Sports-minded investors may be getting ready to watch their favorite team play in the “Big Dance” which is March Madness. But there are some stocks making investors dance for madness of a different kind.
Investors who own Nvidia (NASDAQ:NVDA) know that madness refers to the booming demand for artificial intelligence (AI). Since the words Chat GPT became a household name one year ago, NVDA stock is up 236%, and several analysts have price targets of $1,000 or higher.
That’s one example of AI stocks making investors dance for joy. There are others, including the one you’ll read about here. But, you can find market-beating stocks in other sectors. As you’ll see, one of them just became more accessible for retail investors. And the last stock on this list may have a similar decision to make in a few years if the stock stays on its current trajectory.
Chipotle Mexican Grill (CMG)
Can I interest you in a 50-for-1 stock split? On March 19, 2024, the Chipotle Mexican Grill (NYSE:CMG) Board of Directors approved a 50-for-1 stock split. The split still must be approved by shareholders. That vote won’t happen until June. The record date is June 19, 2024. Pending shareholder approval, shareholders of record on that date will receive 49 additional shares for each share they hold.
This is the first time in the company’s history that it has split its stock. In making the announcement, Chief Financial Officer (CFO) Jack Hartung said the decision was made to make the stock more accessible to employees as well as a wider group of retail investors.
The move has been rumored for a while as the company’s stock price has soar to over $2,700 a share on continued revenue and earnings growth. CMG stock is up 72% in the last 12 months and 21% in 2024.
Palantir Technologies (PLTR)
It may not be every investor’s cup of tea, but Palantir Technologies (NYSE:PLTR) is another stock making investors dance with joy. That’s particularly true for shareholders who have been with the stock since shortly after it went public in 2020.
PLTR stock is up more than 200% in the last 12 months for several reasons. The most significant reason is the company’s AI platform, AIP. Dan Ives of Wedbush has called Palantir the “Lionel Messi of AI.” Ives is still bullish on PLTR stock, recently giving it a price target of $35. That would be a 47% additional gain from the stock’s closing price on March 19, 2024.
Love it or hate it, there’s no denying that the company is stacking wins in the AI market. And if that market grows to approximately $1.8 trillion by 2030 as some analysts expect, Palantir will be a force for years to come.
Lululemon Athletica (LULU)
Lululemon Athletica (NASDAQ:LULU) has been making investors dance with joy for a long time. The stock is up approximately 3,200% since it made its stock market debut in 2007. And that includes a 2-for-1 stock split back in 2011.
Could the company be headed for another split? It likely won’t be anytime soon. Volume remains strong and consistent, and investors are still bullish on the athleisure company. The company has aggressive plans which include doubling its men’s business and expanding into international markets.
LULU stock is down over 8% in 2024, but that’s not surprising. The company has a premium valuation of over 37x earnings. The stock hit an all-time high of $516.39 in late December. It’s only natural that some profit taking would occur. However, the company’s earnings report on March 21, 2024 is likely to provide the fuel for the stock to claim a new all-time high.
On the date of publication, Chris Markoch had a LONG position in PLTR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.