Spinoffs Are Outperforming Parent Companies


Crypto Whales Are Loading Up — Are You?

New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.


In a recent tweet, CNBC Senior Markets Commentator Michael Santoli pointed out how WhiteWave Foods Co (NYSE: WWAV) stock is now up 215.8 percent since its May 2013 spinoff from parent company Dean Foods Co (NYSE: DF), which is down 5.9 percent over the same period.

But, WhiteWave is not the only recent spinoff that has left its parent company in the dust.

ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

A Few Others

 

  • Abbott Laboratories (NYSE: ABT)'s spinoff AbbVie Inc (NYSE: ABBV) is up 80 percent since its 2013 spinoff, while its parent stock is up 29.0 percent.
  •  

     

  • Hewlett Packard Enterprise Co (NYSE: HPE) is up 28 percent since its 2015 spinoff, while HP Inc (NYSE: HPQ) is down 7.9 percent.
  •  


    FREE REPORT: How To Learn Options Trading Fast

    In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, ​a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.


     

  • Baxter International Inc (NYSE: BAX) spinoff Baxalta was up nearly 50 percent in less than a year of trading before getting bought earlier this year.
  •  

    The Advantages Of Spinning Off

    While spinoffs are far from a guarantee, they do tend to outperform the market as a group. According to Cantor Fitzgerald, spinoffs completed between 2009 and 2013 outperformed the S&P 500 in their first year of trading by an average of more than 17 percent.

    Goldman Sachs analyst David Kostin believes even more spinoffs are likely on the way in the second half of 2016.

    “We believe the prospect of modest top-line growth and flat margins in 2016 will spur management to pursue corporate spinoffs as a means of boosting shareholder returns,” he said earlier this year.

    In the past decade, the Guggenheim Spin-Off (ETF) (NYSE: CSD) had delivered a 58.1 percent return, topping the 46.4 percent return of the SPDR S&P 500 ETF Trust (NYSE: SPY).

    Disclosure: The author holds no position in the stocks mentioned.


    Crypto Whales Are Loading Up — Are You?

    New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.


    Posted In: EducationSpecialty ETFsETFsGeneralBaxaltaCantor FitzgeraldDavid KostinGoldman SachsMichael Santoli