Wall Street's Premier Stock-Split Stocks of 2025 Have Gained Up to 137,000% Since Their IPOs and Show No Signs of Slowing Down

Stock-split euphoria continues to drive investor interest, with companies enacting forward splits historically outperforming the S&P 500 in the 12 months post-announcement, according to a Bank of America study. Three notable companies completed forward splits in 2025: Fastenal (2-for-1), O'Reilly Automotive (15-for-1), and Interactive Brokers Group (4-for-1). These firms, despite current valuations, exhibit robust business models, significant historical growth, and favorable macroeconomic tailwinds, positioning them for continued strong performance and reinforcing the perceived positive signal of forward stock splits.

Analysis

The article highlights a strong positive sentiment surrounding companies executing forward stock splits, citing a Bank of America study that found such firms historically outperform the S&P 500 in the 12 months following the split announcement. This trend is exemplified by three companies that completed splits in 2025: Fastenal (FAST), O'Reilly Automotive (ORLY), and Interactive Brokers (IBKR). Each firm, despite trading at premium valuations, is supported by distinct fundamental strengths and favorable macroeconomic tailwinds. Fastenal's growth is driven by its innovative inventory management solutions and its cyclical exposure to long-term economic expansions. O'Reilly Automotive benefits directly from the record-high average age of U.S. vehicles (12.8 years) and has aggressively enhanced shareholder value through a substantial share repurchase program, buying back 59.4% of its shares since 2011. Interactive Brokers is capitalizing on the current bull market, evidenced by significant year-over-year growth in key metrics, including a 32% rise in customer accounts and a 50% increase in daily active revenue trades. While their valuations are noted as high—Fastenal at 36x 2026 consensus EPS, O'Reilly at 28x forward EPS, and Interactive Brokers at 29x forward earnings—the article frames this as a function of their proven operational success and strong growth outlooks.

Key Decisions for Investors

• Investors should recognize that the forward stock splits by Fastenal, O'Reilly Automotive, and Interactive Brokers are presented as signals of management confidence, underpinned by strong operational execution and favorable long-term macroeconomic trends for each respective industry.
• While the growth narratives are compelling, the noted premium valuations require careful consideration, as they may already price in significant future performance and could present a risk if growth decelerates.
• For O'Reilly Automotive, the aggressive capital return policy, which has retired nearly 60% of outstanding shares since 2011, is a critical component of its value proposition and a key driver of EPS growth that warrants specific attention in any investment thesis.
• Prospective investors in Interactive Brokers should closely monitor its key performance indicators, such as customer account growth and trading volumes, as their durability is essential to justifying its valuation and is highly correlated with broader market sentiment and volatility.