.92. With renewal rates at sky-high levels and a strong presence in Canada and the U.S., analysts suggest that Costco could potentially split its stock this year. Since its last stock split 24 years ago, Costco's stock has climbed nearly 1,500%, and it has seen a 48% increase in value over the past year.

In a similar vein, MercadoLibre, the leading Latin American e-commerce giant often compared to Amazon, has also caught the attention of investors. The company's e-commerce business has been reporting exceptional growth, with a 79% year-over-year increase in gross merchandise volume (GMV) in the 2023 fourth quarter. Additionally, its fintech segment, focused on digital payments, saw a staggering 153% year-over-year increase in total payment volume (TPV), with off-platform payments surging by 182% in the fourth quarter. This expansion into new businesses, including credit services, has allowed MercadoLibre to remain reliably profitable. While the company has never split its stock since going public in 2007, some market experts believe that hitting the four-digit mark could prompt MercadoLibre to consider a stock split, signaling confidence in its future growth.

Both Costco Wholesale and MercadoLibre have demonstrated resilience in their respective markets and possess strong growth potential moving forward. With the recent success of Walmart and Chipotle's stock splits, it wouldn't be surprising to see other top stocks, such as Costco and MercadoLibre, follow suit. Investors are advised to keep a close eye on these companies as potential opportunities arise.

Disclaimer: The article is based on the mentioned information and does not constitute financial advice. Investors should do their own research and consult with a professional before making any investment decisions.

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