Stock splits can be advantageous for investors for two reasons. First, they make a Stock more accessible by reducing the price per share. Second, they call attention to stocks that have undergone substantial price appreciation, and that generally means the underlying business is doing something right.

HubSpot (NYSE: HUBS) and (NASDAQ: MELI) fit that description. They have achieved five-year returns of 310% and 380%, respectively, qualifying both as stock split candidates in 2024.

That share price appreciation was a product of financial strength and compelling growth prospects. Those qualities make HubSpot and MercadoLibre worthwhile long-term investments whether or not the stocks split.

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Source Fool.com