10 Best Clothing Stocks To Buy Now

3. Ermenegildo Zegna N.V. (NYSE:ZGN)

Upside from Current Levels: 23.60%

Ermenegildo Zegna N.V. (NYSE:ZGN) is a luxury brand that manufactures and designs menswear, leather goods, footwear, and other accessories under its Zegna and Thom Browne brands. It also offers luxury wear for women and children under Thom Browne. However, it is famous for symbolizing iconic Italian luxury menswear. The company also acquired a long-term license for Tom Ford Fashion by the Estée Lauder Companies in 2023. Ermenegildo Zegna N.V. operates a wide network of luxury flagship boutiques and concessions, and has dressed famous world leaders and celebrities in its quest to solidify its image of Italian luxury. The company is continuing its partnership with Real Madrid, acting as their official luxury travel-wear partner for the 2023-2024 season and dressing one of the largest football teams in the world with its unique style.

Why does Ermenegildo Zegna N.V. (NYSE:ZGN) rank on our list of the best clothing stocks to buy? The company opened up 24 new stores in Q1 2024, taking its total outlets to 277 globally. The company’s revenue stood at €463.2 million ($507.3 million), experiencing an 8% year-over-year increase. Revenues from the ZEGNA brand surpassed the growth of the overall segment, growing to €324.9 million ($355.86 million) in Q1 2024 from €319.3 million ($349.73 million) in Q1 2023. Overall, the Americas led the company’s revenues, with a rise in Direct-to-Consumer (DTC) sales being the primary driver.

The company’s revenue grew by a CAGR of 23.14% in the past three years, and is currently trading at a forward multiple of 21 at a 39% premium to its sector. Ermenegildo Zegna N.V. (NYSE:ZGN)’s median price target of $11.0 indicates an upside of 23.60% from current levels. The stock sports a Moderate Buy rating among analysts. 9 hedge funds hold Ermenegildo Zegna N.V. (NYSE:ZGN) as of Q2 2024.