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Practical Advice from

7 Spinoff Stocks That Could Be Better Than Their Parents

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As we currently make our way through October and the beginning of the new television season, the Big Bang Theory spinoff Young Sheldon is getting solid reviews, providing evidence that even in television, spinoffs can work wonders.

“The facts are overwhelming,” wrote Joel Greenblatt in his 1998 book You Too Can Be a Stock Market Genius. “Stocks of spinoff companies, and even shares of the parent companies that do the spinning off, significantly and consistently outperform the market averages.”

Back in July, I discussed seven stocks that had huge spinoff potential, which included Costco Wholesale Corporation (COST) spinning off its Canadian operations, the most successful of its international operations.


The July piece was suggestive in nature; it’s likely that some, if not all of them, won’t see the light of day.

This article is backward looking in that I’ll take seven spinoffs that have occurred over the past 12 months and decide in all seven situations whether the parent or the spinoff is the better stock to own for the next three-to-five years.

Prices and data are from the original InvestorPlace story published on October 12, 2017. Click on ticker-symbol links in each slide for current prices and more.

SEE ALSO FROM KIPLINGER: Quiz: Test Your Bear Market Knowledge

This slide show is from InvestorPlace, not the Kiplinger editorial staff.


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