Stocks splits are usually bullish. Here are 8 expensive stocks that could get a boost by following Nvidia’s 10-for-1 move.

NYSE trader — Spencer Platt/Getty Images

Nvidia is the 8th company this year to announce a forward stock split.
Stock splits have no impact on the market value of a company, but they are historically bullish, according to Bank of America.
These are eight high-priced S&P 500 stocks that could be the next to enact a split.

Nvidia last week became the eighth company this year to enact a forward stock split, following the footsteps of mega corporations Walmart in January and Chipotle in March.

The company will give its investors nine additional shares for every share they own, and it’s stock price will trade at just above $100 per share from its current price of more than $1,000 when its split goes into effect on June 10.

While stock splits have no impact on the underlying fundamentals of a company, nor do they impact a company’s market value, they are a historically bullish signal, according to an analysis from Bank of America.

“Average returns one year later are 25% vs. around 12% for the broad market. Splits seem to be bullish across market regimes, something management teams might consider if shares look too expensive for buybacks,” Bank of America said in a note on Thursday.

Stock splits are bullish — Bank of America

Forward stock splits are ultimately a sign of strength, as the company’s rising stock price often reflects the growing profits of the underlying business.

A big reason why companies enact stock splits is that high stock prices can make investing in the company inaccessible to employees and retail investors, which is the main reason Walmart and Nvidia cited in their decision to enact a stock split.

“Splits do not affect company fundamentals but can increase liquidity by making shares more accessible,” Bank of America said.

Bank of America said there are about 36 companies in the S&P 500 index with a combined market value of $7.4 trillion are ripe for stock splits, with their stock prices above $500 per share.

Meanwhile, there are eight S&P 500 companies that are even more likely to split their stock, with a current share price of more than $1,000 per share.

8. Deckers Outdoor