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 (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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Source Fool.com