Cupid isn't known for his investing acumen -- there's not much that we could construe as romantic about buying stocks.
But if you're in the mood for making money as much as you are in the mood for love, you can easily find plenty of great picks. Here are three perfect stocks to buy this Valentine's Day.
1. 1-800-Flowers.com
Let's start with a stock that should make a lot more money on Feb. 14 than it does on other days of the year. 1-800-Flowers.com (FLWS 0.30%) operates an e-commerce platform that enables customers to buy gifts to send to others.
NASDAQ: FLWS
Key Data Points
As you can readily guess from its name, flowers make up a key part of 1-800-Flowers.com's business. However, the company also sells baked goods, chocolates, cookies, gourmet foods, Moose Munch snacks, personalized gifts, popcorn, and even seafood.
1-800-Flowers.com acquired SmartGift last year, a move that boosts its opportunities in corporate and business-to-business gifting. It continues to invest in automation that should reduce costs, as well as generative AI apps that help customers.
To be sure, 1-800-Flowers.com has experienced a rough go over the last couple of years. Shares are down nearly 70% below the peak set in mid-2021. However, I think the stock is poised for a turnaround, with inflation moderating, a resilient economy, and the prospects of interest rate cuts later this year.
2. Hershey
Valentine's Day is a big deal for another company, too. Hershey (HSY +0.55%) holds the No. 1 spot in the U.S. confection market. It's delivered sweet returns for investors over the last five years as well, with a total return of nearly 97%.
Unfortunately, the last 12 months haven't been as great. Hershey stock is down almost 19% despite topping Wall Street earnings estimates in all four quarters of 2023.
NYSE: HSY
Key Data Points
The main problem for Hershey is that cocoa and sugar prices remain high. These increased commodity costs are expected to weigh on the company's earnings in 2024. However, CEO Michele Buck noted in the company's fourth-quarter conference call that Hershey has "a long history of successfully adapting to periods of rapid change and uncertainty." She added that the challenges presented by higher cocoa and sugar prices are "no different."
Patient investors have an opportunity to take advantage of Hershey's lower-than-usual valuation. They'll also be paid to wait for commodity prices to come down. Hershey offers a dividend yield of over 2.8% and has paid a dividend for an impressive 376 consecutive quarters.
3. Eli Lilly
That said, eating all of those Valentine's Day goodies can increase customers' waistlines. That's where Eli Lilly (LLY +0.80%) comes into play. The company won U.S. regulatory approval in November 2023 for Zepbound in helping people lose weight.
NYSE: LLY
Key Data Points
Zepbound could be the most potent weight-loss drug yet. It raked in nearly $176 million in less than one month on the market. Analysts at Morgan Stanley predict it will make $2.2 billion this year.
And that's just the beginning. Some think that tirzepatide, the active ingredient in Zepbound and its sibling product, type 2 diabetes drug Mounjaro, could become the best-selling drug ever.
Lilly has other growth drivers, too. Sales continue to soar for cancer drugs Verzenio and Tyvyt. The company has solid performers with autoimmune-disease drugs Olumiant and Taltz. Its diabetes franchise is also humming along, with Mounjaro and Jardiance enjoying strong momentum.
More blockbusters could be on the way. Lilly expects regulatory approvals for Alzheimer's disease drug donanemab and atopic dermatitis drug lebrikizumab this year. Its late-stage pipeline also looks promising, featuring candidates such as obesity drugs retatrutide and orforglipron.
