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Building a trading portfolio is a lot like building a relationship really. You want to find the right balance between stability, growth, risk and diversification. Plenty of fish in the sea - but putting your eggs in the wrong basket can certainly leave you hurting. That's why it's important to do your research and choose wisely. In this article we will unpack 5 of the best and brightest love-linked securities you might want to pull this Valentines Day. Birds and Bees. Bulls and Bears. Love your trading with markets.com. Whether you're a seasoned investor or just starting out, these securities offer something for everyone. So, let's dive in and discover the perfect match for your portfolio. 

 

Hotel Chocolat 

Hotel Chocolat is a British chocolatier and cocoa grower, founded in 1993 by Angus Thirlwell and Peter Harris. The company has become a well-known and beloved brand, known for its high-quality, ethically sourced chocolate products – considered in many cultures to be an aphrodisiac! Hotel Chocolat has experienced great success over the years, due in part to its unique approach to chocolate-making and its commitment to using only the finest, sustainably sourced ingredients. 

Hotel Chocolat has recently shown impressive financial performance, with a 37% increase in sales compared to the previous fiscal year and a 71% growth compared to the pre-COVID year of 2019. The business achieved significant growth in FY22, reaching sales of £226 million. The compound annual growth rate over the past two years stands at 29%, which is significantly higher than the CAGR of 12% in the preceding four years. This surge in sales growth is a testament to the strength of the brand and despite the new pressures, challenges, and opportunities that come with faster growth, the company has stated that it is maintaining its strategy to ensure continued success in the future. 

 

Card Factory 

Card Factory is a British retailer that specializes in selling greeting cards and gifts. Founded in 1997, the company has grown to become one of the largest card retailers in the United Kingdom. Card Factory's success can be attributed to several factors, including its wide range of products, affordable prices, and its commitment to providing high-quality customer service. The company has a strong brand presence, with over 1000 stores throughout the UK, and it has expanded its offerings to include a variety of gifts and party supplies including, you guessed it, Valentines Day cards. 

In 2021, despite closures of non-essential retail stores, Card Factory remained the largest in-store card retailer by volume share in the UK. The company's market share by volume of UK greeting cards rebounded to 24% in 2021, following a decline to 20% in 2020, and is continuing to increase towards its pre-pandemic level of 33% in 2019. This growth has outperformed the market, demonstrating the strength and resilience of the Card Factory brand. The company continues to lead the sector by selling more cards than any other retailer. If you still believe in the longevity and meaning of a handwritten card, Card Factory may very well be a good long-term trading opportunity.  

 

Reckitt Benckiser 

Reckitt Benckiser is a world-renowned British consumer goods company that has been successful in the manufacturing and distribution of products in more than 200 countries worldwide. One of the most popular products they manufacture is condoms. In recent years, the brand has gained immense success, thanks to its products such as Durex condoms. These high-quality condoms have been essential in helping to ensure people are having safe sex. Making for a safe addition to your Valentines Day, the question is, is it also a secure addition to your portfolio in 2023? 

Reckitt Benckiser delivered another quarter of growth in Q3 2022, with a group like-for-like (LFL) revenue growth of 7.4%. The group's net revenue grew by 14.0% with LFL growth of 7.4% and FX tailwinds of 8.5%. 70% of the portfolio showed high-single digit growth, excluding the impact of Covid. The hygiene division showed a decline of 1.2% but improved as the Lysol base normalized. Health division showed strong growth of 10.7% and nutrition division showed 24.7% growth, driven by growth in the US and Developing Markets. Reckitt Benckiser's CEO, Nicandro Durante, comments on the success and the firm's plans to continue their momentum, targeting sustainable mid-single digit net revenue growth and mid-20s adjusted operating margins by the mid-2020s. While these plans are subject to risks and uncertainties., with continued performance Reckitt could make for a good addition to a 2023 portfolio. 

 

LVMH (Moët Hennessy Louis Vuitton) 

LVMH (Moët Hennessy Louis Vuitton) is a French multinational corporation and the world's largest luxury goods company. It was created in 1987 through the merger of fashion house Louis Vuitton with Moët Hennessy, a company specializing in luxury wines and spirits. The company operates in six different sectors: fashion and leather goods, perfumes and cosmetics, watches and jewellery, selective retailing, wine and spirits, and hotels. Over the years, LVMH has acquired many prestigious brands, such as Bulgari, Givenchy, and Sephora, and provide a litany of gifts for the fashion-conscious or luxury-oriented Valentine.  

Financially LVMH is the world's leading luxury goods group, had a strong year in 2022 with revenue of €79.2 billion and profit from recurring operations of €21.1 billion, both up 23%. All business groups achieved significant organic revenue growth, with Fashion & Leather Goods reaching record levels with a 20% increase. The group's operating margin remained the same as in 2021 and the share of net profit was €14.1 billion, up 17% compared to the previous year. The operating free cash flow also surpassed €10 billion. The growth was driven by strong demand from local customers in Europe, the United States, and Japan and the recovery of international travel. Asia remained stable over the year due to developments in the health situation in China. According to Chairman and CEO Bernard Arnault, the performance of the company in 2022 highlights the exceptional appeal of its Maisons and their ability to create demand despite a generally challenging year for the sector. If the group continues to post strong financials it may make it a good addition to a love-based portfolio. 

 

Pfizer 

Perhaps the least ‘pure play’ romantic stock on this list, producing a long list of pharmaceutical products. However, for years, Viagra has been one of the most talked-about drugs, not only in the medical industry but in popular culture too. For those looking to reclaim their youthful vigour to those hoping to spice up their relationship, the name Viagra has become a synonym for power and potency. For Valentine's Day, this is one must-have that some couples can't live without. Pfizer is a multinational pharmaceutical company that is well known for its innovative research and development in the healthcare industry. The company has had numerous successful drugs and treatments, including the COVID-19 vaccine developed in partnership with BioNTech. With its broad portfolio of medicines and vaccines, Pfizer continues to be a leader in the healthcare industry, improving the health and well-being of people around the world. 

Financially, Pfizer achieved record-breaking results in the year 2022, with full-year revenues reaching $100.3 billion, an all-time high for the company and a 30% increase in operational growth. Excluding contributions from Paxlovid and Comirnaty, the revenues grew by 2% operationally. The strong performance continued in the fourth quarter of 2022, with revenues of $24.3 billion and a 13% operational growth, with a 5% increase in operational growth excluding contributions from Paxlovid and Comirnaty. Pfizer also saw an impressive increase in earnings per share, with reported diluted EPS of $5.47, up 42% from the previous year, and adjusted diluted EPS of $6.58, up 62% from the previous year. With bolstered performance and brand recognition, traders may find Pfizer to be a welcome and reliable addition to a Valentines portfolio.  

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