5 Top Valentine’s Day Stocks To Buy

Chocolates, roses, diamonds, wine — these are all things we gift our lovers for Valentine’s Day. But, what if you could make a few investments this Valentine’s Day that could secure a bright future somewhere on Retirement Beach for you and your Valentine? We’d take that over chocolate any day!

According to the National Retail Federation (NRF), consumers are planning to spend an average of $165 this Valentine’s Day  —for a total of $21.8 billion! Although that’s $32 less per person than last year, it’s still the second-highest Valentine’s Day in terms of expected spending. So, what better time to cash in on L-O-V-E and take advantage of the uptick in spending?

Here are the top five Valentine’s Day stocks you should consider adding to your portfolio before Cupid beats you to it. 

Match Group (MTCH)

Online dating brought in $3.3 billion in 2021, with 9.3% growth expected by 2024.Online dating was already becoming mainstream before the Covid-19 pandemic. But, when Covid hit, demand for online dating surged as people had to find new ways to meet — and flirt.

Online dating signups and activities also reach new heights during the time leading up to Valentine’s Day. Check out what these dating apps have reported:

• JigTalk reported a 122% uplift in singles signing up for the dating app during the weekend leading up to V-Day.
• In 2019, The Inner Circle saw a 13% increase in singles signing up for the service on Valentine’s Day compared to the same time the week prior.
• Activity on Tinder reaches an all-time high between January 1st and February 13th. In 2019, the total number of matches around the world spiked by 40 million during that period.
• One report found that online dating activity increased by more than 18% across the globe between February 1st and 14th.
• Plenty of Fish found that singles pay much more attention to their dating profiles around and on Valentine’s Day, with 36% of users reporting updating their pictures during this time and 37% replying to more messages, while 29% are more likely to initiate a new conversation.

Match.com was launched in the 90s, and since then, Match Group has acquired and built a path to dominance in the category. Today, the Match Group remains a key player in the world of online dating around the world. It’s invested a lot to build a vast portfolio of dating app brands, including Match, Tinder, OkCupid, Hinge, Our Time, Plenty of Fish, and Black People Meet. 

Outside of online dating, MTCH has recently dipped its toes into social apps after acquiring Hyperconnect in 2021, a company that runs the apps Azar and Hakuna Live. These apps are focused more on social discovery and online connections rather than online dating.

MTCH makes money by charging users for some premium services such as unlimited likes, boosted appearances, and to see who has viewed your profile, among other features that help users along their online dating journey. Since all of these interactions are digital, the corporation has very few operating costs associated with the subscriptions, providing high gross margins.

Some analysts expect MTCH to climb nearly 40% over the next year.

Bumble (BMBL)

Bumble is another popular dating app that allows users to swipe right to show interest in a potential mate. Bumble, which encourages women to make the first move by sending the first message, aims to be a platform to find longer-lasting relationships than others like Tinder and Hinge, which are more geared towards hookups and flings.

In 2020, Bumble generated $582.2 million in revenue and had beat its projected revenue run rate for two consecutive years.

The total number of paying users on Bumble has also increased by 20% year-over-year to 2.9 million worldwide.

In addition to its dating app, Bumble also has a matching service for friends, called Bumble BFF, and Bumble Bizz, a professional networking platform.

BMBL is a fairly new stock after the company launched its IPO in 2019. In November 2021, it posted its first decline in user growth since going public. In the third quarter, the total amount of paying users on Bumble fell 2% from the quarter before as the Delta variant surge caused new lockdowns and social distancing guidelines, which curtailed consumer spending on dating apps.

Bumble’s other dating app, Badoo is primarily used by urban middle-class users and also saw its user growth impacted by the global health crisis and ensuing economic pressure.

Despite the slowdown, Bumble still raised its full-year revenue forecast and asserted it’s well-positioned for 2022 as it continues its international expansion.

1800-Flowers (FLWS)

One of the most popular gifts to express your love on the day of love is, of course, flowers. The NRF reports that 35% of survey respondents said they plan to gift their Valentine a bouquet, meaning a nationwide company like FLWS will likely see an uptick in business.

But, even for those valentines who are allergic or not flower fans, 1-800-Flowers.com has a gift for everybody. The corporation also owns other gift brands, including Harry & David, Shari’s Berries, Fruit Bouquets, PErsaonliziton Mall, and The Popcorn Factory; the corporation has expanded its cold-storage facilities and turned to automation in its warehouses and distribution centers.

The CEO said the company is well-positioned to help their customers connect, express, and celebrate with their loved ones every day and on holidays.

In the second fiscal quarter of 2021, 1-800-Flowers reported record revenue. An increase of 44.8% year-over-year to $877.3 million — the company’s seventh consecutive quarter of strong revenue growth. 

The company is looking forward to more momentum and growth as it dives deeper into the corporate gifting market — a sector that’s booming — with the launch of a new corporate gifting platform called Hero. The platform allows companies to manage the entire gifting journey, including gifts for corporate events, employee gifts and recognition programs, and holiday gifts for employees and clients. 

Hershey (HSY)

What’s Valentine’s Day without a giant heart or pair of lips made out of Hershey’s chocolate?

Last year, 86% of Americans planned to buy chocolate or candy on Valentine’s Day. Hershey boasts a delicious portfolio of chocolate companies, including higher-end chocolatiers like Scharffen Berger Chocolate Maker and Dagoba Chocolate — good news considering premium chocolate sales have been growing fast. 

As demand for chocolate remains high, sales rose by more than 5% per quarter in 2021. The high demand and the tightening supply chain have caused a sharp spike in the price of cocoa, rising more than 8% since December 2021.

Hershey’s growth is likely to continue as the candymaker recently debuted aspartame-free, no sugar Jolly Ranchers and York Peppermint Patties with hopes of capturing the 70% of Americans who have concerns about how much sugar they consume.

So, with a solid business model and steady growth, an investment in Hershey stock could be a sweet treat this Valentine’s Day. Another reason investors love HSY is that its recent consecutive 12-year streak of dividend increases is likely only the beginning of a streak that’s much longer.

Signet Jewelers (SIG)

Jewelry may not be as popular a gift as it used to be, but one stock that continues to get attention around the holiday is Signet Jewelers, the world’s largest diamond jewelry retailer.

The corporation owns more than 2,800 stores with brands that include Zale’s, Jared, and Kay Jewelers. The company has operations in the U.S., Ireland, Canada, the Channel Islands, and the U.K.

Signet Jewelers reported a strong holiday quarter despite pandemic-related supply chain issues and ongoing store closures. The key to the growth was online sales, with an increase of 60.8% year-over-year. So, if you plan on buying some jewelry for your beloved, consider gifting some Signet shares too!

Even though jewelry is declining in gifting popularity, it remains the gift with the highest individual price point, according to the National Retail Federation ($30.34/person), and $3.9 billion spent overall. 

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.