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Netflix is on the path to hit a record high above $500, Oppenheimer analyst says

These quarantine stocks are taking off this month

The communications services sector is leading this month, and one stay-at-home stock is holding the top.

Netflix shares have rallied 36% this year, adding another 5% in just over a week, as large swaths of the country remain indoors due to the coronavirus pandemic.

Ari Wald, head of technical analysis at Oppenheimer, says Netflix's rally is more proof of the power of growth stocks.

"For us, it's really a recommendation for buying growth broadly, which includes technology and health care as well. For us, growth has been market leadership, and we think likely to remain so amid what we see as a low and slow economic recovery given its resiliency to oscillating interest rates and commodity prices," Wald said on CNBC's "Trading Nation" on Monday.

Growth stocks are companies that are seen as having potential for long-term earnings. These include Netflix as well as the other FANG names Facebook, Amazon and Google parent Alphabet.

"It's also important to mention that just a month ago, Netflix was flat for the last two years, so this is a breakout that we think is just getting started, you know. For Netflix, you've got support at $400 and upside north of $500," said Wald.

A move to $500 implies more than 13% upside for Netflix. It would also take out its old record high of $449 set in April.

Not everyone is as bullish on the streaming company. Gina Sanchez, CEO of Chantico Global, says Netflix may struggle to keep up with its pace of growth.

"You've seen massive subscriber growth and the problem with that is that it may have pulled forward growth that might have happened later in the year. If you didn't subscribe to Netflix during this time period, why would you subscribe later? And that's the big challenge that I think a lot of investors are having when looking at stock and future stock growth for Netflix," Sanchez said during the same segment.

Netflix added 15.8 million global subscribers in the its first quarter. It expects to add 7.5 million in its second quarter. 

"Sustainability is the biggest risk," Sanchez said.