NVDA - Stock Split Watch: 2 Monster Growth Stocks Up 376% and 1160% in 5 Years to Buy Before 2024
2023-11-28 08:15:00 ET
Some investors use stock splits as a roundabout way of finding good companies. The logic is simple enough: Forward stock splits are only necessary after substantial and sustained share price appreciation, which typically coincides with consistently strong financial results.
For instance, Nvidia (NASDAQ: NVDA) and MercadoLibre (NASDAQ: MELI) returned 1,160% and 376%, respectively, over the last five years. That price appreciation qualifies the companies as stock-split candidates but also reflects robust sales and earnings growth on a regular basis.
More importantly, Nvidia and MercadoLibre are well positioned to maintain that momentum in the future. That means both stocks are worth buying today whether they split or not.
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Stock Split Watch: 2 Monster Growth Stocks Up 376% and 1,160% in 5 Years to Buy Before 2024