Friday, February 11, 2022
Walking down the Wall Street this Valentine’s (5 Stocks that demand your attention)
Valentine’s is all about celebrating your bond with ‘the one.’ This year, Valentine’s Day spending is expected to reach $23.9 billion, up 9.6% over 2021.
This marks the second-highest year on record, as per the National Retail Federation (NRF) survey data.
The fervour of consumer spending during 2021’s November-December holiday season is expected to continue into 2022.
It must be noted in this regard that the retail sales during November-December holiday season of 2021 grew on a 14.1% year-over-year basis to $886.7 billion, surpassing the NRF’s forecast.
Americans are expected to make the day count by spending more on significant others to make them feel special.
The shoppers, on an average, expect to spend $175.41 per person on Valentine’s Day gifts, up from $164.76 in 2021. The increase comes as shoppers plan to be more generous to dear ones or spouses.
While the art of gifting has evolved to become more thoughtful and customized more than ever before, flowers and candies remain popular. The most popular gift items this Valentine’s Day continue to be Candy (56%), Greeting Cards (40%) and Flowers (37%).
Approximately, 31% of surveyed respondent’s intend gifting an “evening out,” up from 24% in 2021, which remains a major takeaway. Total spending on an ‘evening out’ is estimated at $4.3 billion, up from $2.8 billion in 2021.
Moreover, according to NRF survey, 22% choose to gift jewellery to their special someone.
Demand for experience-based gifts, including tickets to a sporting event or concert, has climbed back to pre-pandemic levels, as Omicron fears subside. 41% of surveyed respondents said they would “love to receive a gift of experience,” up from 36% in 2021.
In this backdrop, these five stocks are well positioned to make the most of the gifting fervour this Valentine’s:
Apple makes it first to the list on elevated experience it provides to the users. The tech giant has a loyal customer base.
Moreover, Apple has unveiled a new Valentine's Day 2022 gift guide. Many products are thoughtfully designed with free engraving for a customized touch, including the iPhone, iPad, Apple Pencil, AirPods, and AirTag.
Moreover, Apple gift cards can be used to gift products and accessories across the Apple Store, including Apple Music, Apple Fitness+, Apple TV+, Apple Arcade, Apple News+, iCloud+ storage, to mention a few.
In its first quarter fiscal 2022 for the period ending Dec 25, Apple’s revenues increased a record 11% YoY to $123.9 billion, on strength in new products and services, defying supply chain woes.
LVMH Moet Hennessy Louis Vuitton SE (LVMUY)
Can you ignore LVMH — the world's largest luxury goods conglomerate — while talking about Valentine’s? Yes, that was a rhetoric question, indeed!
Apart from Louis Vuitton, the conglomerate owns luxury brands spanning Christian Dior, Sephora, Benefit Cosmetics, Bvlgari, to Starboard Cruise, to name a very few.
Moreover, the acquisition of Tiffany in the beginning of 2021, augmented LVMH’s ‘Watches & Jewelry’ division, complementing 75 distinguished Maisons.
Further, according to data from NRF survey, total spending on jewelry is estimated at $6.2 billion this Valentine’s, up from $4.1 billion in 2021. With Tiffany in the umbrella, LVMH is well poised to capitalize on this rising spend as “Diamonds are a girl's best friend, Diamonds are forever.”
Mondelez International (MDLZ)
Mondelez portfolio includes brand names like Cadbury, Toblerone and Milka chocolates; Oreo biscuits; Halls candies; to mention a few.
The company has innovatively expanded its chocolate-focused products to choco-bakery (biscuits), soft cakes and spreads.
Mondelez is leveraging product differentiation beyond traditional chocolates to include Pralines & Dark chocolate in its portfolio, as health-focused gifting of chocolates has gained popularity.
The company reported revenue growth in its fourth quarter 2021 for the period ending Dec 31. Net revenues increased 4.9% to $7.66 billion backed by organic net revenue growth of 5.4%.
Estée Lauder (EL)
The cosmetics giant — Estee Lauder — offers skincare, makeup, fragrance, and haircare products.
The company holds license arrangements for brands including Tommy Hilfiger, and Michael Kors.
As makeup makes a solid comeback on receding Omicron fears and higher vaccination rates, MAC business is poised for solid recovery.
Meanwhile, skincare category continues to be an outperformer. This positions La Mer and Clinique brands well to report stellar gains.
These factors make $EL stock worth your attention this Valentine’s Day, while you take a walk down the Wall Street.
The company recently reported stellar 2022 fiscal second quarter results for the period ending Dec. 31. Net sales were up 14% YoY to record $5.54 billion, driven by growth across every region and product category.
Valentine's Day is nearly incomplete without flowers and 1-800-FLOWERS.COM is a key beneficiary of this trend.
The company is proficient with consumer floral gifts, gourmet foods and personalized gift baskets, for various occasions.
1-800-FLOWERS.COM deserves a mention in the list as it is enabling Valentine's revellers to surprise and impress their dearest with beautiful mixed bouquets and classic roses.
The company recently reported stellar 2022 fiscal second quarter results for the period ending Dec. 26. Revenue was up 7.5% YoY to record $943 million.
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