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Stocks for Mom: The Knot

I love you, Mom.

So why is your favorite son -- your only son, as my two sisters would clarify -- giving you shares of online wedding planner The Knot (Nasdaq: KNOT  ) this year? It's not because I think that you should leave Dad. He'd go bonkers without you. But you have nine grandchildren now, ages one to 18. It's fair to say that you will be attending a number of their weddings over the next decade or two.

That's where The Knot comes in.

Nervous grooms-in-waiting and brides-to-be flock to TheKnot.com to plan their special day. Unless you happen to be a wedding singer or banquet hall that's turning away business because you're booked solid on word of mouth, you're likely sorely tempted to pay TheKnot.com to be featured on its site.

It's a great business. You can't ask for a better market than young 'uns about to get hitched, ready to spend a bundle of money on the wedding to end all weddings. The Knot's appeal isn't just about matrimonial one-upmanship. It's about nearly newlyweds turning to a proven site, with active referrals and a lively forum, to set their union apart from the other weddings they've attended.

The Knot isn't just about weddings. With 2.1 million unique monthly visitors, the company has expanded its reach over the years. At first it was simply a matter of online bridal registries to draw in invited guests. Now the company is taking advantage of its established brand to move further up and down the courtship cycle. From acquiring a pair of dating sites to launching TheNest.com for young married couples, it won't be long before The Knot is selling everything from diapers to caskets to make sure it's got the public covered.

I'm kidding about that last point, Mom. In reality, The Knot is a focused company with a powerful appeal for young adults at their most fiscally unguarded moments. The Knot hasn't abused that trust, and it has paid off.

Last year, revenue rose by 24% to hit $51.4 million. Net income increased by more than 200%, as the company erupted from being merely profitable to become a bona-fide growth stock. The golden brand has opened doors for the company, including a content-streaming deal with Comcast (Nasdaq: CMCSA  ) and a credit card partnership with American Express (NYSE: AXP  ) .

If I can also be allowed a selfish moment, Mom, The Knot has also been a brilliant pick of mine in the Rule Breakers newsletter service. I recommended the stock to subscribers back in January when it was trading at $11.81. It has gone on to climb more than 50% higher.

Is that love? No way, Mom. That's what I save for you and the rest of my family.

Happy Mother's Day!

The Knot has risen 57% higher since being recommended to Rule Breakers newsletter service subscribers earlier this year. You can read the full recommendation and dig into the other market-crushing picks with a free 30-day trial.

Want to see what other stocks we're recommending for Mom this year? Check out the full list.

Rick has only been married once -- and once should be enough for him. He recommends The Motley Fool's Guide to Couples and Cash as required relationship reading and he does not own any of the shares mentioned in this story. The Fool has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.


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