Valentine's Day is a time to shower that special someone with
love and affection. It's also a day to shower them with
Americans will spend an estimated $20 billion this Valentine's
Day. Dining out will account for nearly half that spending,
according to the retail industry research firm IBISWorld. Another
$2.35 billion will go toward romantic getaways at exotic hotels
or intimate bed and breakfasts.
But much of that money will be spent on things like candy,
flowers, jewelry, clothing and greeting cards. With that in mind,
I have identified five public companies - one from each category
- that should make a killing this Valentine's Day.
A big day would help set the table for a big quarter. And a
profitable quarter could make for a rising share price.
Here are five Valentine's Day stocks to keep an eye on:
Chocolates are typically the Valentine's Day candy of choice.
And no brand is more commonly associated with chocolate than
Hershey. Hershey's Kisses and Hugs are always big sellers this
time of year, as are the company's heart-shaped Valentine's Day
boxes of chocolates. Those are a major reason why January-March
quarter was Hershey's most profitable last year - and why, the
last two years, the stock averaged a 15% bounce in the three
months that followed V-Day.
Online flower orders are on the rise, and 1-800-Flowers has
become the sector's most recognizable brand. The company is
expecting to receive 1 million orders this Valentine's Day. And
it's not just for flowers - chocolates, fruit baskets and other
treats are other popular items. While the company hasn't posted
a first-quarter profit in four years, it's coming off its most
profitable quarter in some time.
There are thousands of companies that sell fine jewelry. But
Tiffany's is traditionally one of the most revered brands, and
the company is always aggressive in its Valentine's Day
American Greetings (
You're probably filling out a greeting card right now,
scribbling away sweet nothings to your Valentine. That's where
American Greetings makes its money. Shares of the seasonal card
maker have gotten a nice post-Valentine's Day push each of the
last two years, rising 11% over the next six weeks in 2011 and
9% in five weeks last year.
It may make you blush, but there's no denying that women love
receiving sexy lingerie as their Valentine's Day gift.
Victoria's Secret - one of six companies Limited Brands owns -
is by far the biggest seller of women's lingerie. While it only
accounts for a portion of Limited Brands' sales - Bath &
Body Words, White Barn Candle Company are among Limited's other
recognizable brands - Victoria's Secret's Valentine's Day sales
should its parent company a nice mid-February boost.