12 Best Italian Stocks to Buy in 2025

6) Ermenegildo Zegna N.V. (NYSE:ZGN)

Number of Hedge Fund Holders: 13

Average Upside Potential: ~15.4%

Founded in 1910 in Trivero, Italy, Ermenegildo Zegna N.V. (NYSE:ZGN) is a global luxury company with a leading position in the high-end menswear business. BofA upped the company’s price target to $10.40 from $8.90, keeping a “Buy” after the company reported Q4 organic revenue growth of 3% after 3 quarters of decline. Notably, the analyst believes that trends throughout all brands and regions saw an improvement sequentially and surpassed expectations. Also, the analyst says there is a greater visibility to revenue reacceleration for Ermenegildo Zegna N.V. (NYSE:ZGN).

In FY 2024, the Zegna segment’s revenues, including the ZEGNA brand, Textile, and Other, came in at €1,348.8 million compared to €1,322.0 million in FY 2023. The revenues in Q4 stood at €404.4 million, reflecting a growth of 5.0% YoY, driven by strong performance from the ZEGNA brand which more than offset the slowdown in the Textile division. The company anticipates 2025 to play out differently throughout various geographies.

While it has seen strong performance in the Americas and EMEA in the initial weeks of January, Ermenegildo Zegna N.V. (NYSE:ZGN) expects volatility in consumer demand in China. That being said, it remains prepared to navigate such challenges as a result of its focus on priorities. These priorities include building on the brand equity, focusing investments on key strategic projects, and doubling down on the existing strengths.