Healthy Chocolate May Help Chocolate Stocks

by Fred Fuld III

The demand for chocolate is currently on the rise. The global chocolate market is projected to grow at a CAGR of 4.98% from 2022 to 2029, reaching an estimated value of USD 67.88 billion by 2029.

There are a number of factors driving the growth of the chocolate market, including:

Increasing population growth and urbanization. The global population is expected to grow to 9.7 billion by 2050, and the majority of this growth will occur in urban areas. This will create a larger market for chocolate, as urban consumers are more likely to consume chocolate than rural consumers.

Rising incomes. As incomes rise, consumers are more likely to spend money on luxury goods, such as chocolate. This is especially true in developing countries, where the middle class is growing rapidly.

Increased awareness of the health benefits of chocolate. Chocolate has been shown to have a number of health benefits, such as reducing the risk of heart disease, stroke, and diabetes. This is leading to increased demand for chocolate, especially among health-conscious consumers.

Growing popularity of premium and dark chocolate. Premium and dark chocolate are becoming increasingly popular, as consumers are looking for more sophisticated and flavorful chocolate options. This is driving growth in the chocolate market, as these types of chocolate typically command a higher price than traditional milk chocolate.

Chocolate has been shown to have a number of health benefits, including:

Reduced risk of heart disease. The flavanols in chocolate can help to improve blood flow and reduce inflammation, which can help to protect against heart disease.

Lowered blood pressure. The flavanols in chocolate can also help to lower blood pressure, which is another risk factor for heart disease.

Reduced risk of stroke. Chocolate has been shown to reduce the risk of stroke, especially in women.

Improved blood sugar control. The flavanols in chocolate can help to improve insulin sensitivity, which can help to control blood sugar levels.

Reduced risk of type 2 diabetes. Chocolate has been shown to reduce the risk of type 2 diabetes, especially in women.

Improved cognitive function. The flavanols in chocolate can help to improve cognitive function, such as memory and attention.

Reduced risk of Alzheimer's disease and dementia. The flavanols in chocolate may help to protect against Alzheimer's disease and dementia.

Improved mood. Chocolate can help to improve mood, possibly due to its effects on the brain's serotonin levels.

Antioxidant protection. Chocolate is a good source of antioxidants, which can help to protect cells from damage.

It is important to note that these health benefits are only seen with dark chocolate, which contains a higher concentration of flavanols than milk chocolate. Additionally, the benefits are seen when chocolate is eaten in moderation.

So what chocolate stocks are available to investors?

Hershey Foods Corporation (HSY), commonly known as Hershey’s, is a well-known American chocolate company. Hershey’s was founded by Milton S. Hershey in 1894 in the town of Hershey, Pennsylvania, USA. Milton Hershey had previous experience in the caramel business but turned his attention to chocolate manufacturing.

In 1900, Hershey’s introduced its iconic product, the Hershey’s Milk Chocolate Bar, which quickly became popular among consumers. The company’s success was largely attributed to its use of fresh milk and other high-quality ingredients.
Hershey’s experienced significant expansion throughout the early 20th century.

Milton Hershey established a model town called Hershey, Pennsylvania, to house the company’s employees and their families. The town included amenities such as housing, schools, recreational facilities, and a theme park called Hersheypark.
During World War II, Hershey’s was commissioned by the U.S. government to produce ration bars for the military. These bars provided soldiers with a high-calorie and nutritious food source during combat.

In addition to the classic chocolate bars, Hershey’s expanded its product line to include various confectionery items. This included the introduction of Hershey’s Kisses in 1907, Reese’s Peanut Butter Cups in 1928, and Kit Kat bars in the United States in 1970 through a licensing agreement with Nestlé.

Hershey’s expanded its reach globally, establishing manufacturing facilities and acquiring confectionery companies in different countries. Today, Hershey’s products are available in various regions around the world.

Over the years, Hershey Foods Corporation has grown to become one of the largest chocolate and confectionery manufacturers in the United States and has built a strong brand recognized globally.

Hershey has a trailing price to earnings ratio of 32 and a forward P/E ratio of 25. Earnings per share growth for this year jumped by 44.6%. The stock pays a dividend of $4.14 per year, giving a yield of 1.59%.

Mondelez International (MDLZ) has a rich history in the chocolate industry. The company traces its roots back to 1903 when it was originally established as the National Biscuit Company [NBC] in the United States. NBC quickly gained recognition for its popular snack products, including cookies and crackers. Over the years, NBC expanded its product portfolio and became a leading player in the global food and beverage industry.

In 1923, NBC introduced its first chocolate product, the iconic Oreo cookie, which went on to become one of the company’s most beloved and successful brands. This marked NBC’s entry into the chocolate segment and set the stage for its future endeavors in the chocolate industry.

In 1969, NBC merged with another prominent food company, Kraft Foods, forming the conglomerate known as Kraft General Foods (KGF). This merger brought together two industry giants and further solidified their presence in the chocolate and snack market.

In 2000, KGF underwent a significant restructuring and rebranding. The company spun off its international snack and confectionery businesses, including its chocolate brands, into a separate entity called Kraft Foods Inc. This move aimed to enhance focus and drive growth in the respective product categories.

In 2012, Kraft Foods Inc. made another transformational change. It split into two independent companies: Kraft Foods Group, which focused on the North American grocery business, and Mondelez International, which took charge of the global snacks and confectionery portfolio, including its chocolate brands.

As a result, Mondelez International became a standalone company dedicated to delighting consumers with a wide range of chocolate products. The company’s chocolate portfolio includes well-known brands such as Cadbury, Milka, Toblerone, and Côte d’Or, among others.

This $100 billion market cap company trades at 26 times trailing earnings and 21 times forward earnings. Quarterly earnings growth year-over-year jumped 147.8% on a rise of 18.1% increase in quarterly sales over the same period. The stock pays a dividend yield of 2.09%.

Tootsie Roll Industries has a storied history in the chocolate industry, dating back to its inception in 1896. The company was founded by Leo Hirshfield, who initially started his confectionery business in New York City. While Tootsie Roll Industries is best known for its namesake candy, the Tootsie Roll, its involvement in the chocolate sector is significant.

In the early years, Tootsie Roll Industries primarily focused on producing hard candies. However, in 1907, the company introduced a breakthrough product that would shape its future—the Tootsie Roll. This chocolate-flavored taffy-like candy became an instant success, winning the hearts of consumers across the United States.

Building on the triumph of the Tootsie Roll, the company expanded its chocolate offerings with the introduction of Tootsie Pops in 1931. These lollipops, featuring a chewy Tootsie Roll center, quickly became a beloved treat and a staple of Tootsie Roll Industries’ product lineup.

Over the decades, Tootsie Roll Industries continued to innovate and expand its chocolate portfolio. In 1971, they introduced another iconic product, the Junior Mints. These creamy, chocolate-covered mints gained popularity and have remained a favorite movie theater snack ever since.

Tootsie Roll Industries further expanded its chocolate offerings through acquisitions. In 1993, the company acquired the Charms Company, known for its popular Charms Blow Pops, which combined fruit-flavored hard candy with a gum center. This acquisition strengthened Tootsie Roll Industries’ presence in the chocolate and confectionery market.

Today, Tootsie Roll Industries is a leading player in the chocolate and confectionery industry. In addition to the classic Tootsie Roll and Tootsie Pops, the company offers a diverse range of chocolate-based candies, including Dots, Andes, and Caramel Apple Pops, among others.

This $2.68 billion market cap stock trades at 34 times trailing earnings. Quarterly sales were up 15.3% over the same period last year, and earnings increase 12.8% over the same period. The company offers a yield of 0.97%.

The Rocky Mountain Chocolate Factory is a confectionery company founded in 1981 by Frank and Rosalie Crail in Durango, Colorado. Starting with their first store in an old house, they offered a variety of chocolates and confections. As their high-quality chocolates gained popularity, the company expanded rapidly and began opening franchise locations across the United States.

Rocky Mountain Chocolate Factory became known for its diverse range of chocolate products, including caramel apples, fudge, truffles, nut clusters, and chocolate-covered treats. They also introduced innovative creations like gourmet popcorn, chocolate-dipped strawberries, and custom gift baskets.

To further expand, Rocky Mountain Chocolate Factory adopted a franchise model, allowing individuals to open their own stores under the brand’s umbrella. This approach contributed to the company’s rapid growth and the establishment of numerous retail locations nationwide.

In addition to its success in the United States, Rocky Mountain Chocolate Factory ventured into international markets. It opened stores in Canada, the United Arab Emirates, South Korea, Japan, and other countries, expanding its reach and introducing its products to a global audience.

Throughout its history, Rocky Mountain Chocolate Factory has maintained a commitment to using premium ingredients and traditional chocolate-making techniques. The company focuses on handcrafting its chocolates in small batches to ensure freshness and superior taste.

Rocky Mountain Chocolate Factory’s dedication to quality and its unique offerings have earned it a loyal customer base and recognition within the confectionery industry. Its stores are often sought out by chocolate enthusiasts and tourists looking for delicious treats.

Today, the Rocky Mountain Chocolate Factory continues to thrive, offering a wide selection of chocolates and confections in its stores and franchises. Its commitment to quality, innovative products, and expansion efforts have made it a well-known name in the chocolate industry.

The company is currently generating negative earnings, but has a reasonable price to sales ratio of 1.10. Rocky Mountain is an extremely low cap company at $33 million, and should therefore be considered extremely speculative.

Overall, the future of the chocolate industry is marked by innovation, sustainability, and meeting evolving consumer demands. As companies continue to adapt to changing trends and invest in responsible practices, the chocolate industry is poised for continued growth and diversification.

Disclosure: Author didn’t own any of the above at the time the article was written.

Chocolate: Healthy for You, Healthy for Your Portfolio

by Fred Fuld III

Chocolate, especially dark chocolate that contains a high percentage of cocoa solids, has several potential health benefits. Here are some of the health benefits of  chocolate:

Rich in antioxidants: Chocolate, particularly dark chocolate, is a good source of antioxidants that help protect the body against free radicals that can cause cell damage.

May lower blood pressure: Studies have found that consuming dark chocolate on a regular basis may help lower blood pressure, which is a risk factor for heart disease.

May reduce the risk of heart disease: The flavonoids in dark chocolate may improve heart health by reducing inflammation and improving blood flow, which may lower the risk of heart disease.

May improve brain function: The flavonoids in dark chocolate may also improve brain function and protect against cognitive decline, particularly in elderly individuals.

May reduce the risk of stroke: Studies suggest that consuming chocolate, particularly dark chocolate, may help lower the risk of stroke.

May improve mood: Chocolate contains several compounds that may improve mood, including phenylethylamine, which stimulates the release of endorphins and dopamine, two chemicals that produce feelings of happiness and pleasure.

So if chocolate is so healthy, then maybe there are some investment opportunities in this tasty industry.

The Hershey Co. (HSY) is one of the largest chocolate manufacturers in the world. The company, which is headquartered in Hershey, Pennsylvania, controls a significant share of the domestic chocolate market.

The company produces a wide range of chocolate and confectionery products, including Hershey’s chocolate bars, Hershey’s Kisses, Reese’s Peanut Butter Cups, Kit Kat, Twizzlers, and Jolly Rancher candies. Hershey also manufactures baking chocolate, cocoa powder, and chocolate syrup.

In addition to its operations in the United States, the Hershey Company has a presence in over 70 countries worldwide, including Canada, Mexico, Brazil, China, and India. The company employs over 18,000 people.

The company has a market cap of $54.8 billion and pays a dividend yield of 1.51%. The stock has a price-to-sales ratio of 5.28, and trades at 33 times trailing earnings and 29 times forward earnings. Annual Earnings per share growth for the last five years was 17.8%, and a 44.6% growth this year.

Rocky Mountain Chocolate Factory Inc. (RMCF) is a confectionery and franchising company based in Durango, Colorado, United States. It was founded in 1981 by Frank Crail and has since grown into a well-known brand in the chocolate industry.

The company specializes in producing and selling a wide variety of chocolate and confectionery products. Some of their popular offerings include caramel apples, fudge, truffles, chocolate-covered strawberries, toffee, and various types of chocolate bars. They also offer seasonal and holiday-themed chocolates.

Rocky Mountain Chocolate Factory operates a combination of company-owned stores and franchised locations. Their stores are known for their attractive displays of chocolate and the opportunity to watch the candy-making process through a glass window, which adds to the customer experience.

In addition to its domestic presence, Rocky Mountain Chocolate Factory has expanded internationally and operates stores in several countries worldwide. They also offer online ordering, allowing customers to purchase their chocolates from anywhere.

Rocky Mountain Chocolate Factory Inc. has an extremely small market cap of $34 million. Its stock has a reasonable price-to-sales ratio of 0.99 and a price-to-earnings ratio of 13. Quarterly revenue growth year over year was 11.8% and quarterly earnings growth was 85.9%. The company is debt free.

Tootsie Roll Industries (TR), although not a “chocolate” company as such, is a confectionery manufacturer based in Chicago, Illinois, United States. The company was founded in 1896 by Leo Hirshfield and is named after his daughter’s nickname, “Tootsie.”

Tootsie Roll Industries is primarily known for its iconic Tootsie Roll, a chocolate-flavored taffy-like candy that has become a classic American treat. However, the company produces and markets a diverse range of confectionery products, including Tootsie Pops, Charms Blow Pops, Dots, Junior Mints, Sugar Daddy, Charleston Chew, and Andes mints, among others.

The company operates manufacturing facilities in the United States and Mexico. Its products are distributed both domestically and internationally, with a presence in over 75 countries.

Tootsie Roll Industries has maintained a focus on quality and craftsmanship throughout its long history. The Tootsie Roll, in particular, has remained relatively unchanged in its recipe and packaging, and it is often marketed as a nostalgic candy beloved by generations.

The stock has a market cap of $2.64 billion and pays a yield of 0.97%. It has a P/E ratio of 34, and earnings per share growth this year were up 17.3%.

A few other chocolate stocks that may be worth looking into are Mondelez International (MDLZ), Nestle (NSRGY), and Lindt & Sprungli AG (LDSVF).

Let me leave you with these thoughts:

“Investing is like a box of chocolates; you never know what sweet returns you’ll get.”

“Successful investing is like creating a perfectly balanced chocolate recipe – it’s all about finding the right mix.”

“Remember, investing is a marathon, not a sprint, just like savoring a piece of delicious chocolate.”

“Investing is like a chocolate factory; it takes careful planning and good management to churn out sweet profits.”

Disclosure: Author didn’t own any of the above at the time the article was written.

Happy Halloween Stocks

by Fred Fuld III

It’s Halloween today, a boon for the candy manufacturers. The companies that produce horror movie also benefit. It’s hard to believe it’s that time of year. Pretty soon it will be Thanksgiving.

The biggest beneficiaries of the Halloween season are the candy makers.

Hershey Foods (HSY), one of the biggest chocolate and candy companies in the world, with two of its most popular products being Hershey Kisses and Hershey Bars, along with Reese’s. The stock has a trailing price to earnings ratio of 33.5, a forward P/E ratio of 27, and  pays a dividend yield of 1.7%. Next year’s annual earnings per share are anticipated to be up 8.36%.

Tootsie Roll Industries (TR) has an assortment of candy kids, such as Tootsie Rolls, Tootsie Roll Pops, Caramel Apple Pops, Charms, Blow-Pops, Blue Razz, Zip-A-Dee Pops, Cella’s, Mason Dots, Mason Crows, Junior Mint, Sugar Daddys, and Sugar Babies. The stock has a P/E of 40.5 and pays a yield of 0.89%. Earnings per share this year were up 12.5%.

Mondelez International (MDLZ) is a multinational producer of candy, along with food and beverages. Its brands include Sour Patch, Swedish Fish, Cadbury, and Toblerone. The trailing P/E is 22 and the forward P/E is 20. The yield is a tasty 2.5%.

Watching scary movies is another popular event on Halloween. Netflix (NFLX), the huge provider of videos in the US, has an extensive selection of scary movies in its collection of titles. The stock trades as 27.9 times trailing earnings and 28.1 times forward earnings. It does not pay a dividend.

A major producer of scary movies is Lions Gate Entertainment (LGF-A), which has made such films as American Psycho, Ginger Snaps, Route 666, The Devil’s Rejects, House of the Dead 2, Saw VI, See No Evil, Hostel: Part II, My Bloody Valentine 3D and many others. Lionsgate currently has generated negative earnings but has a forward price to earnings ratio of 227.

Then of course, Amazon (AMZN) has plenty of Halloween costumes. Amazon has a trailing PE of 93 and a forward PE of 56.

Hopefully, your Halloween portfolio will bring you treats.

Disclosure: Author didn’t own any of the above at the time the article was written.

How to Trade Agricultural Commodities without Trading Futures

by Fred Fuld III

Have you ever thought about trading or investing in an agricultural commodity, possibly as an inflation hedge, such as  wheat, corn, soybeans, or even coffee?

But maybe you didn’t want to get into futures because of the risk or lack of understanding or both.

Well, there is another way to trade these food items, and that is through the agricultural commodities exchange traded funds.

Probably the safest way is through an ETF that has a diversified portfolio of agricultural products, such as the Invesco DB Agriculture Fund (DBA), which has an investment objective of investing in a portfolio of exchange-traded agricultural futures.

If you think the price of corn is going to take off, you could trade the Teucrium Corn Fund (CORN).

Or maybe you think the demand for sugar is going to increase, causing the sugar price to spike. You have a couple of alternatives, the iPath Series B Bloomberg Sugar Subindex Total Return ETN (SGG) and the Teucrium Sugar Fund (CANE).

If you like chocolate, there is the iPath Bloomberg Cocoa Subindex Total Return ETN (NIB).

The following is a list of the agricultural commodities ETFs.

Commodity Symbol ETF Name  Total Assets*
Agriculture DBA Invesco DB Agriculture Fund  1,018,170
Agriculture RJA Elements Rogers International Commodity Index-Agriculture Total Return ETN  153,758
Corn CORN Teucrium Corn Fund  120,848
Coffee JO iPath Series B Bloomberg Coffee Subindex Total Return ETN  94,895
Wheat WEAT Teucrium Wheat Fund  75,645
Soybean SOYB Teucrium Soybean Fund  44,971
Sugar SGG iPath Series B Bloomberg Sugar Subindex Total Return ETN  26,419
Sugar CANE Teucrium Sugar Fund  22,844
Cocoa NIB iPath Bloomberg Cocoa Subindex Total Return ETN  22,713
Grains JJG iPath Series B Bloomberg Grains Subindex Total Return ETN  21,563
Cotton BAL iPath Series B Bloomberg Cotton Subindex Total Return ETN  20,602
Livestock COW iPath Series B Bloomberg Livestock Subindex Total Return ETN  19,665
Agriculture TAGS Teucrium Agricultural Fund  14,180
Agriculture JJA iPath Series B Bloomberg Agriculture Subindex Total Return ETN  11,211
* In thousands

You will notice that some of these are ETNs (Exchange Traded Notes) as opposed to ETFs. ETNs are senior, unsecured debt securities similar to a bond

Keep in mind that these funds are very volatile, very speculative, and can have low volume and very wide spreads.

 

Disclosure: Author is long JO and WEAT.

Top Mother’s Day Stocks

by Nkem Iregbulem 

Mother’s Day is coming up on May 12th this year in the United States. On this special day, family members honor mothers and motherhood. Mother’s Day is celebrated by over 40 countries around the world in different ways and on various days – particularly in the months of March and May. To display gratitude, family members often shower mothers in gifts such as chocolates, flowers, jewelry, and cards.

The holiday was first created in the United States by Anna Jarvis in 1908 but did not become an official national holiday until 1914. Celebrations of motherhood, however, are centuries old and can be traced back to the ancient Greeks and Romans. The Greeks honored Rhea, their mother of gods, with offerings of honey-cakes, fine drinks, and flowers at dawn. The Romans honored Magna Mater by bringing gifts to the temple they built for her in Rome. During the 1600s, England  honored mothers of England with a Christian festival known as “Mothering Sunday.” Since then, the holiday has grown more and more popular around the world.

There are a few stocks that may benefit from the commercialization of Mother’s Day. These include Hershey (HSY), Rocky Mountain Chocolate Factory Inc. (RMCF), Nestle (NSRGY), 1-800-Flowers.com Inc. (FLWS), and CSS Industries Inc. (CSS). The RMCF and FLWS stocks are traded on the NASDAQ exchange. The HSY and CSS stocks are traded on the New York Stock Exchange, and the NSRGY stock is traded over-the-counter.

One company that could benefit from the annual celebration is The Hershey Co., one of the largest chocolate manufacturers in the world. The Hershey Company, headquartered in Hershey, Pennsylvania, controls around 45% of the domestic chocolate market. Its products are offered in about 80 countries including the United States, China, Brazil, India, and Mexico. The leading chocolate company sells Mother’s Day favorites such as chocolate and other sweets to its customers.

The company has a market cap of $26.1 billion and pays a dividend yield of 2.31%. With a price-to-sales ratio of 3.36, its stock is slightly overpriced. The stock trades at 22.59 times trailing earnings and at 22.22 times forward earnings. The company’s stock also has a high price-to-book ratio of 18.47. Its revenue has been increasing each fiscal year since 2015, giving Hershey a 3-year revenue growth rate of 1.79%.

A mother might appreciate a sweet gift from Rocky Mountain Chocolate Factory Inc, a company that manufactures chocolate candies and confectionery products. Founded in 1981 and based in Colorado, it operates in the United States, Japan, Canada, Philippines, South Korea, and the United Arab Emirates. The company’s business activity can be divided into a couple segments: Franchising, Manufacturing, Retail Stores, U-Swirl Operations, and Other. Its products include clusters, truffles, caramels, mints, and molded chocolates – all great Mother’s Day gifts.

Rocky Mountain Chocolate Factory Inc. has a low market cap of $57.98 million and pays a dividend yield of 4.92%. With a negative 3-year growth rate of -2.84%, the company has seen decreasing revenue values each fiscal year since 2015. Its stock has a normal price-to-sales ratio of 1.64 and a price-to-book ratio of 2.82. The stock also trades at 23.85 times trailing earnings.

You might find the perfect Mother’s Day gift at Nestle, a well-known chocolate powerhouse founded in 1866.By sales, the Swiss company is the world’s largest food and beverage company. Brands such as Nestle, Nescafe, Perrier, Pure Life, and Purina are all part of the company’s product portfolio. Under these brands and various other brands, the company offers chocolate and other food products.

The company has a market cap of $284.96 billion and pays dividend yield of 2.57%. With a price-to-sales ratio of 3.22, the company’s stock is slightly overpriced. It trades at 24.32 times trailing earnings and at 22.42 times forward earnings. The stock has a price-to-book ratio of 5.07. Nestle’s revenue has been increasing each fiscal year since 2015, giving the company a 3-year growth rate of 0.99%.

Another company that might benefit from Mother’s Day sales is 1-800-Flowers.com Inc. Based in New York, the company was founded in 1982. 1-800-Flowers.com offers flowers, candy, stuffed animals, gift baskets, and candles – gifts a Mother would love to receive on her special day. Other products include fruits, popcorn, steaks, and cookies. These products are offered under brands such as 1-800-Baskets.com, The Popcorn Factory, and Fannie May.

1-800-Flowers.com Inc. has a market cap of $1.23 billion and does not pay a dividend yield. Its stock trades at 36.23 times trailing earnings and at 37.59 times forward earnings. It has a normal price-to-sales ratio of 1.06 and a price-to-book ratio of 3.46. With a 3-year revenue growth rate of 0.90%, the company has seen its revenue increase each fiscal year from 2010 to 2017 before a slight drop in 2018.

Founded in 1923 and headquartered in Pennsylvania, CSS Industries Inc. (CSS) is another company that offers Mother’s Day related products. The company makes gift wrap and greeting cards for special occasions. CSS Industries also offers products such as classroom exchange Valentines, journals, floral accessories, and scrapbooks. It distributes and sells these products to mass market retailers in the United States and Canada.

CSS Industries has a low market cap of $55.31 million and pays a dividend yield of 12.78%. The stock trades at 20.20 times forward earnings. The company’s stock has an excellent price-to-sales ratio of 0.14 and a low price-to-book ratio of 0.26. CSS Industries’ revenue has been increasing since 2015, giving the company 3-year revenue growth rate of 4.95%.

Happy Mother’s Day!

Disclosure: Author did not own any of the above at the time the article was written. 

How to Invest in Valentine’s Day

by Fred Fuld III

There are just a couple days left to shop for Valentine’s Day. Why not give your loved one a Valentines stock, instead of one of the typical ones. The Valentines stocks include those that sell chocolate, jewelry, greeting cards, and gift wrap.

Here is a stock that is not very well know but very gift oriented. CSS Industries Inc. (CSS) markets gift wrap, gift bags, boxed greeting cards, gift tags, tissue paper, decorations, and decorative ribbons and bows. The stock trades at 7.8 times forward earnings, and pays a generous forward dividend yield of about 10%.

red rose

Flowers are always popular. 1-800-Flowers.com Inc. (FLWS) is the largest publicly traded company of flowers, plus it markets cakes, cookies, candy, wines, gift baskets, and other goodies for your valentine. The stock trades at 45.9 times forward earnings, and a price to sales ratio of 0.93.

chocolate candy

 Unless they have an allergy, all valentines like chocolate. The Rocky Mountain Chocolate Factory Inc. (RMCF), based in Durango, Colorado produces and sells various types of chocolate candy including caramels, creams, mints, and truffles. The company was founded in 1981, has over 300 franchise locations. The price to earnings ratio is 21.2. Rocky Mountain pays a very tasty dividend yield of 5.5%.

What valentine doesn’t like jewelry? Something like a Platinum Pear Cut Emerald And Round Diamond Pendant would make a nice gift. The price is only $120,443 and is available through Amazon (AMZN).

Tiffany (TIF), founded in 1837, is one of the largest jewelry companies in the world, with over 60 U.S. stores and numerous international locations. The stock trades at 16.8 times forward earnings. This stock also pays a dividend, with a decent yield of 2.5%.

 For more stocks that could increase sales from the Valentine experience, such as candy and chocolate stocks, check out the free lists here at WSTNN.com.

Disclosure: Author did not own any of the above at the time the article was written.

Chocolate May Improve Your Health and Boost Your Portfolio

by Nkem Iregbulem

Chocolate is one of the most popular foods in the world. Some of the most common types of chocolate we see are milk chocolate, dark chocolate, and white chocolate. Think you know everything there is to know about chocolate? Turns out that numerous studies have found that chocolate consumption may improve your health in a variety of ways. Chocolate may be more than just a sweet treat enjoyed around the world.

Last June, The Harvard Gazette reported on a recent study conducted by researchers in Denmark and at the Harvard T.H. Chan School of Public Health. The study was published in the journal Heart, and its participants were 55,502 men and women from the Danish Diet, Cancer, and Health Study. Researchers found an association between moderate chocolate consumption and a lower risk of atrial fibrillation, a type of irregular heartbeat. They also found that those who ate 2 to 6 one-ounce servings of chocolate per week had the lowest rate of atrial fibrillation. The chocolate consumed by participants contained relatively low levels of potentially protective ingredients, suggesting that even small doses of cocoa can go a long way in terms of possible health benefits.

A few months ago, another study found that the consumption of dark chocolate may reduce stress levels and inflammation and even boost memory, immunity, and mood. The researchers at Loma Linda University Adventist Health Sciences Centre who led this study suspect that cacao, an ingredient commonly found in dark chocolate, may be largely responsible for the candy’s potential to support cognitive, endocrine, and cardiovascular health. They suggest cacao’s protective power likely comes from the fact that that it is a great source of flavonoids, which are very potent antioxidants and anti-inflammatory agents.

Chocolate may boost not only your health but also your portfolio. You can choose from a variety of chocolate-related companies including Rocky Mountain Chocolate Factory Inc. (RMCF), The Hershey Co. (HSY), Mondelez International (MDLZ), Tootsie Roll Industries Inc. (TR), Nestle (NSRGY), and Lindt & Sprungli AG (LDSVF). The RMCF and MDLZ stocks are traded on the NASDAQ exchange, and the HSY and TR stocks are traded on the New York Stock Exchange. The NSRGY and LDSVF stocks are both traded over-the-counter.

Your first option is Rocky Mountain Chocolate Factory Inc, a company that manufactures chocolate candies and confectionery products. It operates in the United States, Japan, Canada, Philippines, South Korea, and the United Arab Emirates. The company’s business activity can be divided into a couple segments: Franchising, Manufacturing, Retail Stores, U-Swirl Operations, and Other segments. Its products include clusters, truffles, caramels, mints, and molded chocolates. Rocky Mountain Chocolate Factory Inc. has a small market cap of $64.7 million and pays a dividend yield of 4.26%. With a negative 3-year growth rate of -2.84%, the company has seen decreasing revenue values each fiscal year since 2015. Its stock has a price-to-sales ratio of 1.71 and a price-to-book ratio of 3.29. The stock also trades at 21.82 times trailing earnings.

A second option is The Hershey Co., one of the largest chocolate manufacturers in the world. The Hershey Company, headquartered in Hershey, Pennsylvania, controls around 45% of the domestic chocolate market. Its products are offered in about 80 countries including the United States, China, Brazil, India, and Mexico. The leading chocolate company sells chocolate, sweets, mints, and other snacks to its customers. The company has a market cap of $18.94 billion and pays a dividend yield of 2.92%, which has been decreasing since 2015. With a price-to-sales ratio of 2.56, its stock is slightly overpriced. The stock trades at 18.27 times trailing earnings and 16.89 times forward earnings. The company’s stock also has a high price-to-book ratio of 19.66. The Hershey’s revenues have been increasing each fiscal year since 2015, giving it a 3-year revenue growth rate of 0.42%

You may also want to consider Mondelez International, a confectionary, food, and beverage company based in Illinois. It manufactures chocolate, biscuits, gum, candy, beverages, cheese, and groceries. However, chocolate alone is responsible for about 30% of the company’s sales revenue. Its portfolio includes billion-dollar companies such as Chips Ahoy! and Oreo.The company has a nice market cap of $57.91 billion and pays a dividend yield of 2.17%. The company’s stock is slightly overpriced with a price-to-sales ratio of 2.30. It trades at 17.25 times trailing earnings and 16.03 times forward earnings. Its price-to-book ratio is 2.22. Mondelez International’s revenue has been decreasing each fiscal year since 2013 as the company faces a negative 3-year growth rate of -8.89%.

Another option is Tootsie Roll Industries Inc., a company that manufactures and sells candy to wholesale distributors and to retail stores. It candy products — many of which are chocolate-based — include Tootsie Rolls, Tootsie Pops, Junior Mints, Charms, Blow-Pops, and Dots. The company mainly operates in the United States, Canada, and Mexico, but over 90% of its sales comes from customers in the United States. The company has a market cap of $1.45 billion and pays a dividend yield of 1.21%. Its stock has a price-to-sales ratio of 3.72, making it somewhat overpriced. The stock trades at 24.25 times trailing earnings and has a price-to-book ratio of 1.60. Tootsie Roll’s revenue has been decreasing each fiscal year since 2014 as the company faces a negative 5-year growth rate of -1.14%.

Nestle is another well-known, chocolate-related powerhouse to consider. By sales, the Swiss company is the world’s largest food and beverage company. Brands such as Nestle, Nescafe, Perrier, Pure Life, and Purina are all part of the company’s product portfolio. Under these brands and various other brands, the company offers baby food, cereal, bottled water, coffee products, chocolate, frozen food, and confectionery products. The company has a large market cap of $231.56 billion and pays dividend yield of 3.18%, but this value has been decreasing each year since 2015. With a price-to-sales ratio of 2.59, the company’s stock is slightly overpriced. It trades at 31.28 times trailing earnings and 19.49 times forward earnings. The stock has a price-to-book ratio of 3.74. Nestle’s revenue has been increasing each fiscal year since 2015, giving it a 5-year growth rate of 0.04%.

You might also look at Lindt & Sprungli AG, a Swiss chocolatier and confectionery company that manufactures and sells premium chocolate products. It is best known for its chocolate truffles and chocolate bars. The company focuses its operation in developed markets in Europe and North America. Lindt & Sprungli AGoffers its products under brand names such as Lindt, Ghirardelli, Russell Stover, Whitman’s, Pangbourne, Caffarel, and Lindor. The company has a nice market cap of $7.55 billion and pays a dividend yield of 0.93%, which has been increasing each year since 2014. Its stock has a price-to-book ratio of 1.78 and an excellent price-to-sales ratio of 0.37. It trades at 3.30 times trailing earnings and 30.30 times forward earnings. Revenue has been increasing each fiscal year since 2011 as the company enjoys a 3-year revenue growth rate of 6.49%.

Turns out that chocolate may be beneficial in more ways than one. Beyond merely satisfying your sweet tooth, chocolate can better your health and sweeten your portfolio.

Disclosure: Author didn’t own any of these stocks at the time the article was written.