Stock splits excite investors for two reasons. They reduce the price per share, and they often hint at a competitively advantaged company with solid financials. Stock splits generally follow substantial share price appreciation, and that rarely happens to companies that lack sound fundamentals.

With that in mind, Chipotle Mexican Grill (NYSE: CMG) and Palo Alto Networks (NASDAQ: PANW) rewarded shareholders with monster returns of 345% and 395%, respectively, over the last five years. That share price appreciation makes both companies stock-split candidates in 2024. More importantly, it shows that both stocks can create value for patient shareholders, and investors should aspire to own such companies.

To that end, whether they split their stocks or not, Chipotle and Palo Alto are worthwhile long-term investments.

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Source Fool.com