3 Top Valentine’s Day Stocks to Buy for Short-Term Gains

Valentine’s Day is often linked to a positive effect on the stock market’s performance, with a general trend of short-term gains seen on the Day. The mood uplift could be related to the happy feelings Valentine’s Day fosters. Despite being regarded as a holiday, the stock market goes uninterrupted, which makes now a great time to look into some Valentine’s Day stocks to buy.

Americans are expected to spend a staggering $14.2 billion on gifts for Valentine’s this year. However, with inflation still at high levels, consumers prefer more economical options such as cards and chocolates instead of luxurious items like jewellery or trips.

The shift in consumer spending habits is advantageous for several businesses. This makes now an excellent period to consider which Valentine’s stocks to buy.

Hershey (HSY)

Hershey's milk chocolate pieces on a white plate on top of a wooden tableSource: shutterstock.com/VG Foto

Hershey (NYSE:HSY) could be one of the Valentine’s stocks to buy for short-term gains. Famous for its iconic “Kisses,” the company looks forward to a surge in sales. Despite its financial performance slightly missing Q4 earnings, management decided to raise dividends by a notable 15%.

At present, Hershey is trading at a price-to-earnings ratio (PE) of 20.9 and a forward dividend yield of 2.5%. The company boasts a variety of chocolate and sweet products, from high-end to more economical choices. The variety might provide them an extra edge considering the current economic environment. In fact, 92% of Americans are said to buy chocolates or sweets for this year’s Valentine’s Day celebrations.

Match Group (MTCH)

MTCH stock: the Match group logo on a computer screen with a phone displaying its siteSource: T. Schneider / Shutterstock

Tinder’s parent company, Match Group (NASDAQ:MTCH), could be the second choice of Valentine’s stocks to buy. MTCH has survived quite a challenging period, as it plunged 80% since the recent peak. Higher inflation has also constrained consumer spending power, impacting the number of subscribers. However, the latest financial results indicate the business may be stabilizing finally. Valentine’s Day may be the opportunity to propel the stock further.

Despite facing headwinds, Match Group maintains a relatively low PE of 16 when considering a tech company with robust cash generation from the high margins derived from its apps. For context, the S&P 500 index currently stands at 20, while internet content companies average 37. Overall, signs of stabilization could see investor sentiment gradually improve. This makes Match Group a good candidate when pondering which Valentine’s stocks to buy.

Shopify (SHOP)

Shopify on the phone display.Source: Burdun Iliya / Shutterstock.com

As budget-conscious shoppers seek alternative gifts, Shopify (NYSE:SHOP) could be included in Valentine’s stocks to buy, especially since its earnings day approaches. The company will report its Q4 and full-year 2023 results on February 13.

Shopify has seen immense sales growth recently, with volumes soaring 22% in Q3 2023. Profits are rising even faster as SHOP leverages its subtle market share to reach a more significant portion of its total addressable market (TAM). Last year, the company also achieved positive free cash flow, improving its operational efficiency.

Following a busy year-end holiday in December, analysts expect Shopify to report a 343% increase in EPS for Q4 2023, with revenues up 19% to $2.07 billion. Estimates have also been revised upwards in the countdown to the earnings release. There will likely be a focus on 2024 guidance for clues on whether the company can sustain this momentum. With strong sales growth and increasing profit margin, Shopify rounds up our list of potential Valentine’s Day stocks.

On the date of publication, Stavros Tousios did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Stavros Tousios, MBA, is the founder and chief analyst at Markets Untold. With expertise in FX, macros, equity analysis, and investment advisory, Stavros delivers investors strategic guidance and valuable insights.

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