So, here are the three stocks you would take on a date. The practicality of these three companies will come through in my perfect date guide. Now, a man must know how to make his l (NYSE:LTD)ady happy, so I have identified where to shop, where to eat, and what to watch. The answer to these three questions can be summarized with Victoria’s Secret, The Walt Disney Company (NYSE:DIS), and The Cheesecake Factory Incorporated (NASDAQ:CAKE). This is the ultimate date combination, and of course, makes for a very strong stock portfolio too!
You have to buy her the right clothes
L Brands Inc (NYSE:LTD) operates the Victoria’s Secret and Bath & Body Works retail chains. The company is heavily focused on international expansion with Europe being a core focus market. The company’s product strategy is effective as almost every woman loves Victoria’s Secret. According to Piper Jaffray’s, Victoria’s Secret/Pink is ranked fifth most popular brand among teenagers.
Going forward, the company is projected to grow earnings by 10% on average over the next five years. This earnings growth will be driven by share buybacks, store openings, cost management, and same-store-sales growth. The company pays its investors a 2.40% dividend yield. The company trades at 19.6 times earnings, which could be seen as being high. But, the retail sector, in general, trades at a 19.4 price to earnings multiple, making it reasonable relative to other company’s within the same sector.
Know where to eat out
The Cheesecake Factory Incorporated (NASDAQ:CAKE) is an amazing place to wine and dine. No, literally, walk inside the restaurant, and you will see some of the most decadent interior design you have ever seen in a restaurant. In fact, high income teenagers rank it as best American Cuisine, according to Piper Jaffray. The reasoning is pretty simple. The waiters/waitresses are extremely friendly, and the food tastes delicious (try the meat loaf, or Salisbury steak). Plus, the restaurants are located in some of the best locations in the world (shopping malls). You would win points if you took your date to this restaurant, which is why I am adding it to my list of stocks that you would bring on a date!
The company trades at a 22.1 earnings multiple which might be pretty high for some of you. But, the restaurant industry trades at a 23.1 earnings multiple, making it reasonable from a sector standpoint. The company is projected to grow earnings by 13.84% on average over the next five years, and it also pays investors a 1.16% dividend yield.
The movies
Movies are a classic to dating, but can also be a welcomed addition to your investment portfolio. The Walt Disney Company (NYSE:DIS) creates some of the best blockbuster hits with titles like Iron Man 3, Thor, The Avengers, etc. Generally speaking, you want to hit the box office if you’re out on a date. So, buying movies could be a great investment strategy especially if you’re trying to time the cyclical recovery of the broader economy.
The Walt Disney Company (NYSE:DIS) isn’t just a movie company though. If you want to impress your date, take her to Disneyland theme parks and resorts (two thumbs up to that). But really, the company makes profit from its media segment and buries it in real estate (hence the reason it has $74.89 billion in assets).
The company is expected to grow earnings by 12.37% on average over the next five years. The growth in earnings will be driven by the opening of theme parks, increased demand for cable viewing, along with growth in ticket sales from upcoming titles like Star Wars and The Avengers 2. The company also compensates its investors with a 1.19% dividend yield.
The stock currently trades at a 19.5 earnings multiple. The earnings multiple is reasonable when you consider the company’s diversified portfolio of businesses paired with the consistent growth in earnings it has been able to deliver.
Conclusion
I have summarized the best place to eat, shop, and watch movies. You can use this list to impress a lady, or beef up your investment portfolio.
Alexander Cho has no position in any stocks mentioned. The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Walt Disney. Alexander is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article 3 Stocks You Would Want to Take on a Date originally appeared on Fool.com and is written by Alexander Cho.
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