Meet the Potential Stock-Split Stock That Soared by 470% Over the Past 15 Years. Now, It's Poised to Join Nvidia, Apple, Microsoft, Amazon, Alphabet, Meta, and Tesla in the $1 Trillion Club by 2026. | The Motley Fool

"In 2018, tech giant Apple became the first U.S. company to reach a market capitalization of $1 trillion. Since then, it's been joined by other companies such as Microsoft, Amazon, Alphabet, Meta Platforms, and Tesla. Of course, the list also includes the current market-cap leader, Nvidia. It's becoming increasingly normal for a new company to join the $1 trillion club. But it remains an impressive feat nevertheless. At this pace, these tech titans could be joined by brick-and-mortar giant Walmart in 2026."

"Over the past 15 years, Walmart stock has risen by 470%. The company has also been a steady dividend payer over this time. For investors who bought, held, and reinvested the dividends along the way, returns were even better with a 680% gain. Stocks that post strong long-term gains, as Walmart stock has, often decide to undergo stock splits, bringing the price per share down due to a higher number of shares overall."

"At a high level, stocks tend to go up when profit potential goes up. Perhaps profit potential goes up because a business is about to reach a new scale thanks to new locations or an acquisition. Or perhaps profit potential goes up because management is about to unlock some operating leverage. But either way, for Walmart stock to go up another 22%, one would expect improvement to its operating income over the next year or so."

Walmart had a market capitalization of $820 billion and needs roughly a 22% increase to reach $1 trillion by 2026. The stock rose about 470% over 15 years and about 680% for investors who reinvested dividends. Walmart executed a 3-for-1 stock split in 2024 and has split shares multiple times historically. Stock value typically increases when profit potential rises through scale, acquisitions, or operating leverage. Retail sales are not currently the primary driver of operating income growth. Improvement in operating income, potentially aided by digital upgrades and operating leverage, would be necessary to approach a $1 trillion valuation.

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