10 Best Clothing Stocks To Buy Now

7. Gildan Activewear Inc. (NYSE:GIL)

Upside from Current Levels: 17.68%

Gildan Activewear Inc. (NYSE:GIL) manufactures and sells activewear, socks, underwear, hosiery, and legwear under its significant brand portfolio, including Gildan, Alstyle, Comfort Colors, American Apparel, Anvil, GOLD TOE, Secret, Peds, and Silks. Formerly known as Textiles Gildan Inc., the company transitioned to Gildan Activewear Inc. in 1995 after deciding to excel in the activewear apparel sector.

The company is known for its blend of affordability and quality, and its 100% cotton t-shirts make it a prominent name in the US print wear industry. It holds a competitive advantage by functioning as a low-cost, vertically integrated manufacturer with capacity-driven growth. Shareholders and investors expressed uncertainty about the company when its 20-year CEO and co-founder Glenn Chamandy was dismissed from his position over serious disagreements about succession and strategy with the board. However, he regained his position after a months-long proxy war after the entire board of directors resigned, causing the new CEO, Vince Tyra, to step down.

Since Gildan (NYSE:GIL) is Chamandy’s family company, his re-entry into management with his substantial experience has somewhat comforted skeptical onlookers. The stock sports a consensus Buy rating, with its median price target of $39.39 presenting an upside of 17.68% from current levels. Gildan Activewear Inc. (NYSE:GIL) is trading at a P/E ratio of 13.32, at a 13% discount to its sector.

Investors are bullish on the stock, with Canaccord Genuity and Citigroup maintaining a Buy rating. Canaccord Genuity also upped their price target to $43 from $42 on 2nd May. The change in management sheds a positive light on the company, which has the potential to grow under its previous operating model. 22 hedge funds held Gildan Activewear Inc. (NYSE:GIL) as of Q2 2024.