Stock splits can help investors identify exceptional companies. Specifically, splits are necessary only after substantial and sustained price appreciation, which rarely happens to mediocre companies. The split itself is somewhat irrelevant. It's the share price appreciation that tells investors a company is doing something right.

(NASDAQ: CRWD) and MercadoLibre (NASDAQ: MELI) are good examples. Their shares soared 710% and 185%, respectively, over the last four years. That means both stocks trounced the S 500, which returned 90% during the same period. That outperformance can be attributed to strong financial results and promising growth prospects in both cases.

While CrowdStrike and MercadoLibre are certainly stock split candidates at their current prices, both stocks are worthwhile investments, whether those splits happen or not. Here's why.

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Source Fool.com