ETFs & Stocks to Gain on Gift Ideas This Valentine's Day
The United States will be showered with love as 53% of its adults are planning to celebrate this Valentine’s Day. About 29% of the population will observe the occasion. Total spending would be a total of $25.8 billion (an average of $185.81 per person), per NRF. Per-person spending is higher by about $8 when compared to the average Valentine’s Day spending over the last five years.
Naturally, the day of love will translate 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 Eternal
About 57% of consumers are planning to buy candies, followed by greeting cards (40%) and flowers (39%). Zacks Rank #2 (Buy) Mondelez International MDLZ is likely to be one of the best bets this year. The company has about 8.64% exposure to First Trust Nasdaq Food & Beverage ETF FTXG and 5% focus on Invesco Dynamic Food & Beverage ETF PBJ.
Gifting Precious Metals Ageless
Gifting jewelry this Valentine’s Day has become more popular than ever before. Total spending on jewelry could touch a high of $6.4 billion, per NRF. Also, forget gifting precious metal in physical form, gift gold bullion ETF SPDR Gold Shares GLD. It is up 6.9% in the past one year. Gold is considered to be a safe haven and may gain strength if the stock volatility persists.
Gifting An Experience: A Booming Trend
About 32% of people is planning an evening out and they are likely to spend about $4.9 billion. In this regard, restaurant ETF AdvisorShares Restaurant ETF EATZ and experience ETFs like Defiance Hotel, Airline, and ALPS Global Travel Beneficiaries ETF JRNY should benefit. As far as stocks are concerned, Zacks Rank #2 hotel Hilton Grand Vacations HGV and restaurant Brinker International EAT are good bets.
Shopping Online A Fad Now
Online purchasing would continue to rule as about 40% of consumers are planning to buy their Valentine’s gifts online this year (up from 35% recorded last year). ProShares Online Retail ETF ONLN is a beneficiary of the trend. With all the celebration around, who can get forget Amazon AMZN, a hot destination of online shopping?
Buy Your Valentine A Clothing-Heavy ETF
About 21% of consumers find clothing as a good gift this Valentines Day. The Zacks Rank #2 (Buy)SPDR S&P Retail ETF XRT invests 22.34% of its basket in apparel retail. Hence, the fund may gain in the near term.
Dollar Store: A Winner Too?
Visiting department stores (33%) and discount stores (31%) would also remain in trend. Consumers will look for sales and promotions while celebrating Valentine’s Day this year. Several discount retailers like Zacks Rank #2 Costco COST may win from the trend and make VanEck Vectors Retail ETF RTH a winner.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Brinker International, Inc. (EAT) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
SPDR Gold Shares (GLD): ETF Research Reports
Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
SPDR S&P Retail ETF (XRT): ETF Research Reports
VanEck Retail ETF (RTH): ETF Research Reports
Invesco Food & Beverage ETF (PBJ): ETF Research Reports
Hilton Grand Vacations Inc. (HGV) : Free Stock Analysis Report
First Trust NASDAQ Food & Beverage ETF (FTXG): ETF Research Reports
ProShares Online Retail ETF (ONLN): ETF Research Reports
AdvisorShares Restaurant ETF (EATZ): ETF Research Reports
ALPS Global Travel Beneficiaries ETF (JRNY): ETF Research Reports
