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Stocks & ETFs to Fall for in the Valentines' Week

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The United States will be showered with love as 53% of its adults are planning to celebrate this Valentine’s Day. The pandemic has not dampened the excitement among consumers. About 27% of the population who are not celebrating, still plan to observe the occasion. Total spending would be a total of $23.9 billion (up from $21.8 billion in 2021), per NRF.

January data from Google Search reveled searches for “Valentine’s Day gifts for her” were up 300% year over year and searches for “best Valentine’s Day gifts for him” were up 200%.  Consumers are spending $175.41 on average this year, up about 6% from last year, per the report. Naturally, the day of love translates into a great 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:

Candies, Cards & Flowers Continue to Remain Ageless  

Since the pandemic can’t affect exchanging gifts like classic candies, cards and flowers, these businesses should see no adverse impact this year. About 56% of consumers are planning to buy candies, followed by greetings cards (40%) and flowers (37%). 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.

Who Forget Gifting Diamonds to His Valentine?

Apart from candies, flowers or greeting cards, gifting jewelry this Valentine’s Day has become popular than ever before. Total spending on jewelry could touch a high of $6.2 billion, per NRF. About 30% of men (up from 27% in 2021) and 14% of women (up from 10% in 2021) are planning to buy jewelry. Spending projections have also increased as per person spend for men went up from $59 in 2021 to $75 while per person spend for women doubled to $24. Zacks Rank #2 (Buy) Brilliant Earth Group (BRLT - Free Report) is a great pick here.

Gifting An Experience: A Booming Trend

About 41% (up from 33% in 2021) is planning an evening out while 41% plan on gifting an experience, up from 36% last year. In this regard, restaurant ETF AdvisorShares Restaurant ETF (EATZ - Free Report) and experience ETFs like Defiance Hotel, Airline, and Cruise ETF (CRUZ - Free Report) and ALPS Global Travel Beneficiaries ETF (JRNY - Free Report) should benefit.

 Shopping Online Amid the Pandemic

Online purchasing would continue to rule as about 41% 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 - Free Report) , a hot destination of online shopping.

Dollar Store: A Winner Too?

Visiting department stores (32%), discount stores (28%), and local small businesses and specialty stores (18%) would also remain a trend. Consumers have been showing an inclination for small businesses as one of the top five shopping destinations. Several discount retailers like Costco (COST - Free Report) and Dollar Tree (DLTR - Free Report) may win from the trend and make VanEck Vectors Retail ETF (RTH - Free Report) a winner.