Stocks You May Love on Valentine's

vday_box.jpg

Valentine's day is less than one week away. Historically, the U.S. major indexes have not shown much love on Valentine's Day nor the week after. The S&P has fared worst, with an average loss of -0.13% on Valentine's Day itself. In the week following Valentine's, the NASDAQ Composite has fared worst amongst the three major indexes, averaging a decline of -0.5%. There are, however, some companies that may benefit from Valentine's spending.

Dow since 1898:

  • Valentine's Day:
    • Avg. loss of -0.003% (almost flat)
    • Up 51% of the time, when it gained an avg of 0.66%, down 49% when it fell an avg of -0.68%
    • Biggest gain of 2.05% in 2003
    • Biggest decline of -4.3% in 1933
  • 1 Week After:
    • Avg. loss of -0.05%
    • Up 51% of the time, when it gained an avg of 1.5%, down 49% when it fell an avg of -1.7%
    • Biggest gain of 6.93% in 1899
    • Biggest loss of -4.81 in 1898

S&P since 1928:

  • Valentine's Day:
    • Avg. loss of -0.13%
    • Up 41% of the time, when it gained an avg of 0.65%, down 56% when it fell an avg of -0.7%, and 3% unchanged in 1934 & 1944
    • Biggest gain of 2.14% in 2003
    • Biggest decline of -5.11% in 1933
  • 1 Week After:
    • Avg. loss of -0.30%
    • Up 46% of the time, when it gained an avg of 1.13%, down 54% when it fell an avg of -1.5%
    • Biggest gain of 4.13% in 1974
    • Biggest loss of -5.7% in 1933

NASDAQ Composite since 1972:

  • Valentine's Day:
    • Avg. gain of 0.16%
    • Up 64% of the time, when it gained an avg of 0.68%, down 36% when it fell an avg of -0.76%
    • Biggest gain of 2.14% in 2003
    • Biggest decline of -5.11% in 1933
  • 1 Week After:
    • Avg. loss of -0.30%
    • Up 46% of the time, when it gained an avg of 1.13%, down 54% when it fell an avg of -1.5%
    • Biggest gain of 2.6% in 2001
    • Biggest loss of -1.7% in 2008

Despite marginal average losses in the US major Indexes during Valentine's and a week later, here are some companies that may share the love on this special day.

1) Confectioners:

pinkMM.jpg
  • Hershey sells its famous Kisses which are a Valentine’s classic
  • Cadbury is the world’s largest confectioner by sales and is being bought by Kraft for $18.4 billion
  • Godiva was sold to Yildiz Holdings for $850M in Dec. 2007
  • Mars, Inc. the makers of M&M’s is privately held
  • Nestle SA is the world’s biggest food company
Valentines Roses.jpg
AP

2) Florists:

  • 1-800-FLOWERS.com
  • FTD Group

Perfume, Lingerie, and more

3) Perfume Manufacturers:

  • International Flavors and Fragrances Inc.
  • Parlux Fragrances Inc.
  • Inter Parfums Inc.
  • Elizabeth Arden Inc.
  • Estee Lauder Companies Inc.
  • Revlon Inc.

4) Specialty Retailers:

  • Teddy Bears
    • Build-A-Bear Workshop
    • Vermont Teddy Bear is privately held
  • Lingerie
    • Limited Brands Inc. - owner of Victoria’s Secret
    • Frederick’s of Hollywood
    • The PajamaGram Company was taken private by the Mustang Group in May 2005 for $6.50 per share.

Jewelery, Cards and More

5) Jewelers:

  • Tiffany’s
  • Blue Nile Inc.
  • Harry Winston
  • Zale Corp.
  • Ice.com is currently privately held with investments by Polaris Venture Partners and Ignition Partners.

6) Card makers:

  • American Greetings
  • CSS Industries

7) Restaurants

  • Morton’s Restaurant Group Inc.
  • Ruth’s Chris Steak House Inc.
  • Landry’s Restaurants
  • P.F. Chang’s
  • Darden Restaurants Inc.

Comments? Send them to bythenumbers@cnbc.com

bythenumbers.cnbc.com