Three Blue-Chip Stocks Showing Bullish Indicators

Blue-Chip Stocks with Upcoming SplitStreaming movie provider Netflix, Inc. (NASDAQ/NFLX) is one of three blue-chip stocks that appear to be in the process of getting ready for a stock split, which is generally a bullish signal. This is a good example of the right moment for an interested investor to get in on a stock like this.

Now, while it’s not uncommon to see extremely high-priced stocks like Netflix, which surged to $677.00 last Wednesday on the stock split speculation, this certainly isn’t always the norm.

Just take a look at Berkshire Hathaway Inc. (NYSE/BRK.A), the holding company managed by famed buy-and-hold investor Warren Buffett. The stock has not undergone a stock split since its infancy and is currently trading at a whopping $211,400—jumping $1,700 last Wednesday. Of course, for those who need to be invested in Buffett, you can do so through the much cheaper “B” shares.

Going back to the case of Netflix, the company increased its share authorization to five billion shares, up from the current 170 million. So, a stock split appears to be on the horizon. Based on the share base, the split could be as high as 30 times, which would give us a post-split share price of about $22.00. Now, I highly doubt the split will be 30-for-1. It will more likely be in the 2-for-1 to as much as the 10-for-1 ratio. The point is: stock splits are generally bullish and result in a higher share price, both prior to and after the split.


Netflix Chart

Chart courtesy of

Apple Inc. (NASDAQ/AAPL) initiated a 10-for-1 stock split after the stock traded at over $700.00. The maker of the iPhone is now trading at nearly $130.00 ($1,300 pre-split), nearly doubling in price since the split.

Starbucks Corporation (NASDAQ/SBUX) also had a recent split at $95.00, trading up around $10.00 to the current $105.00 since the split.

The objective of stock splits is to increase the market liquidity for the stock. In many cases, this will also help to drive up the share price.

Watch Split Speculation on These Blue-Chip Stocks

While Netflix advanced about $24.00 after the approval for more shares, there are likely upside moves to be made once the shares are split and the price comes down to the masses.

Some research shows there are other candidates that could eventually undergo a stock split based on an extremely high share price.

At the top of my list is Chipotle Mexican Grill, Inc. (NYSE/CMG), which traded at $727.00 on January 8, 2015, prior to retrenching down to the current $608.00.

Chipotle Mexican Grill Chart

Chart courtesy of

I have long liked Chipotle; since the stock plummeted to the mid-$200.00 level in October 2013. With additional price weakness, I see opportunities to accumulate, as the stock could see a split on upward moves back to its high.

A second candidate for a stock split is high-flying online travel operator The Priceline Group Inc. (NASDAQ/PCLN), which is the best of breed in its segment.

The Priceline Group Chart

Chart courtesy of

Trading at a whopping $1,180, having been as high as $1,329 in August, the stock is likely due for a split just like Google Inc. (NASDAQ/GOOG) did after it traded above $1,000.