Back to top

Image: Bigstock

Shop These ETFs & Stocks This Valentine's Day

Read MoreHide Full Article

It’s definitely going to be a love-filled year in the United States with consumers expected to expend amazing amounts on their significant others on Valentine’s Day. Data provided by the National Retail Federation (NRF) shows that the average spending will hit a record $196.31, up 21% from last year’s $161.96. Total spending should touch a record $27.4 billion, up 32% year over year.

About 55% of Americans plan to celebrate the day, up from 51% last year and down from a high of 63% hit in 2007. It clearly indicates improvement in the U.S. economic health. A growing economy and tightening labor market are probably encouraging consumers to splurge.

Needless to say, the Valentine’s Day record splurge will impact the world of investing or finance. Let’s take a look.

Is It Becoming a Millennials’ Event?

According to Bankrate’s 2020 Valentine’s Day survey, 70% Americans plan to spend on their partner this Valentine’s Day, with the average amount being $152. For millennials, the figure rises to $208, while Gen X intends to shell out about $160. This places Global X Millennials Thematic ETF MILN well for gains.

Pets Are No Less Than Sweethearts

Gifts for pets continue to be popular, with about 27% expected to pamper their pets, up from 20% last year and 17% in 2010. A sharp rise in spending on pet gifts has been noticed across all age groups, from just $450 million in 2010 to more than $1.7 billion in 2020. Naturally, this puts the spotlight on ProShares Pet Care ETF PAWZ  (read: An ETF to Capitalize on the Booming Pet Industry).

Some of the stocks that are likely to gain from this trend are Freshpet Inc. FRPT, PetMed Express Inc. PETS and PetIQ Inc. PETQ.

Go Beyond Things, Gift an Experience

About 28% of consumers are planning a gift of experience for Valentine’s Day, while nearly half of millennials aged 25 to 34 are adopting the concept. Around 34% of people will spend $4.3 billion on an evening out. Invesco Dynamic Leisure And Entertainment ETF PEJ is likely to benefit from this (read: Wining & Losing ETF Areas on Coronavirus Outbreak).

Restaurants companies are expected to gain as well. Investors can take a look at Zacks Rank #3 (Hold) Denny's Corporation DENN and Zacks Rank #2 (Buy) Brinker International Inc. EAT.

Candies Are All-Time Favorites         

About 52% of consumers will go for candies and are expected to spend $2.4 billion on it. Candies, in any case, are much in demand during this period. The Hershey Company (HSY - Free Report) is likely to be one of the best bets this year. It belongs to a favorable Zacks industry (placed at the top 1% of 250+ industries).

Who Forgets Jewelry?

About 21% shoppers plan to spend $5.8 billion on jewelry. However, with Tiffany & Co. TIF, having a Zacks Rank #4 (Sell), it is better to bet on gold bullion ETF SPDR Gold Shares GLD. The latest coronavirus scare made precious metal investing more lucrative this time around owing to their safe-haven appeal.

Want key ETF info delivered straight to your inbox?

Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.  Get it free >>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Hershey Company The (HSY) - free report >>