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5 Stocks One Expert Says Are Poised For Upside Even If The Market Keeps Heading Lower

5 Stocks One Expert Says Are Poised For Upside Even If The Market Keeps Heading Lower

These 5 stocks should deliver gains no matter what the rest of the market does.

Stocks have turned sharply lower over the last week.

The S&P 500 is down nearly -7% since last Wednesday, the Dow has fallen -5%, and the tech-heavy Nasdaq is down more than -9%.

Amid the correction, IHT Wealth Management’s Yussef Gheriani says now’s the time for long-term investors to look for buying opportunities.

“I don’t necessarily think the worst is over,” Gheriani, the firm’s director of investments, said. “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 says the best opportunities may be in some of the stocks that have been hit hardest this year, and says to look at airlines specifically – but only if you’ll buy and hold them for the next one to two years.

Airlines are “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,” Gheriani said. “If not completely back to normal, we’re going to be getting there.”

Gheriani’s top picks among airline names are Delta (NYSE: DAL) and Southwest (NYSE: LUV), and said the pair will see loyal customers return as fliers get vaccinated against the coronavirus.

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

Apart from airlines, Gheriani likes casino stock Wynn Resorts (NASDAQ: WYNN) as travel picks back up, and says gamblers are likely to return more quickly given their higher risk tolerance.

Gheriani also says there’s opportunity in the cloud space.

“There are some names that we think make a lot of sense – kind of the backbone of the cloud areas like VMware (NYSE: VMW) or even you big guys like your Microsofts (NASDAQ: MSFT) of the world,” Gheriani concluded. “Those are pretty reasonable, and we expect them to continue to grow.”

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