5 Best Fashion and Apparel Stocks to Invest In

1. Lululemon Athletica (NASDAQ:LULU)

No of HFs: 50

Total Value of HF Holdings: $1.27 Billion

The top fashion and apparel stock to invest in is LULU. At the end of September, a total of 50 hedge funds tracked by Insider Monkey were long this stock. The top hedge fund holder of this stock is Ken Griffin’s Citadel Investment Group which had $264 invested in the stock at the end of September. LULU was mentioned as one of the 12 Best Fitness Stocks to Buy Now. Brown Advisory mentioned a few of its comments on LULU in its Q2 2020 investor letter:

“The recent market volatility afforded us the opportunity to swap out of our position in TJX Companies into Lululemon Athletica. While nothing at TJX was broken, our action was purely an upgrade from one good business model into an even better one, in our view. We believe Lululemon has an exceptional business model within the athleisure apparel space. The company has complete control over its product line distribution, which is rather unique for an apparel company. This gives the company a favorable margin structure, coupled with a fast-growing top line. As compared to TJX, Lululemon also benefits from a higher percentage of sales from e-commerce, which is becoming more important in the near and long term.”

Please also see 10 Most Expensive Fashion Brands In the World and 10 Underperforming Stocks Targeted By Short Sellers.

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