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Growth hits new high against value, and three stocks could ride next leg higher

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Four growth stocks to ride the surge higher

Growth stocks just did something they've never done before.

The IVW growth ETF has surged relative to the IVE value ETF, breaking above 2000 highs to hit a record.

Todd Gordon, managing director at Ascent Wealth Partners, said the tide has turned back to growth as the market leader.

"What you're seeing here is growth outpacing value and that discussion everyone had over the last say six to 12 months in terms of value outpacing growth was just this little consolidation," Gordon said Thursday on CNBC's "Trading Nation."

Michael Binger, president of Gradient Investments, is betting on one social stock to ride the next growth surge.

"I really like Snap here. Their revenue is going to grow in the mid-30% in the next couple of years, their earnings per share, albeit coming off of a low base, is going to grow quite rapidly," Binger said during the same segment. "2020 is going to be a big ad monetization year. … So I really think the stars are aligning for Snap to work its way into the mid-$20s."

Snap would need to rally nearly 50% to get to the midway-mark of $25. It would mark a fresh record, breaking past its current high of $29.44 set in March 2017. Snap is not in the IVW ETF, but tends to trade with momentum.

Gordon prefers one of the other high-momentum stocks – Netflix. He sees a strong parallel channel beginning in mid-2012 that demonstrates its upward trend. Now, he sees it moving above former resistance which should become support.

"That $400 mark I think is going to continue to be support. I think we should be continuing to move higher with stabilization in the overall market. I like what's happening here in the streaming wars as Disney is taking a little bit of a backseat here despite adding all those digital subscribers," said Gordon.

Gordon also likes Home Depot, a name he sees also benefiting from "persistently low interest rates."

"Home Depot acts technically very, very well. It's sort of a narrow channel we've got drawn here but if we zoom in you can see that we're towards the lower end support and we should be able to move higher," he said.

Home Depot is scheduled to report earnings Tuesday.

Disclosure: Ascent holds Netflix and Home Depot. Gradient holds Snap and Parsley Energy. 

Disclosure: CNBC parent NBCUniversal is an investor in Snap.

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