CrowdStrike Holdings Inc (NASDAQ:CRWD) shares nearly touched $300 last year before spiraling lower with the overall market as growth stocks took a back seat to value names amid rising inflation.
After being cut in half, Virtus Investment Partners' Joe Terranova believes the cybersecurity stock has found a bottom.
In fact, "a lot of the software names bottomed ahead of the S&P 500," Terranova said Wednesday on CNBC's "Fast Money Halftime Report."
The bottom for the S&P 500 was on May 20, but software names bottomed about a week before, including CrowdStrike, he said.
"If you go back to the experience of 2008 and 2009, what you'll find is that software bottomed ahead of a lot of the estimates coming down further," Terranova said.
The Kicker: After putting in what Terranova expects to be the lows for CrowdStrike, the stock has formed a "very bullish technical formation that seems to be building," he said. "So I obviously purchased that name."
He noted that the market has absorbed a lot of negative news in recent weeks, which seems to be signaling a bottom for the overall markets.
If he is right and the bottom is in, CrowdStrike should be set to trade higher from a technical perspective on any catalyst for the overall market, which could come as soon as Friday when CPI data for May is released, he said.
See Also: What Are Whales Doing With CrowdStrike Holdings
CRWD Price Action: CrowdStrike has a 52-week high of $298.48 and a 52-week low of $130.
The stock was up 0.62% at $177.78 at press time, according to data from Benzinga Pro.
Photo: aichinger76 from Pixabay.
