Investors get fired up about stock splits. The reason for that enthusiasm is simple: While stock splits have no direct impact on important fundamentals like earnings or valuation, they are only necessary after significant share-price appreciation, which itself is often a signal of a high-quality business.

A number of well-known companies have split their stocks in the last few years, as detailed below:

• Apple: 4-for-1 split in August 2020.
• Amazon: 20-for-1 split in June 2022.
• Alphabet: 20-for-1 split in July 2022.
• Churchill Downs: 2-for-1 split in May 2023.
• Dexcom: 4-for-1 split in June 2022.
• Monster Beverage: 2-for-1 split in March 2023.
• Nvidia: 4-for-1 split July 2021.
• Palo Alto Networks: 3-for-1 split in September 2022.
• Shopify: 10-for-1 split in June 2022.
• Tesla: 3-for-1 split in August 2022.

Every company on that list has demonstrated its ability to create value for shareholders, and many could see their share prices climb higher in the years ahead, especially with the S&P 500 closing in on bull market territory. The index is just 7% from a record high, the point at which a new bull market definitively begins, and the S&P 500 returned an average of 259% during the last six bull markets.

Here's why Shopify and Monster Beverage are worth buying ahead of the rally.

1. Shopify

Shopify is a turnkey solution for omnichannel commerce. Its software allows merchants to manage sales across physical and digital stores from a single dashboard, integrating with online marketplaces, social media, mobile apps, and direct-to-consumer websites. Shopify also provides adjacent solutions for payment processing, financing, and logistics, and its enterprise-grade platform (Shopify Plus) includes more sophisticated tools for data analytics, machine learning-powered marketing, and wholesale commerce.

Shopify stands apart in terms of its ability to empower merchants. Few (if any) other companies offer the same level of support and flexibility. As a result, Shopify and Shopify Plus are the two most popular e-commerce software products on the market, and Shopify Plus is the most popular omnichannel commerce software product, according to research company G2.

Consumer headwinds persisted in the second quarter, but Shopify still reported solid financial results. Revenue rose 31% to $1.7 billion, a material acceleration from 16% growth in the prior year, and non-GAAP net income clocked in at $0.14 per diluted share, up from a loss of $0.03 per diluted share in the prior year.

Looking ahead, Shopify is well positioned to maintain or possibly accelerate its momentum. The company sold its logistics business to its partner Flexport in June, a move that strategically frees up capital while ensuring merchants still have access to freight and fulfillment services. That has allowed Shopify to refocus on its core competency of e-commerce software, and the company recently launched a suite of artificial intelligence tools that simplify commerce workflows for sellers.

More broadly, retail e-commerce sales are expected to increase at 14% annually through 2030, and wholesale e-commerce sales are expected to increase at 20% annually over the same period. Those tailwinds should keep Shopify in growth mode for years to come. And with shares trading at 11.2 times sales, a bargain to the three-year average of 29.2 times sales, this growth stock is worth buying.

2. Monster Beverage

Monster sells energy drinks under various brands, including Monster Energy and Reign, but the company has also branched into alcoholic beverages in a bid to boost growth. Its portfolio currently includes craft beers, hard seltzers, and flavored malt beverages, but management teased a robust innovation pipeline during the latest earnings call.

Two qualities separate Monster from most peers: brand authority and distribution reach. Specifically, strategic marketing and rapid innovation keep Monster products top of mind among consumers, and the company has an exclusive partnership with Coca-Cola that gives Monster access to the world's largest beverage-distribution system.

So what? Brand authority and broad-distribution capabilities have made Monster the market leader in energy drink sales in the U.S. The company also holds the top spot in several international geographies, including large parts of Latin America and Asia. That has consistently translated into strong financial results, and Q2 was no exception. Revenue increased 12% to $1.8 billion, gross margin expanded 540 basis points to 52.5%, and generally accepted accounting principles (GAAP) net income soared 50% to $0.39 per diluted share.

Looking ahead, Monster has a big opportunity in alcoholic products. The company launched its first flavored malt beverage earlier this year, and sales in the Alcoholic Brands segment soared 88% in Q2. But Monster has growth opportunities in its energy drink business, too. The company plans to expand into dozens of new geographies in the near term, and its recent acquisition of Bang Energy will add a few percentage points to its U.S. energy drink market share, maybe more once Bang transitions to Coca-Cola's distribution network.

On that note, shares currently trade at 9.1 times sales, roughly even with the three-year average of 9.2 times sales. That is a reasonable price to pay for this growth stock given that Monster increased sales by 16% annually over the last three years.

Find out why Shopify is one of the 10 best stocks to buy now

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon.com, Nvidia, Shopify, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Monster Beverage, Nvidia, Palo Alto Networks, Shopify, and Tesla. The Motley Fool recommends Churchill Downs and DexCom and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.