Tom Lee says these stocks could rally in coming weeks on CDC easing mask requirements

Published Wed, May 19 202112:17 PM EDT

Stocks from sectors hardest hit by the Covid pandemic could rally following the CDC's latest public health guidance easing mask requirements, Fundstrat co-founder Tom Lee said. "We think these stocks could see dramatic gains over the next few weeks," Lee wrote in a note released Monday evening. "CDC has been abruptly lifting restrictions, and these groups could see easing soon." The Centers for Disease Control and Prevention announced last Thursday that fully vaccinated people no longer need to wear face masks or maintain a 6-foot distance from others in most settings, indoors and outdoors. Lee's epicenter stocks portfolio — shares of companies worst affected by the pandemic — has performed well since its unveiling. The market strategist identified the hardest hit epicenter stocks that are well positioned to pop as federal, state and local officials lift public health precautions and U.S. Covid cases continue to drop . Here are several picks on Lee's list: The strategist's airline picks primarily comprise budget U.S. airlines. Domestic leisure travel have been recovering from the pandemic , airlines executives said, though guidelines surrounding international travel remain uncertain. Current CDC guidelines still require plane, train and bus travelers to wear face masks, even if fully vaccinated. The CDC's " No Sail Order " shut down cruises from roughly March through October last year. The federal agency issued a conditional sailing order on Oct. 30, 2020, with public health requirements and updated guidance on May 5 to allow trial and restricted passenger voyages. Carnival Cruise Line said it's in talks with the CDC to resume sailing in July, NBC News reported . Major theme parks relaxed mask policies last week following the CDC's announcement. Disney World and Universal Orlando continued to require mask wearing indoors, but made facial coverings optional at outdoor locations. Lee also focused on companies in the casino, live events and entertainment, and gym and fitness sectors. While Lee saw strong gains from hardest hit epicenter stocks in the coming weeks, he continued to predict weakness in technology and other growth stocks ahead.

The Carnival Liberty cruise ship is seen after docking to allow crew members to receive the COVID-19 vaccine at Port Canaveral, the first U.S. port to sponsor COVID-19 vaccine distribution to port workers and vessel crew members.

Paul Hennessy | LightRocket | Getty Images

Stocks from sectors hardest hit by the Covid pandemic could rally following the CDC's latest public health guidance easing mask requirements, Fundstrat co-founder Tom Lee said.

"We think these stocks could see dramatic gains over the next few weeks," Lee wrote in a note released Monday evening. "CDC has been abruptly lifting restrictions, and these groups could see easing soon."

The Centers for Disease Control and Prevention announced last Thursday that fully vaccinated people no longer need to wear face masks or maintain a 6-foot distance from others in most settings, indoors and outdoors.

Lee's epicenter stocks portfolio — shares of companies worst affected by the pandemic — has performed well since its unveiling. The market strategist identified the hardest hit epicenter stocks that are well positioned to pop as federal, state and local officials lift public health precautions and U.S. Covid cases continue to drop.

Here are several picks on Lee's list: