A cybersecurity play emerges as tariff worries rock stocks, Oppenheimer chart analyst says

CrowdStrike has emerged as an attractive stock as U.S. tariff worries rattled stocks on Monday, according to Ari Wald, head of technical analysis at Oppenheimer. Wald appeared on CNBC’s “Power Lunch” on Monday to share a few of his favorite names after U.S. President Donald Trump signed an order to implement tariffs against key global trade partners. On Monday, markets initially slid on worries of a potential global trade war and the impact on earnings and valuations of U.S. companies. Though the Dow Jones Industrial Average at one point tumbled more than 600 points, the major averages ultimately curtailed their losses after Trump said he would pause a 25% tariff on Mexican goods for one month. Three buying opportunities have emerged amid this volatility, according to Wald, whose top three sector ideas remain in technology, financials and industrials. Here were his quick takes during “Three-Stock Lunch.” CrowdStrike Cybersecurity company CrowdStrike is Wald’s large-cap stock pick in software, an area that has had a broken out since the U.S. presidential election and is now tactically attractive again after a brief period of consolidation, the analyst said. “It’s rallied right into its July peak at $397. It’s paused here, but with a positive trend behind it and a bullish industry, those top-down tailwinds, I think you see a breakout in CrowdStrike over the coming weeks to months,” Wald said. CrowdStrike is up about 30% over the past 12 months. Hamilton Lane Wald also thinks it’s time to pick up shares of investment management and advisory firm Hamilton Lane after the stock’s recent rough patch. It’s a tactical pick in capital markets, the analyst said, noting that Oppenheimer recently upgraded shares to outperform. Shares have been in a rough patch as of late, off about 12% over the past three months. “It’s corrected right into the bullish slope of its 200-day average, what we see as a near-term opportunity to buy long-term strength. There was a nice false breakdown there. You fell below that level, came right back above it. That’s a sign of selling fatigue,” Wald said. “You add it up, and I think Hamilton Lane is at a bullish inflection point.” Mueller Water Products Wald is also eyeing another under-the-radar play, Mueller Water Products . “We’re seeing strength in these mid-cap names that aren’t necessarily household names,” he said. “[Mueller Water Products] is another stock down double digits from its prior high, building a platform above that rising 200-day average, I think it sets up to see a resumption of its uptrend.” Oppenheimer has an outperform rating on the Mueller Water Products and named it among its top 50 buy ideas among small and mid-cap companies in its coverage earlier this year. Shares of the water infrastructure products maker, also one of the largest manufacturers of fire hydrants in North America, are up about 65% over the past year. “There’s a bullish trend here. I see the support at the industry level as well,” Wald said.