Market Health

5 Valentine’s Stocks to Invest In

Few holidays are more polarizing than Cupid’s.

On February 14, either you’re happily spoken for, and you have a one-day pass to rub your bliss in everyone’s face…

Or you’re single (whether by choice or not). And you’ll probably scream if you have to sit through one more jewelry commercial.

But regardless of your romantic status, there’s one gift I’m sure you wouldn’t mind receiving this February…


Cupid’s Record Year

More than 55% of Americans plan to celebrate Valentine’s Day this year.

But that doesn’t mean half of the country is coupled up.

The list of “loved ones” has expanded beyond just significant others. The category now also includes children, friends, teachers, co-workers and pets.

Not to mention the ever-important “Galentine’s Day” festivities – where women celebrate female friendships and have yet another excuse to go out to brunch (not that we need one).

So it’s no surprise that consumers plan to shell out an average of $196.31 on their expanding list of loved ones this year – up 21% from 2019’s spending.

In fact, total spending is expected to reach a record $27.4 billion – up 32% from last year.

Here’s how it’ll break down…

Chart - Projected V-Day Spending

Lovers and Loners

Special occasions like Valentine’s Day call for gifts, gifts and more gifts.

Loved ones receive Hallmark cards, flower bouquets, boxes of chocolate, stuffed animals, jewelry, five-star dinners… sometimes all of the above.

That’s why there are more than a few companies throwing lovey-dovey commercials your way. They’re looking for that V-Day sales bump.

Longtime readers know that the holiday season – from Black Friday to Christmas – is the most profitable time of the year for retail stocks. And now, just a month and a half into the new year, those companies are still riding fourth quarter highs.

Many will continue to see growth well into the first quarter thanks to increased sales.

So whether you’re a “lover” or a “loner” this year, you’re probably helping these five companies hit their quarterly goals…

Chart - Lovers and Loners

Leading the pack with nearly 30% in quarterly sales growth is Etsy (Nasdaq: ETSY). The online marketplace is a one-stop shop for unique, customizable gifts for any occasion.

Netflix (Nasdaq: NFLX) follows in a close second. For many couples who don’t want to break the bank on a night out, their go-to option will be takeout and a sappy romantic comedy on the streaming platform.

It’s called “Netflix and chill” for a reason. (And if you don’t know what that is, I’ll tell you when you’re older!)

The last “lover” stock on this list is Ruth’s Hospitality Group (Nasdaq: RUTH), owner of the high-end Ruth’s Chris Steak House chain. Ruth’s Chris is known as a destination spot for special events like birthdays and anniversaries. So it’s no surprise that the restaurant will likely see a nice bump around this time of year.

The other two stocks on this list are for “loners.”

People who fall into this category often use Valentine’s Day as a chance to turn over a new leaf, whether that means joining a gym, making an online dating profile or starting a new hobby.

And that’s one reason why both Match Group (Nasdaq: MTCH) and Planet Fitness (NYSE: PLNT) will likely also see increased sales this quarter.

Where Is the Love?

Love it or loathe it, Valentine’s Day isn’t going anywhere. Nor should you want it to when there are plenty of chances to profit!

So whether you choose to spend your holiday curled up with your valentine – or with the ever-reliable Ben & Jerry – make sure to show yourself some love with a sweet investment or two.

Good investing,