Core Viewpoint - The article discusses potential candidates for stock splits in 2026, highlighting companies with high share prices and strong financial performance that may consider splitting their stocks to enhance accessibility for retail investors [1]. Group 1: Potential Stock Split Candidates - **MercadoLibre (MELI)**: Currently trading at approximately $1,997, it is the highest-priced major growth stock without a split history. The company reported Q3 2025 revenue of $7.41 billion, a 39% year-over-year increase, with total payment volume up 41% to $71.2 billion. Its stock has appreciated 1,910% over the past decade, making it a strong candidate for a split [1]. - **AutoZone (AZO)**: Trading near $3,745, AutoZone has not split its stock in over 30 years. The company generated $6.24 billion in Q4 2025 revenue and repurchased 117,000 shares for $446.7 million. The stock has surged 390% over the past decade, and its high price may eventually lead to a reconsideration of its split policy [1]. - **Costco (COST)**: Currently trading near $988, Costco has not split its stock since 2000. The company reported Q1 FY2026 revenue of $67.31 billion, with comparable sales up 6.4%. The stock has climbed 681% over the past decade, suggesting that management may consider a split as it approaches four-digit territory [1]. - **Meta Platforms (META)**: Trading at around $645, Meta has never split its stock despite a market cap of $1.63 trillion. The company reported Q4 2025 revenue of $59.89 billion, a 23.78% year-over-year increase. With significant share buybacks and strong financial performance, Meta has the flexibility to execute a split [1]. - **Microsoft (MSFT)**: Trading at approximately $398, Microsoft has not split its stock since February 2003. The company reported Q2 FY2026 revenue of $81.27 billion, up 16.72% year-over-year. With a market cap of $2.96 trillion and a stock price increase of 759% over the past decade, Microsoft may consider a split as analyst targets suggest further upside [1]. Group 2: Characteristics of Split Candidates - The five companies mentioned share common characteristics that typically precede stock splits: elevated share prices that create accessibility barriers, strong financial performance supporting continued appreciation, and large market capitalizations providing operational flexibility [1]. - While stock splits do not alter the fundamental value of a company, they can broaden the investor base and improve trading liquidity, which may encourage management teams to consider splits as a means to maintain retail investor participation in their growth stories [1].

For Mike Musheinesh, CEO of Detroit Axle, the economic effects of President Donald Trump's import tariff policies arrived like a sledgehammer. The auto parts retailer's tariff bill on $1 million of imports skyrocketed from $25,000 to an eye-watering $725,000 overnight. It was a 70% jump that transformed the federal government into Detroit Axle's single largest business expense. Facing a $700,000 increase in cost per shipment, Musheinesh had to make a choice. He has avoided layoffs, but the financial pre ...

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Advance Auto Parts (NYSE:AAP) Q4 2025 Earnings call February 13, 2026 08:00 AM ET Company ParticipantsBret Jordan - Managing DirectorLavesh Hemnani - VP and Head of Investor RelationsMark Jordan - VP of Equity ResearchRyan Grimsland - EVP and CFOShane O'Kelly - President and CEOConference Call ParticipantsChris Horvers - Senior AnalystScot Ciccarelli - Managing Director and Senior Equity Research AnalystSeth Sigman - Managing Director and Senior Equity Research AnalystSimeon Gutman - AnalystZach Fadem - Man ...

Core Insights - Advance Auto Parts (NYSE: AAP) is set to release its fourth-quarter earnings soon, with the stock experiencing a significant rise of 5.4% today and an impressive increase of 51.9% in 2026 alone [1][2]. Company Performance - The company is identified as a deep value stock for 2026, with operational metrics lagging behind competitors like O'Reilly Automotive and AutoZone. Improvement in these metrics could lead to a substantial increase in stock price [2]. - Advance Auto Parts has a poor track record in the auto parts retailing business, which is critical for its success [4]. Management Strategy - CEO Shane O'Kelly is implementing a comprehensive restructuring plan, which includes closing over 700 locations and opening new stores in leading market areas. This strategy aims to enhance the availability of stock-keeping units (SKUs) and improve same-day delivery [5]. Market Conditions - Investors are hoping for improved profit margins and positive guidance for 2026 in the upcoming earnings report. However, the overall market for auto parts is weak, as indicated by companies like 3M and RPM International reporting weak sales [6].

Group 1 - AutoZone, Inc. will release its second quarter results for the period ending February 14, 2026, on March 3, 2026, before market open [1] - A conference call to discuss the quarterly results will take place on March 3, 2026, at 10:00 a.m. (ET), accessible via webcast and phone [1] - As of November 22, 2025, AutoZone operates a total of 7,710 stores, with 6,666 in the U.S., 895 in Mexico, and 149 in Brazil [2] Group 2 - AutoZone is a leading retailer and distributor of automotive replacement parts and accessories in the Americas, offering a wide range of products for various vehicle types [3] - The company has a commercial sales program that provides prompt delivery and credit to various automotive service providers [3] - AutoZone also sells products online through its websites, including automotive diagnostic and repair software under the ALLDATA brand [3]

Group 1: AutoZone's Success - AutoZone has increased its earnings per share by 21 times since 2005, with its share price rising 42 times during the same period [6][8] - The company effectively utilized its steady cash flow for share buybacks, averaging 120% of its annual income allocated to this purpose [7][8] - AutoZone bought back 80% of its outstanding shares in 2005, leading to significant growth in earnings and share price [8] Group 2: UK Market Dynamics - The UK market is characterized by persistently low valuations due to slow adoption of global best practices in capital allocation by publicly listed companies [2][3] - Many UK companies prioritize dividends over share buybacks, which can be more effective in enhancing shareholder value, especially in a high-yield environment [3][4] - UK active fund managers have experienced nine consecutive years of outflows, making dividends a crucial lifeline for managing these outflows [4] Group 3: Potential for Change in the UK - The UK equity market is seen as being in a slow liquidation state, but such environments can present exceptional long-term investment opportunities [5] - There is a parallel with Japan, where outdated governance practices led to low valuations, but recent activist engagements have spurred share buybacks and market revival [11][12] - The UK is undergoing changes in governance and capital allocation practices, with recent activist cases leading to board resignations and shifts in management focus [13][14] Group 4: Future Investment Opportunities - A new UK-listed company has been identified as a potential investment opportunity, with plans to return substantial capital to shareholders and a transition to a capital-light model [18][21] - This company has lost 50% of its value from its peak but could trade at 3 times earnings if recovery unfolds as expected [21] - The timing of the investment opportunity is critical, with meaningful catalysts expected in March/April 2026 that could lead to a significant stock recovery [19]

Core Viewpoint - Advance Auto Parts is experiencing a positive market response, with its stock price increasing by 5.2% today and over 28% year-to-date, indicating a growing interest in its value proposition [1]. Group 1: Company Performance - The investment case for Advance Auto Parts hinges on the expectation that management can enhance operational performance to align more closely with competitors like AutoZone and O'Reilly Automotive [2]. - The company's EBITDA margin is significantly lower than its peers, contributing to its low price-to-sales ratio [2]. Group 2: Market Outlook - The overall market outlook for the auto aftermarket is weak, as indicated by 3M's forecast for 2026; however, the situation is viewed as a self-help opportunity for Advance Auto Parts [3]. - CEO Shane O'Kelly's strategic restructuring efforts are seen as a potential catalyst for improving profit margins and unlocking considerable upside for the stock [3]. Group 3: Strategic Initiatives - O'Kelly's restructuring plan includes the closure of over 700 locations and the opening of new stores in strategic areas where Advance Auto has a competitive advantage [4]. - The introduction of larger market hub stores aims to address inventory management challenges, enabling same-day availability of parts for customers [4]. - A new loyalty program targeting DIY customers has been launched, aimed at enhancing customer retention and loyalty [5]. Group 4: Investment Considerations - Despite the positive developments, Advance Auto Parts was not included in a recent list of the top 10 stocks recommended for investment, suggesting a cautious approach for potential investors [6].

Upgrades Summary - Susquehanna upgraded Arm (ARM) to Positive from Neutral with an unchanged price target of $150, citing recent downgrades from competitors and significant underperformance as an "excellent setup" for investors [2] - BNP Paribas upgraded Seagate (STX) to Outperform from Neutral with a price target of $380, expressing greater conviction that "robust" data center storage demand could lead to a longer upcycle than initially expected [2] - Raymond James upgraded Ulta Beauty (ULTA) to Strong Buy from Outperform with a price target increase to $790 from $605, anticipating "outsized growth" in fiscal 2026 following heavy investments [2] - Northcoast upgraded Advance Auto Parts (AAP) to Buy from Neutral with a price target of $55, highlighting "healthy" demand trends and performance improvements into 2026, along with a strategic decision to sell Worldpac and focus on core retail [2] - BofA upgraded Oklo (OKLO) to Buy from Neutral with a price target raised to $127 from $111, following a binding agreement with Meta (META) to develop a phased 1.2 GW advanced nuclear campus [2]

Group 1 - AutoZone, Inc. (NYSE:AZO) has experienced a decline in its price-to-earnings ratio to around 23, despite maintaining good earnings and growth [1] - The stock's recent performance was impacted by an inconsistent earnings report, leading to a significant sell-off, but the company is expected to recover in the next quarter [1] - AutoZone has reduced its share count by 44.9% since the end of 2015 and approximately 89% since summer 1998, contributing to its status as a long-term outperformer [2] Group 2 - The current high interest rates make financing for new cars expensive, prompting consumers to seek replacement parts for their existing vehicles [2] - AutoZone's stock has pulled back 22% from its recent highs, presenting a potential buying opportunity [2]