9 Stocks for Valentine's Day
Put a little love in your portfolio with these shares.
Valentine's Day should be a burst of cheer amid all the economic gloom. The National Retail Federation's spending survey found that Americans plan to put up a total of $15 billion in the name of Cupid this year, or $103 per person. Granted, that's $20 less than last year, but it's still a far cry from macaroni-necklace territory.
So, assuming you aren't watching the stock market instead of catering to your beloved on the 14th -- and you have no excuse because it's a Saturday -- where can you invest before then to put yourself on the receiving end of that $15 billion? By the way, most of these stocks are trading for much less than they did a year ago, which is no surprise.
Although Valentine's Day is often called a "Hallmark holiday," that ubiquitous supplier of corny cards is privately owned. American Greetings, however, is publicly traded and stands to sell a big bunch of the 190 million Valentine's Day cards Americans will be buying this year. The shares (symbol AM) are in the bargain bin -- at $4.76, that's only six times estimated earnings of $0.75 for the fiscal year ending February 2010.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The stock, which went for $20 a year ago, is still reeling from a gigantic loss in the quarter that ended in November and the company's downgrade to junk status by Standard & Poor's a few weeks ago. But a share-buyback program and an 9.3% dividend yield at this price -- assuming the dividends survive -- offer some love while you wait for better times.
February 14 is the most important day of the year for florists. There's a good chance that many among the one in three Americans who will be purchasing flowers will shop at 1-800-Flowers.com. The online florist is luring thrifty lovebirds with a 25% discount on early deliveries and with ideas for gifts for less than $40.
In fiscal 2008, which ended in June, 54% of the company's $919-million sales came from selling flowers to individuals. 1-800-Flowers.com also sells to other florists and owns gift-shopping businesses, such as confectioner Fannie May and basket wholesaler DesignPac Gifts. Profits may be wilting, but they haven't dried and died. Its adjusted earnings for the second quarter, which ended in December, came in at $0.23 per share, or 21% lower than last year. At $2.31, the stock (FLWS) trades at 14 times estimated profits of $0.16 per share for the fiscal year ending in June.
If you're headed online for gifts, chances are that Amazon.com will be one of your first stops. The e-tail powerhouse has been a rare bastion of strength in retailing. Earnings per share for the fourth quarter, which ended in December, rang up at $0.52 -- tearing up analysts' average estimate of $0.39. Amazon's massive catalog and deals on shipping keep customers coming back, while buzz over the second-generation Kindle has investors on the edge of their seats. At $63.31, the stock (AMZN) trades for 43 times estimated 2009 profits per share of $1.48.
More than 8 billion candy "conversation hearts" will hit stores this year, but all that sugar is empty calories to your portfolio -- hearts maker New England Confectionary Company is privately owned. But you could pocket some profits on the 1.5 billion chocolate Kisses that will sell for V-day this year through shares of The Hershey Company. The candy-bar and peanut-butter-cup maker seems to be benefiting as consumers trade down from boutique-label imported chocolates. Hershey, one of the rare blue-chip stocks that are up from a year ago, posted strong results for its fourth quarter, boosting profits per share by 9%, to $0.59. At $35.80, the stock (HSY) trades for 18 times estimated 2009 earnings per share of $1.95.
While some of us are popping chocolates, others will pop the big question. That's sweet for Tiffany & Co., which earns nearly 20% of its revenues from engagement rings and wedding bands. Tiffany is offering free shipping and engraving for Valentine's Day gifts -- a rare deal that's presumably intended to overcome lousy sales at the Christmas season. Tiffany's sales declined 21%, to $687 million, in November and December, from the same period in 2007. At $21.56, Tiffany stock (TIF) trades for half what it did one year ago. It's at 11 times estimated fiscal 2010 profits of $1.97 per share.
But Blue Nile, with its emphasis on a low-pressure, value-minded selling process, could sway grooms-to-be who cannot afford a blue box. Through Web sites targeting the U.S., the United Kingdom and Canada, Blue Nile offers a wide variety of jewelry styles at low prices. Blue Nile (NILE) has even more riding on the spirit of the holiday than Tiffany does. Nearly 70% of its sales are engagement rings. At $22.49, the stock trades for 28 times estimated 2009 profits per share of $0.80.
Nothing says "amorous" like a pink-striped bag from Victoria's Secret. The lingerie retailer accounted for 62% of sales at Limited Brands in fiscal 2008, which ended in January. Sales at the undergarments chain came in at $5.6 billion for the year-flat from the year before. Limited Brands hasn't yet reported profits for its fourth quarter, but analysts are expecting a skimpy $0.64 per share, which would be a 32% decline from the same period last year. Not so skimpy, however, is the stock's 6.8% dividend yield. At $8.24, the shares (LTD) trade for nine times estimated fiscal 2009 profits per share of $0.93.
Last but not least, Pfizer (PFE) and Eli Lilly (LLY) could each give your portfolio a Valentine's lift. Sales of Viagra and Cialis are mere drops in the pharmaceutical giants' respective buckets. But you should take any excuse to adore these stocks. After all, demographic trends argue indisputably for the drug industry's long-term sales growth, and these stocks are cheap. At $14.07, Pfizer shares trade for seven times estimated 2009 earnings per share of $2.10. Eli Lilly shares, at $36.94, trade for nine times estimated 2009 earnings per share of $4.15. Both pay generous dividends, but Pfizer just cut its payout after buying Wyeth.
-
Nasdaq Leads as Tech Stages Late-Week Comeback: Stock Market TodayOracle stock boosted the tech sector on Friday after the company became co-owner of TikTok's U.S. operations.
-
Disney’s Risky Acceptance of AI VideosThe Kiplinger Letter Disney will let fans run wild with AI-generated videos of its top characters. The move highlights the uneasy partnership between AI companies and Hollywood.
-
Ask the Editor: Itemized DeductionsAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on itemized deductions claimed on Schedule A of Form 1040
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have TodayHome Depot stock has been a buy-and-hold banger for truly long-term investors.
-
What the Rich Know About Investing That You Don'tPeople like Warren Buffett become people like Warren Buffett by following basic rules and being disciplined. Here's how to accumulate real wealth.
-
If You'd Put $1,000 Into Bank of America Stock 20 Years Ago, Here's What You'd Have TodayBank of America stock has been a massive buy-and-hold bust.
-
If You'd Put $1,000 Into Oracle Stock 20 Years Ago, Here's What You'd Have TodayORCL Oracle stock has been an outstanding buy-and-hold bet for decades.
-
How to Invest for Rising Data Integrity RiskAmid a broad assault on venerable institutions, President Trump has targeted agencies responsible for data critical to markets. How should investors respond?
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have TodaySherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
