Mother’s Day is coming up this Sunday, May 14, and that usually means scrambling for flowers and chocolates. After a while, the season tends to be more of the same. And yes, it’s the thought that counts, as Moms always say. But why not put a little extra thought for this year’s celebration?
Rather than the usual display of gratitude, go for something that Mom can continuously benefit from. The financial markets are back on a roll, but some of the best stocks are still available on a discount. These include names from industries that all Moms understand, including food, fashion and fitness.
Even better, these sectors are also stepping up in terms of empowering women executives.
The best stocks idea isn’t just a Mother’s Day gimmick. According to The Wall Street Journal, women tend to live longer, but are worryingly underperforming in financial literacy. This sets them up for future difficulties, especially if they are dependent on their husbands. Even more problematic, most men are not satisfactorily literate with money. This dynamic can therefore potentially cause serious pain.
From that perspective, I couldn’t think of a better gift for Mother’s Day. By acquiring the best stocks that she’ll appreciate, you can organically encourage financial planning and literacy. Plus, it’s a unique way to say “thank you” to the sole reason of your existence.
Who knows? Maybe you can awaken Mom’s hidden investing talents! Here are the five best stocks to buy for Mother’s Day.
Best Stocks to Buy for Mother’s Day: Coach Inc (COH)
The company is one of the most recognized names in the fashion accessory business. But rather than simply buying a handbag or other accouterments, why not capitalize on the success of COH?
It just so happens that Coach is one of the best stocks you can buy this year.
This is significant primarily because the retail sector is a landmine. Companies like Dillard’s, Inc. (NYSE:DDS) and Macy’s Inc (NYSE:M) are confirming that catering to an affluent base doesn’t guarantee results. In contrast, analysts love COH for pulling together a series of earnings beats. The most recent beat for their Q3 FY 2017 report was widely heralded for shifting its focus from sales growth to profitability.
Investors are also piling into the COH recovery story. Year-to-date, shares are up nearly 31%, handily beating the benchmark SPDR S&P 500 ETF Trust (NYSEARCA:SPY). But COH should not be confused as a one-off event. Momentum has been building for quite some time. The recent earnings report simply affirms investor confidence.
As such, you’re going to be hard-pressed to find a better stock for Mother’s Day than COH.
Best Stocks to Buy for Mother’s Day: TJX Companies Inc (TJX)
Through its leading brands T.J. Maxx and Marshalls, TJX has been saving families millions of dollars each year. While they specialize in attractive pricing, TJX stock also happens to be a pretty good deal itself.
That might sound like a strange thing to say for a retailer. After all, e-commerce names like Amazon.com, Inc. (NASDAQ:AMZN) and eBay Inc (NASDAQ:EBAY) have done a number on the brick-and-mortars. That said, I believe that TJX is one of the best stocks for Mother’s Day because it’s Amazon resistant.
Stores with high-ticket items usually have the most to fear from e-commerce. But lower-ticket items at physical stores don’t attract the same competitiveness because the “benefit of now” outweighs the cost savings. In addition, you don’t know if clothing will truly fit if you buy online.
The steady rise of TJX stock proves this concept. It’s a consistent winner, irrespective of the underlying economy. This isn’t an opportunity that will make you rich — on a YTD basis, TJX is up only 7.4%. But it will keep chipping away, benefiting future generations of Moms.
Best Stocks to Buy for Mother’s Day: Cheesecake Factory Inc (CAKE)
Although it’s not the high-flyer it used to be, CAKE stock has weathered multiple storms. Against the core competition, the Cheesecake Factory does very well for itself, thanks to its trendy decorum and loyal customers.
But there’s another reason why investors should consider CAKE. Despite some concerns in the overall economy, the food and beverage services sector has been steadily rising since January 2010. In March, total sector sales increased 3% year-over-year, a fairly robust move given the circumstances. While positive industry sentiment won’t help everyone, CAKE has tremendous brand power that it can leverage.
True, branding didn’t help Cheesecake Factory in its Q1 earnings report, which missed slightly against the top and bottom line. As a result, CAKE took a sizable hit. However, I see this as a buying opportunity. The technical trend is still positive despite the drop. Also, its international expansion will necessarily require expenditures.
So long as the customers keep coming, CAKE is one of the best stocks to hold for the long haul.
Best Stocks to Buy for Mother’s Day: Lululemon Athletica Inc. (LULU)
So far this year, LULU stock has been crushed, shedding 18% in the markets. Rather than being one of the best stocks, it looks like one of the worst. So why should LULU fall under a Mother’s Day recommendation?
First, Lululemon’s technical chart has yet to break a rising support line that has been established since the summer of 2014. I admit that the gap down at the tail end of March looks really ugly. However, if LULU can develop a baseline of support, it could turn out to be a very shrewd play.
This bullish assessment isn’t just based on a contrarian reaction. Lululemon has a very clean balance sheet that’s unencumbered with debt. It also has extremely enviable profitability margins. Finally, as InvestorPlace contributor Ian Bezek notes, “The company sports dozens of patents on its products, particularly in the fabric department.” Lululemon has defended its intellectual property before, most notably with PVH Corp’s (NYSE:PVH) Calvin Klein in 2012.
What we’re left with is a financially disciplined organization that just needs the right spark. LULU has the right amount of risk reward balance that Moms would appreciate.
Best Stocks to Buy for Mother’s Day: PepsiCo, Inc. (PEP)
On a YTD basis, PEP stock is up over 7.7%, enjoying a fairly strong start to the year. As a bonus, PepsiCo is beating out rival The Coca-Cola Co (NYSE:KO). But the more important argument is consistency. Since 1972, annual returns for PEP average 11.7% despite some awful years like 2008. While the beverage maker isn’t a growth king, it will more than likely keep you right-side up.
Led by CEO Indra K. Nooyi, she has expertly steered PepsiCo in some of the most challenging economic cycles. As proof of her abilities, PEP stock has yet to experience a negative return since the collapse of 2008. Although challenges still remain, PepsiCo has strong profitability margins that should continue to make them an investor favorite.
If you’re looking for a solid earner for Mother’s Day that’s also short on negative surprises, PEP is the way to go.
As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities.