10 Best Clothing Stocks To Buy Now

5. Kontoor Brands, Inc. (NASDAQ:KTB)

Upside from Current Levels: 18.01%

Kontoor Brands Inc. (NASDAQ:KTB) is a global lifestyle apparel company with a portfolio of brands, including Lee, Wrangler, Rock & Republic. The company was formed in 2019 when VF Corporation spun off its denim brands into a new company: Kontoor Brands. While it also licenses apparel, accessories, and footwear, but denim remains its specialty. It targets a diverse customer base, including women and men of varying ages and income levels.

The company is expanding its specialties, with Lee launching its first-ever golf collection for men in May. formerly famous for its casual apparel, the brand now offers versatile performance-stretch bottoms and tops to transition from officewear to sportswear and provide its customers with a wide array of lifestyle apparel.

While Kontoor Brands, Inc. (NASDAQ:KTB) is not the largest company out there, it has been receiving considerable attention due to its substantial price hike in the last few months. Trading at a forward P/E ratio of 14.55, the company is trading at a 5.30% discount to its sector.

But is Kontoor Brands, Inc. (NASDAQ:KTB) profitable? The company has been growing its revenue at a CAGR of 4.63% over the past three years, and has experienced growth with a CAGR of 19.60% in its diluted EPS in the same time frame.

Kontoor Brands, Inc. (NASDAQ:KTB) holds a consensus Buy rating among analysts, and its median price target of $68.45 indicates an upside of 18.01% from current levels. Kontoor Brands, Inc. (NASDAQ:KTB) is held by 24 hedge funds as of Q2 2024, ranking it one our list of the best clothing stocks to buy.