2 Monster Growth Stocks Up 310% and 380% in 5 Years to Buy Now

Stock splits can be advantageous for investors for two reasons. First, they make a stock more accessible by reducing the price per share. Second, they call attention to stocks that have undergone substantial price appreciation, and that generally means the underlying business is doing something right.

HubSpot (NYSE: HUBS) and MercadoLibre (NASDAQ: MELI) fit that description. They have achieved five-year returns of 310% and 380%, respectively, qualifying both as stock split candidates in 2024.

That share price appreciation was a product of financial strength and compelling growth prospects. Those qualities make HubSpot and MercadoLibre worthwhile long-term investments whether or not the stocks split.

Here’s what investors should know.

1. HubSpot

HubSpot touts its position as the leading customer relationship management (CRM) platform for scaling businesses. Its portfolio includes applications for marketing, sales, customer service, and operations, as well as tools for content management and payments. Those products are integrated on a single platform that helps businesses more efficiently generate leads, convert leads into customers, and maintain lasting relationships with those customers.

HubSpot is a leader in marketing automation software, and the company has a strong presence in the small-business CRM market, where its freemium pricing is particularly attractive. HubSpot is also making an effort to win larger customers by adding more sophisticated features to its platform. For instance, the company recently relaunched its sales software with improved prospecting and deal management capabilities.

HubSpot reported strong financial results in its third quarter (ended Sept. 30, 2023). Revenue increased 26% to $557 million on strong customer growth and a modest increase in customer spending. Additionally, non-GAAP (adjusted) income more than doubled to reach $83 million as the company saw cost benefits from more conservative hiring and infrastructure optimization.

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