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Stocks & ETFs to Love in the Valentines' Week

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The United States is going to be showered with love as 52% of its adults are planning to celebrate this Valentine’s Day. The pandemic couldn’t undermine the excitement among consumers as the expected decline (by 6 percentage points) in celebrators is negligible. Total spending would be a total of $21.8 billion, per NRF.

However, ways of celebrating the event have been changing. This has led to a decline in planned spending as consumers are spending $165 on average this year, about $32 less than last year, per the report. However, the day of love would be a day for business.Exchanging chocolates, greeting cards, flowers, gifting precious metals should remain at the front and in the center.

Let’s dive a little deeper:

Shopping Online Amid the Pandemic

Online purchasing would continue to rule as about 38% of consumers are planning to buy their Valentine’s gifts online this year — the highest in the survey’s history. ProShares Online Retail ETF (ONLN - Free Report) is a beneficiary of the trend. With all the celebration around, who can get forget Amazon (AMZN), a hot destination of online shopping.

Dollar Store: A Winner Too?

Visiting to department stores (29%), discount stores (28%), and local small businesses and specialty stores (17%) would also remain a trend. This is the first time consumers showed inclination for small businesses as one of the top five shopping destinations. Several discount retailers like Costco (COST), Ross (ROST), Dollar General (DG), Dollar Tree (DLTR) and Wal-Mart (WMT) have solid exposure to VanEck Vectors Retail ETF (RTH - Free Report) , making it a likely winner.

Pets Are No Less Than Sweethearts

Just as last year, 27% of those celebrating Valentine’s Day are planning to pamper their pets withgifts and other treats. The rate is up from 20% in 2019 and 17% in 2010. Naturally, this puts the spotlight on ProShares Pet Care ETF (PAWZ - Free Report) . The trend may make shares of pet food company Freshpet Inc. (FRPT - Free Report) purr in pleasure.

Forget Restaurants, Tap Staples

Less than 24% of consumers are planning an evening out, the lowest in the NRF survey’s history and down from 34% last year. Another 46% are actively sidestepping in-person gatherings. This results in a drop of $1.5 billion in spending on an evening out this year.

Even still, 41% say they intend to celebrate the event in their own home. So, restaurants may see a relatively lower footfall while demand for groceries and other food items should be higher. Consumer Staples Select Sector SPDR ETF (XLP - Free Report) may benefit from this trend.

Candies & Flowers Still Rule   

Since the pandemic can’t affect exchanging gifts like classic candies, cards and flowers, these businesses should see no adverse impact this year. The Hershey Company (HSY - Free Report) is likely to be one of the best bets this year. Shares of companies like 1-800 Flowers.Com Inc. (FLWS - Free Report) should also get a nudge-up.

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