HUBS - Stock Split Watch: 2 Monster Growth Stocks Up 230% and 337% in 5 Years to Buy Now and Hold Forever
2023-09-16 07:35:00 ET
When a company splits its stock, it reduces the share price and increases the number of shares available to investors. A similar cosmetic change takes place when a cake is cut into more slices. Stock splits do not change the underlying business or its valuation in any material way.
That said, stock splits can still point investors toward good businesses because they are only necessary following substantial and sustained share price appreciation, which rarely happens by accident. For example, HubSpot (NYSE: HUBS) and MercadoLibre (NASDAQ: MELI) crushed the market over the last five years, climbing 230% and 337%, respectively. The S&P 500 (SNPINDEX: ^GSPC) increased just 55% during the same period.
HubSpot and MercadoLibre produced those returns while reporting solid financial results like clockwork, and their share prices have appreciated to the point where a split may be on the horizon. But these two monster growth stocks are worth buying whether that happens or not.
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Stock Split Watch: 2 Monster Growth Stocks Up 230% and 337% in 5 Years to Buy Now and Hold Forever