Valentine’s Day is not just a time for romance; it’s also an opportunity for certain stocks to shine as consumers splurge on chocolates, flowers, and jewelry.
Historical data from the National Retail Federation (NRF) shows that Valentine’s Day spending has grown significantly over the years, reaching a projected $27.5 billion in 2025, making it the third-highest in the survey’s history.
Here’s a deeper look at three stocks poised to gain from the Valentine’s Day rush:
1. The Hershey Company (HSY)
Hershey is synonymous with Valentine’s Day chocolates, including its iconic “Kisses.” The company’s stronghold in the confectionery market positions it well to capitalize on the seasonal surge in chocolate sales.
- Key Financial Insights:
Hershey’s stock is rated “Bullish” by analysts, with a 12-month target price of $172.89. Despite recent challenges, including a one-year capital loss of 17.34%, Hershey has delivered top-quartile total returns and dividend yields over the past five years. - Valentine’s Day Impact:
Hershey benefits directly from increased chocolate purchases, which account for a significant portion of the $6.5 billion Americans spend on candy during this season.
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2. 1-800-Flowers.com Inc (FLWS)
Flowers are the quintessential Valentine’s Day gift, and 1-800-Flowers.com stands out as a market leader in floral delivery. The company’s online platform simplifies last-minute gifting, boosting seasonal sales.
- Key Financial Insights:
FLWS’s stock, currently trading at $8.24, has shown a five-year revenue growth of 46.68%. Analysts have mixed views, with a “Slightly Bearish” rating, noting its positive cash flow but challenges with earnings growth. - Valentine’s Day Impact:
Valentine’s Day drives a massive influx of floral orders, especially for roses and same-day delivery options. This surge allows the company to maximize revenues in its Consumer Floral & Gifts segment.
3. Signet Jewelers Ltd (SIG)
Jewelry remains one of the top gifting categories for Valentine’s Day, making Signet Jewelers a major beneficiary. Its brands, including Kay Jewelers and Zales, are household names for romantic occasions.
- Key Financial Insights:
SIG is rated “Slightly Bullish,” with a 12-month target price of $94.27, offering significant upside potential from its current price of $54.36. Despite a one-year capital loss of 48.15%, it boasts strong earnings and dividend growth. - Valentine’s Day Impact:
Jewelry accounts for $6.5 billion in Valentine’s Day spending, with Signet leading in engagement and anniversary-related purchases.
A Broader Perspective on Spending Trends:
The historical data reveals that spending on Valentine’s Day has climbed steadily over the past decade, driven by consumer enthusiasm for meaningful and high-value gifts like chocolates, flowers, and jewelry. Retailers catering to these preferences have seen predictable seasonal boosts, and these trends are likely to continue as spending hits $27.5 billion in 2025.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
