In a recent tweet, CNBC Senior Markets Commentator Michael Santoli pointed out how WhiteWave Foods Co WWAV 0.9% stock is now up 215.8 percent since its May 2013 spinoff from parent company Dean Foods Co DF 1.77%, 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.
A Few Others
- Abbott Laboratories ABT 0.55%‘s spinoff AbbVie Inc ABBV 0.3%is up 80 percent since its 2013 spinoff, while its parent stock is up 29.0 percent.
- Hewlett Packard Enterprise Co HPE 1.58% is up 28 percent since its 2015 spinoff, while HP Inc HPQ 0.61% is down 7.9 percent.
- Baxter International Inc BAX 0.34% 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…
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