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Highlights
- Generally, stocks of companies offering flowers, presents, and chocolates are expected to gain around Valentine’s Day.
- The boom in gifting activity positively affects the profitability of these companies.
With Valentine’s Day around the corner, romance is in the air for couples, while investors are looking for opportunities to capitalise on the moment and make money. Around Valentine’s Day, people generally buy flowers, presents, and chocolates to make their loved ones feel special. Candy, flowers and jewellery have been traditionally the hottest gifts across the world.
This boom in gifting activity positively affects the profitability of the companies, which offers these products and services. Therefore, investors may like to invest in these companies to cash on the opportunity.
Experts at Barclaycard said that around Valentine’s Day even retailers and restaurants can get a boost as 28% of Britons were keen on celebrating the occasion and may increase their budget this month to purchase chocolates and jewellery.
The Barclaycard survey also found that 30% of Britons were planning to eat out at a restaurant, giving the much-needed push to the hospitality sector.
Let’s take a look at 3 UK stocks which may gain around Valentine’s Day.
Hotel Chocolat Group plc (LON: HOTC)
UK-based chocolatier and cocoa grower Hotel Chocolat Group plc is the only business in the UK, which grows cocoa on its own farm. According to its latest trading update released on 18 January, there was a 37% increase in its total group revenue in Q2 as compared to last year, and 63% increased as compared to 2020. The company has a bright outlook and expects to trade ahead of the market expectations.
The market cap of the FTSE AIM 100 Index constituent stood at £631.48 million, and it has given a return of 33.76% to its shareholders over the last one year as of 8 February 2022. Hotel Chocolat plc’s shares closed at GBX 460.00 on 8 February 2022.
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Mondi Plc (LON: MNDI)
UK-based packaging and paper group Mondi plc mainly operates in Europe, North America, Russia, and South Africa. Amid the rising concerns about sustainability, the company published an update in early January regarding its plans to transition to Net-Zero by 2050 in line with the UK Government’s goals. Mondi has been making heavy investments to reduce the GHG emissions caused by its operations.
The market cap of the FTSE100-listed company stood at £9,014.31 million, and it has given a return of 3.31% to its shareholders over the last one year as of 8 February 2022. Mondi plc’s shares closed at GBX 1,856.50 on 8 February 2022.
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Marks and Spencer Group Plc (LON: MKS)
Leading UK-based globally operating retailer Marks and Spencer Group plc mainly sells clothing, home, and food products. However, it also offers one of the best flower delivery services in the UK and offers presents and gifts to buy for your loved ones. As per its Christmas trading statement released in mid-January, M&S has reported a strong revenue growth, both in the UK as well as internationally.
The market cap of the FTSE250-listed company stood at £3,820.54 million, and it has given a return of 45.34% to its shareholders over the last one year as of 8 February 2022. Marks and Spencer Group plc’s shares closed at GBX 195.05 on 8 February 2022.
