1 Incredible Stock-Split Stock to Buy With $200 Right Now

When a company splits its stock, it doesn't change any of the underlying fundamentals of the business. However, a stock split can be a signal that management believes its performance will remain solid for the foreseeable future. As such, it's worth paying attention to stock splits.

One of the biggest stock splits of 2026 is Booking Holdings (NASDAQ: BKNG). The online travel agency enacted a 25-for-1 stock split earlier this month, the first in the company's history. After the split, shares trade for less than $200 and could be a great addition to any portfolio. Here's why investors should take a closer look at Booking right now.

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Booking's management is focused on improving operations to expand its operating margin, and it's doing an incredible job. Adjusted EBITDA margin expanded to 36.9% in the fourth quarter, up from 35% a year ago. That was driven by about $250 million in savings through its "Transformation Program." Management said it exited the year with $550 million in annual run rate savings, and it expects to maintain that pace in 2026.

But management isn't just letting all those savings flow to the bottom line. It sees a bevy of opportunities for continued growth. Booking plans to invest about $700 million in strategic areas, including generative artificial intelligence (AI) capabilities, its Connected Trip vision, expanding its hotel network in Asia and the U.S., growing its advertising business, and expanding its restaurant reservation platform OpenTable internationally. All of these present great long-term potential growth verticals, with management expecting the efforts to generate $400 million incremental revenue in 2026, bringing the net investment down to $300 million.

Booking's biggest strength is its network of hotels and short-term rentals. It's particularly strong in Europe, where boutique hotels dominate the industry. The industry is nearly as fragmented in Asia, but much less so in the United States, where big hotel chains dominate. Booking provides an essential service to boutique hotels as an aggregator, since most are too small to market themselves effectively. The massive supply side network on Booking's platform attracts travelers looking for European accommodations. Booking can easily copy the playbook in Asia and the U.S., where opportunities remain.

Long-term, Booking aims to be a one-stop shop for travelers via its Connected Trip vision. The company currently counts any booking where a traveler books multiple services through its platform (for example, a hotel and a flight). OpenTable expands its services to include restaurant bookings, it has a growing number of tours and experiences on its platform, and management is making it easier to pay for everything with its payments platform. Management saw high-20% growth in Connected Trips last quarter, but they're still a low-double-digit percentage of total transactions.

Management expects earnings-per-share growth to be in line with its long-term target of 15% this year. With the stock trading for just 17 times forward earnings estimates, that makes the stock-split stock a great opportunity right now.

Adam Levy has positions in Booking Holdings. The Motley Fool has positions in and recommends Booking Holdings. The Motley Fool has a disclosure policy.