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

Key Points

• Stock-split euphoria has taken over Wall Street in recent years.

• Businesses enacting forward splits have, on average, consistently outperformed the benchmark S&P 500 in the 12 months following their initial split announcement.

• Though 2025's stock-split stocks aren't cheap, all three magnificent businesses have the puzzle pieces in place to continue rewarding their patient shareholders.

• 10 stocks we like better than Fastenal ›

For more than three decades, investors have pretty consistently had a next-big-thing trend or game-changing innovation to captivate their attention. In rare instances, more than one hit trend can exist on Wall Street at the same time.

While nothing has surpassed the addressable market potential of the artificial intelligence (AI) revolution, excitement surrounding stock splits has clocked in as another key trend for investors.

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A stock split is a tool publicly traded companies have at their disposal to cosmetically adjust their share price and outstanding share count by the same factor. These changes are surface-scratching in the sense that they have no impact on a company's market cap or its operating performance.

Image source: Getty Images.

Though a stock split can increase or decrease a company's share price, investors often have very different reactions to these two possible outcomes.

For instance, investors tend to avoid businesses completing reverse splits, which are designed to increase a company's share price. Most reverse splits are conducted by struggling businesses that are attempting to avoid delisting from a major U.S. stock exchange.

On the other hand, forward stock splits act as something of a beacon for investors. Companies that need to make their share price more nominally affordable for everyday investors are often out-innovating their competition and firing on an all cylinders from an operating standpoint.

Furthermore, a Bank of America Global Research study found that, since 1980, companies enacting forward splits have handily outperformed the broad-based S&P 500 in the 12 months following their initial stock-split announcement.

Three premier stock splits have taken place in 2025 from businesses that have gained up to 137,000% since their respective initial public offerings (IPOs), not including dividends -- and all three of these sensational stock-split stocks have shown no signs of slowing down.

Fastenal: 2-for-1 forward split

The first stock-split of 2025 is no stranger to making its shares more nominally affordable for everyday investors. Wholesale industrial and construction supplies company Fastenal (NASDAQ: FAST) completed a 2-for-1 forward split after the close of trading on May 21, which marked the ninth time it's executed a forward split since its IPO in August 1987. Shares of Fastenal have climbed by almost 137,000% since its IPO, which is why nine stock splits have been necessary.

Fastenal needing to undertake nine stock splits in 38 years reflects its success in becoming a key player in industrial supply chains. In particular, Fastenal's internet-connected vending machines and inventory bins have helped it generate instant revenue, as well as gain a better understanding of its clients' supply chain needs. This means Fastenal can help its top clients save money, while also increasing its own sales and margins.

Additionally, Fastenal continues to benefit from the disproportionate nature of economic cycles. This is a roundabout way of saying that it's a cyclical business which ebbs and flows with the health of the U.S. and global economy.

Since the end of World War II, the U.S. has worked its way through a dozen recessions. On average, the typical downturn has endured just 10 months, with none surpassing 18 months in length. In comparison, the average economic expansion has endured for around five years. As the U.S. economy grows, so does Fastenal's opportunity to expand its sales and further entrench its long-standing business relationships with key players in the industrial and construction arenas.

Though Fastenal stock isn't cheap at 36 times consensus earnings per share (EPS) for 2026, its high-single-digit sales growth is impressive for a non-tech stock of its size ($50 billion market cap). As higher-margin managed inventory solutions grow into a larger percentage of net sales, Fastenal stock should be able to motor even higher.

Image source: Getty Images.

O'Reilly Automotive: 15-for-1 forward split

A second premier stock-split stock that shows no evidence of slowing down is auto parts supplier O'Reilly Automotive (NASDAQ: ORLY). When trading wrapped up on June 9, O'Reilly completed its largest forward split (15-for-1) since its April 1993 IPO. O'Reilly has needed four stock splits in 32 years thanks to a cumulative gain in its share price of nearly 56,300%.

Similar to Fastenal, there are positive macro factors at play for O'Reilly Automotive. A recently released report from S&P Global Mobility shows the average age of cars and light trucks on U.S. roadways rose to an all-time high of 12.8 years in 2025. Higher auto loan interest rates, the implementation of auto tariffs by President Donald Trump, and better-built vehicles are incenting drivers to hang onto their cars and light trucks for longer than ever before. This is great news for O'Reilly Automotive, which is being relied on by drivers and mechanics to keep these vehicles in excellent working order.

A more company-specific differentiating factor for O'Reilly is its unique hub-and-spoke distribution system. It closed out 2024 with 31 regional distribution centers, close to 400 hub stores, and well over 6,000 retail locations. The hub-and-spoke model ensures that over 153,000 items can be in the hands of customers on a same-day or overnight basis.

But it can be argued that the best aspect of O'Reilly Automotive stock is its aggressive share-repurchase program. Almost $26 billion has been spent to buy back 59.4% of O'Reilly's outstanding shares since this repurchase program was commenced in 2011. For businesses with steady or growing net income, buybacks provide a lift to EPS.

Even though O'Reilly Automotive shares are valued at a bit of a premium (28 times forward-year EPS), the puzzle pieces are perfectly in place for this stock to thrive over the long run.

Interactive Brokers Group: 4-for-1 forward split

The third magnificent stock-split stock that's shown no signs of letting its foot off the accelerator for patient, long-term shareholders is automated electronic brokerage firm Interactive Brokers Group (NASDAQ: IBKR). Unlike Fastenal and O'Reilly Automotive, the 4-for-1 split Interactive Brokers effected after the close of trading on June 17 was its first split since becoming a public company.

Since its IPO in May 2007, shares of Interactive Brokers have risen by roughly 610%. Though it's a far cry from the jaw-dropping returns delivered by Fastenal and O'Reilly, Interactive Brokers has still managed to effectively double-up the return of the benchmark S&P 500 in 18 years.

To keep with the theme, macro factors are generally good news for Wall Street's premier stock-split stocks of 2025. Based on data from Bespoke Investment Group, the average S&P 500 bear market from the start of the Great Depression in September 1929 to June 2023 lasted just 286 calendar days, or roughly 9.5 months. In comparison, the typical S&P 500 bull market spanning this 94-year period endured for 1,011 calendar days. With the stock market spending a disproportionate amount of time climbing, investors have had plenty of reason to put their money to work in the market and trade more often.

Wall Street's major stock indexes are all firmly in a bull market, and Interactive Brokers has seen all of its key performance indicators (KPIs) expand by a double-digit percentage on a year-over-year basis. Through March, the number of customer accounts jumped 32% to 3.62 million from the prior-year period, margin loans climbed 24% to $63.7 billion, and daily active revenue trades increased 50% to 3.52 million. In short, Interactive Brokers has more customers, more equity on its platform, and they're, collectively, more willing to trade and borrow money.

Interactive Brokers' stock isn't cheap at 29 times forward-year earnings. But with double-digit growth for all of its KPIs, coupled with the nonlinearity of bull and bear market cycles, its stock appears well-positioned to climb over the long term.

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Bank of America is an advertising partner of Motley Fool Money. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Bank of America and Interactive Brokers Group. The Motley Fool recommends the following options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy.