In this article, we discuss the 5 best clothing stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 13 Best Clothing Stocks to Buy Now.
5. The TJX Companies, Inc. (NYSE:TJX)
Number of Hedge Fund Holders: 59
The TJX Companies, Inc. (NYSE:TJX) is an off-price apparel and home fashions retailer. On November 16, Telsey Advisory analyst Dana Telsey maintained an Outperform rating on The TJX Companies, Inc. (NYSE:TJX) stock and raised the price target to $105 from $100, backing the firm to take first quarter momentum into the third quarter earnings.
At the end of the second quarter of 2023, 59 hedge funds in the database of Insider Monkey held stakes worth $2 billion in The TJX Companies, Inc. (NYSE:TJX), compared to 73 in the preceding quarter worth $2.7 billion.
In its Q2 2023 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and The TJX Companies, Inc. (NYSE:TJX) was one of them. Here is what the fund said:
“Top heavy leadership has overshadowed weakness across much of the equity market. We took advantage of the narrow breadth in the second quarter to increase our exposure to the consumer discretionary sector with two purchases that further enhance portfolio diversification and should help support consistent performance through a full cycle.
The TJX Companies, Inc. (NYSE:TJX) is the leading off-price apparel and home furnishings retailer known for its TJ Maxx, Marshalls and HomeGoods brands, with 4,800 global locations. We see TJX as a differentiated retailer offering shoppers a combination of value and convenience with continued share gain opportunity against large addressable U.S. markets for apparel and home decor. We also see room for TJX to modestly expand margins on the back of sales leverage and as freight, shrink and wage pressures ease. While TJX is not immune to macro risks, we see the company as relatively well-positioned even in the event of an economic deterioration as benefits from better inventory availability and consumer trade-down accrue.”
4. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 70
NIKE, Inc. (NYSE:NKE) markets athletic footwear and apparel. On November 16, Truist analyst Joseph Civello initiated coverage of NIKE, Inc. (NYSE:NKE) stock with a Hold rating and a price target of $108, noting there was bullish sentiment around athletic apparel and footwear trends.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Fundsmith LLP is a leading shareholder in NIKE, Inc. (NYSE:NKE) with 6.7 million shares worth more than $640 million.
In its Q2 2023 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and NIKE, Inc. (NYSE:NKE) was one of them. Here is what the fund said:
“Athletic footwear and apparel company NIKE, Inc. (NYSE:NKE), also a beneficiary of pandemic pull-forward demand, lagged primarily around fears about consumer resilience and potential pressure on Nike’s business in a macroeconomic slowdown.”
3. Ross Stores, Inc. (NASDAQ:ROST)
Number of Hedge Fund Holders: 54
Ross Stores, Inc. (NASDAQ:ROST) operates off-price retail apparel and home fashion stores. On November 17, investment advisory BMO Capital maintained an Outperform rating on Ross Stores, Inc. (NASDAQ:ROST) stock and raised the price target to $138 from $125, noting the top-line earnings beat of the firm in the third quarter was traffic-driven.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm First Eagle Investment Management is a leading shareholder in Ross Stores, Inc. (NASDAQ:ROST) with 3.6 million shares worth more than $414 million.
2. Burlington Stores, Inc. (NYSE:BURL)
Number of Hedge Fund Holders: 41
Burlington Stores, Inc. (NYSE:BURL) is an American department store chain specializing in clothing and footwear, as well as home decor and furniture. On November 14, investment advisory Deutsche Bank maintained a Buy rating on Burlington Stores, Inc. (NYSE:BURL) stock and lowered the price target to $186 from $202, noting that discretionary data points for third quarter had been mixed.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Holocene Advisors is a leading shareholder in Burlington Stores, Inc. (NYSE:BURL) with 1.5 million shares worth more than $206 million.
1. Lululemon Athletica Inc. (NASDAQ:LULU)
Number of Hedge Fund Holders: 61
Lululemon Athletica Inc. (NASDAQ:LULU) designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. On November 16, investment advisory Truist initiated coverage of Lululemon Athletica Inc. (NASDAQ:LULU) stock with a Buy rating and a price target of $500, noting the firm had one of the strongest brand loyalty in the activewear industry.
At the end of the second quarter of 2023, 61 hedge funds in the database of Insider Monkey held stakes worth $3 billion in Lululemon Athletica Inc. (NASDAQ:LULU), compared to 63 in the preceding quarter worth $3.5 billion.
In its Q1 2023 investor letter, Kinsman Oak Capital Partners, an asset management firm, highlighted a few stocks and Lululemon Athletica Inc. (NASDAQ:LULU) was one of them. Here is what the fund said:
“What is relatively new, however, is that we are beginning to see substantial write-downs and impairment charges. For instance, Lululemon Athletica Inc. (NASDAQ:LULU) is already exploring a sale of Mirror, the struggling fitness technology company it bought less than three years ago for half a billion dollars. Lululemon executives recently announced a $433 million impairment charge on the business (-89%). That is not an insignificant amount of money.”
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