These stocks may give investors upside even if the market comeback fails

Even if the market comeback runs into trouble, IHT Wealth Management's Yussef Gheriani believes it's not a bad time to look for entry points.

But there's a caveat: It applies more to long-term investors than momentum traders.

"I don't necessarily think the worst is over," the director of investments told CNBC's "Trading Nation" on Wednesday. "There's just a lot of uncertainty out there both between Covid, the stimulus packages, the election itself and there's also still significant trade uncertainty between us and China ... Over the remainder of the year, we expect there to be more volatility as the market tries to find its footing."

Gheriani, who helps oversee almost $5 billion in assets, sees pockets of opportunities in some of 2020's hardest hit groups such as airlines. But the key is to buy and hold for at least 12 to 24 months.

"They're definitely starting to perform a little bit better, and that's because people are waking up to the fact that in six months, a year from now, we're going to be back to normal," he said. "If not completely back to normal, we're going to be getting there."

Gheriani's bull case is with or without a fresh government aid package because his expectation is people will get inoculated with a coronavirus vaccine by next summer.

"You're going to have air travel picking back up, and we're going to be focusing at 2022 earnings, 2023 earnings," said Gheriani. "We think those look a lot better."

His top picks in the airline industry are Southwest and Delta due to their loyal customer base.

Gheriani also favors casino stocks, particularly Wynn Resorts, on the notion of a travel pick-up. He contends gamblers generally have a higher risk tolerance, and it applies to the pandemic.

According to Gheriani, the cloud space presents opportunities, too. 

"There are some names that we think make a lot of sense — kind of the backbone of the cloud areas like VMware or even your big guys like your Microsofts of the world," Gheriani said. "Those are pretty reasonable, and we expect them to continue to grow."

Disclosure: IHT Wealth Management's clients own stocks mentioned in this report.

Disclaimer