3 Companies that cannot but Rise after Valentine

3 Companies that Cannot but Rise after Valentine's Day

3 Companies that Cannot but Rise after Valentine’s Day

It seems we Americans love being in love, so much so that we are willing to pay big money for it. In fact, we celebrated Valentine’s Day last week to the tune of $20 billion. If you are wondering where the money went we found a handy pie chart to show you last year’s breakdown. The average consumer spent over $200 on flowers, candy, jewelry and dining out, not to mention cozy romantic getaways. 

 

 

Data from IBIS World, numbers in billions of dollars

From the pie chart above, it does not take a rocket scientist to deduce that dining out on Valentine’s Day garnered almost half of the money spent on the holiday. However, I am more interested in bringing to your attention three emerging growth companies that will benefit from your Valentine’s Day largesse.

The first company is the Rocky Mountain Chocolate Factory, Inc. (NASDAQ: RMCF). The company has a market cap of $71.2 million and is currently trading at $12.42. RMCF specializes in the making of a range of chocolate candies and other confectionery products. Investors can expect Rocky Mountain Chocolate Factory to benefit on the strength of $2.8 billion in candy and chocolate purchases made in 2023 on Valentine’s Day.

The second emerging growth company is 1-800-Flowers.com Inc. (NYSE: FLWS). The company has a market cap of $282 million and is trading up at $4.35. FLWS delivers fresh flowers and a large selection of gift items ranging from plush animals to balloons. The Company operates in three segments: Consumer Floral, Gourmet Food and Gift Baskets, and its BloomNet Wire Service Expect company growth based on the $1.8 billion that Americans spent on flowers last Valentine’s Day.

Finally, there is American Greetings Corporation (NYSE: AM). The company has a market cap of $525.82 million and is trading at $16.62. The pie chart above shows greeting cards commanding $0.8 billion in sales last Valentine’s Day. AM manufactures and sells greeting cards, gift packaging, party goods, stationery and giftware in the United States, Canada, the United Kingdom, Australia and New Zealand. Do not be surprised to find American Greetings sitting comfortably in the next couple of weeks as it reaps the benefit of millions of ephemeral heartfelt greetings exchanged between loved ones. 

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  • meikoacebo

    I like RMCF even if it’s valentine. The consistent growth in earnings is definitely a good investment thesis for me.

    • entresean

      I think, in this case, you should be more particular about how its stock is fairing. Don’t you think?

  • Innovictor

    A little here and a little there, and before you know it we have spent almost $3 billion of candies. Good for RMCF investors

    • entresean

      Spot on Victor. I like the a little here and there analysis. Only savvy investors will understand that. RMCF is definitely a stock to watch.

  • Lillie

    Candy is not cyclical. RMCF sells year round. Many stocks rise during and after Valentine’s Day. Having said that, interesting article

  • entresean

    That they are “valentine special” indicates that they are short-term play. Enter some months before valentine then sell after valentine. Very much like real estate.

    • Lillie

      exactly!

  • mrego123

    FLWS was a great buy if you bought it before Valentines’ Day but now the breakout appears to be false as the uptrend has stalled and could be looking to test the former resistance for support.