12 Best Consumer Discretionary Stocks to Buy According to Analysts

2. PVH Corp. (NYSE:PVH)

Upside Potential: 66%

Number of Hedge Fund Holders: 27

PVH Corp. (NYSE:PVH) is a global apparel company that owns and manages a diverse portfolio of brands, including Calvin Klein and Tommy Hilfiger. The company designs, markets, and sells a broad range of apparel, accessories, and footwear through various distribution channels. PVH has a significant international presence, with 70% of its revenue generated outside the U.S.

The majority of PVH Corp. (NYSE:PVH)’s revenue comes from Calvin Klein and Tommy Hilfiger, with only 10% coming from Heritage Brands, parts of which have already been divested. The company continued to face revenue growth challenges in Q3 2024 (reported in early December), with revenue declining by 5% to $2.3 billion, though this was better than the company’s guidance of a 6%-7% decrease. The execution of the company’s PVH+ Plan, initiated during Investor Day 2022, remains central to its growth strategy. PVH+ is a multi-year strategic plan aimed at transforming Calvin Klein and TOMMY HILFIGER into the most desirable lifestyle brands globally and positioning PVH Corp. (NYSE:PVH) as one of the highest-performing brand groups in the industry. Market would become more positive when this plan helps improve earnings through effective cost management and strategic initiatives. In their reports in first week of February, Barclays and Evercore ISI analysts reiterated their Buy rating with price targets of $98 and $139, respectively.

During the results call, CEO Stefan Larsson discussed the progress made on PVH+ plan:

“We are building systematic and repeatable progress across the business, where we increasingly connect product strength, consumer engagement, and marketplace execution to our data and demand-driven operating model. In North America we continue to deliver strong profitability, in Europe, we are gaining great traction with our quality of sales initiative which led to increased sell-throughs and sequentially improved wholesale orders, and in Asia Pacific, we are delivering on our plan and drove growth across all channels. Looking ahead, we are focused on driving next level execution of the PVH+ Plan to build our brands for sustainable, profitable growth.”