3 Stocks to Love on Valentine's Day

Instead of buying candy and flowers today, traders may want to take a look at Hershey Co (HSY), FTD Companies Inc (FTD), and Netflix, Inc. (NFLX) stocks

Feb 14, 2017 at 3:07 PM
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Today is Valentine's Day -- a good reminder for anyone who hasn't been checking the calendar. As such, it's likely to be one of the busiest days of the year for buying chocolate and flowers, going out to eat, or even staying in with a loved one. But while everyone is busy spending money on their sweetheart, perhaps this is a prime opportunity to check in with a few stocks that could help traders make a few bucks.  Specifically, we're talking about candy maker Hershey Co (NYSE:HSY), flower delivery service FTD Companies Inc (NASDAQ:FTD), and streaming media provider Netflix, Inc. (NASDAQ:NFLX) -- three names that could stand to benefit from this less-than-thrifty holiday. Below we'll take a look at why shares of HSY, FTD, and NFLX could be in line for gains.

Hershey Sees No Love from Analysts

Since buyout buzz burnt out last summer, HSY stock has been making a comeback, nearly closing its late-August bear gap with support from its 20-day moving average, which has ushered the shares higher over the last two months. Up 0.1% at $108.35 today, the stock boasts a healthy 20% year-over-year lead. Nonetheless, every one of the 11 analysts tracking the chocolate maker rate the shares a "hold" or worse. Plus, the average 12-month price target now sits underfoot, at $107.20. Simply said, a round of upbeat analyst attention could send HSY even higher. An exit from recent short sellers could also give Hershey Co shares a boost -- these bearish bets climbed by more than 22% during the two latest reporting periods.

Short Covering Could Help FTD Take Off

FTD has added 40.7% from its early-November low, and found its way into positive year-over-year territory after launching off support at its 80-day moving average earlier this month. That apparently has not been enough to win the affections of analysts, however. At the moment, two out of three brokerage firms call FTD Companies Inc a tepid "hold," with a consensus 12-month price target below the stock's current price of $24.47. Meanwhile, short interest has been ticking higher, representing nearly 10% of the equity's available float. At FTD's average daily volume, it would take close to three weeks to cover all these pessimistic positions -- plenty of fuel to keep the stock's recent rally alive.

Netflix Cuddles Up With Record Highs

With the help of two consecutive earnings blowouts, NFLX has done anything but "chill" since mid-October, snagging a record high of $145.95 on Monday. The shares are pulling back today, off 2% at $140.31, but it appears the supportive 20-day moving average is limiting the stock's losses. Despite this recent fundamental and technical prowess, however, options traders seem to be falling out of love with Netflix, Inc. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day put/call volume ratio of 0.84 rests higher than two-thirds of the past year's readings. The bigger-than-usual appetite for puts is even more prevalent among near-term speculators. NFLX boasts a Schaeffer's put/call open interest ratio (SOIR) of 1.10 -- just 4 percentage points from an annual peak. An unwinding of these bearish options bets could help the shares add to their nearly 60% year-over-year lead.

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