Over the long run, value stocks have outperformed growth stocks on an annualized basis. But since the end of the Great Recession, the roles have reversed. Historically low lending rates and a highly accommodative Federal Reserve have rolled out the red carpet for fast-growing companies looking to borrow at extremely cheap rates. These low lending rates are encouraging growth stocks to hire, acquire, and innovate.
Even with the U.S. economy bouncing back from its worst recession in decades, the nation's central bank has stated its intent on several occasions to keep lending rates at or near historic lows. That's an open invitation for growth stocks to keep chugging higher.
As we move headlong into the second quarter, the following three growth stocks stand out for having all the tools needed to make investors a lot richer.
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Zoom Video Communications
One of the easiest ways to build wealth over time is to buy into businesses that hold significant market share in fast-growing trends. That's why web-conferencing giant Zoom Video Communications (NASDAQ:ZM) gets the nod.