3 Valentine’s Day Stocks to Buy and Hold for Your Portfolio

3 Valentine's Day Stocks to Buy and Hold for Your Portfolio

3 Valentine’s Day Stocks to Buy and Hold for Your Portfolio


Valentine’s Day is a holiday for those in love to express their affection for each other, and Valentine’s Day is a much-loved tradition that has been widely celebrated since ancient Rome. People buy flowers, chocolates and gifts, but they also buy things they need, such as food and clothing. The holiday has become so popular that retailers have embraced it and used it to generate higher sales with less effort. As such, Valentine’s Day stocks are one of the most popular market trends of the year.

These stocks are seen as a safe bet for investors looking for long-term growth opportunities. However, there are some risks associated with investing in Valentine’s Day stocks.

It’s usually not a good idea to invest in booming stocks around the holidays. These picks tend to crash quickly, or move up and down quickly with the overall market. However, if you invest in a company with strong fundamentals and manage it well, you are less likely to make mistakes.

according to Statista, which is expected to spend about $24 billion on Valentine’s Day in the United States this year. That’s nearly 2 billion more than last year.

So if you’re looking for companies that will thrive on Valentine’s Day, consider these three:

  • Paypal (Nasdaq:PYPL)
  • Movado (New York Stock Exchange:move)
  • Seal Jeweler (New York Stock Exchange:SIG)

Valentine’s Day Stocks: PayPal (PYPL)

PayPal (PYPL) logo overlays a daylight photo of the company building

Source: JHVEPhoto/Shutterstock.com

PayPal’s success is attributed to many factors, such as its innovative solutions, strong brand recognition, and ability to provide exceptional customer service. A few years ago, it was unheard of for someone to use digital payments for in-person shopping. But the shift has taken hold and is unlikely to abate even after the pandemic.

Contactless payment methods are becoming more and more popular, and consumers are always looking for ways to make purchases without seeing a cash register in person. PayPal is a big part of this long-term trend, and its momentum shows no signs of slowing down.

The company’s fourth-quarter revenue hit an impressive $6.9 billion. This is a significant increase from last year’s $6.1 billion. By the end of 2021, the payments technology company’s total annual revenue will reach $25.4 billion, up from $21.5 billion in 2020.

PayPal has more than 426 million active accounts in 2021, but it expects its user base to grow significantly by 2022. This will enable PayPal to sign up an additional 150 to 20 million users.

PayPal expects quarterly growth of 6% in 2022. ebay (Nasdaq:ebay) business, 14%. The company expects to hit $1.5 trillion in full-year revenue, with revenue topping $29 billion.

However, there are also some risks to consider. Consumers at all levels are feeling the pressure of rising inflationary pressures and weak consumer confidence. “We have an incredible business, but we’re not immune to the vagaries of the economy,” CFO John Rainey noted. But PayPal is expected to continue strong revenue growth this year despite occasional troubles .

Movado (MOV)

All kinds of jewelry come with price tags.

Source: Kwangmoozaa/Shutterstock.com

Total sales in the luxury sector fell 23% due to the pandemic. This is the first time since 2009 that sales have declined.

After Covid-19 started to spread, spending on luxury goods decreased, unemployment increased and people had less disposable income. This is because people save more and spend less on luxury goods. However, now that things are returning to normal, spending in the luxury sector will only increase.

Companies like Movado are already showing signs of strength. Movado has been around since 1881, making it one of the oldest brands in the watch industry.

The company recently posted second-quarter and six-month records. Earnings per share were also higher than a year earlier, with strong growth in net sales and operating income.

Net sales increased 96.4% from fiscal 2021 and 10.2% from fiscal 2020. Operating income was $24.6 million, up from a loss of $8.9 million in fiscal 2021 and revenue of $8.8 million in fiscal 2020.

Net sales surged sharply in fiscal 2022. In the first six months, net sales rose nearly 95%. Operating income was $37.9 million, compared with an operating loss of $191.1 million last year.

Movado expects fiscal 2022 net sales of $68.0 to $695 million and gross profit of 55.5% to 56%. It also expects operating profit of 13% to 13.5% and earnings per diluted share of between $2.75 and $2.90.

Valentine’s Day Stocks: Signet Jewelers (SIG)

Jewelry Display in Stories

Source: Shutterstock

Sales in the jewelry industry have risen this year — especially for young shoppers who are buying the category for the first time. Many of them are planning proposals or preparing for a wave of weddings that have been delayed by the coronavirus pandemic.

Signet reported earnings of $1.45 per share in the October quarter, up from 2 cents a year ago. Sales this year soared to $1.54 billion from $1.3 billion last year. The company’s sales rose sharply, beating analysts’ expectations of $1.43 billion.

Its fiscal 2022 revenue is expected to be between $7.41 billion and $7.49 billion, compared with a previous estimate of $7.04 billion to $7.19 billion. The company also expects same-store sales of 41% to 43%, up from 35% to 38% previously.

Signet CEO Virginia Drosos said the company had a smooth holiday, unaffected by various supply chain issues, as it secured inventory early to avoid delays.

The company is conservative about its outlook. But President and CEO Joan Hilson said in its press release that it remains cautious about the outbreak of omicron variants of Covid-19 and a potential shift in consumer spending patterns.

On the day of publication, Faizan Farooque No positions (directly or indirectly) are held in the securities described herein. The views expressed in this article are those of the author and are subject to the InvestorPlace.com publishing guidelines.

Faizan Farooque is InvestorPlace.com and many other financial sites. Faizan has several years of experience analyzing the stock market, having worked as a data reporter for S&P Global Market Intelligence. He does not directly own the aforementioned securities.

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