In this article, we will look at the 12 Best Luxury Stocks to Buy Now.
On February 13, Mark Zandi, Moody’s Analytics chief economist, and Jim Paulsen, former chief investment strategist at The Leuthold Group and author of Paulsen Perspectives, appeared on CNBC’s Squawk on the Street to discuss the market and inflation data.
Zandi was of the view that inflation is still on the higher side, with the inflation numbers biased lower because of what happened last October when the government shut down, and the BLS couldn’t collect data effectively, so it just assumed no inflation. If we account for that, year-over-year CPI inflation is closer to 3% than 2%, still on the higher side, especially for necessities, including childcare, housing, healthcare, and other things people need. However, he added that it is not moving higher, and there is some solace in that.
READ ALSO: 11 Best Strong Buy Penny Stocks to Invest In and 10 Best Medical Research Stocks to Buy According to Hedge Funds.
Paulsen, on the other hand, was of the view that the economy overall is weaker than widely anticipated. He does not consider inflation to be an issue and stated that following a burst of inflation during COVID, it has come down basically below 3%, and the obsession with 2% seems “ridiculous” to him. He views it as benign and believes it will get weaker because the economic growth is weak. Paulson believes there is a lot of room for easing.
With these broader market trends in view, let’s narrow down to the best luxury stocks to buy now.
Our Methodology
We sifted through the Finviz stock screener and financial media reports to compile a list of the best luxury stocks and then selected the top 12 stocks that were the most popular among elite hedge funds as of Q3 2025. We sourced the hedge fund data from Insider Monkey’s database. The stocks are ranked in ascending order of hedge fund sentiment.
Note: All data was recorded on February 13.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12 Best Luxury Stocks to Buy Now
12. Coty Inc. (NYSE:COTY)
Number of Hedge Fund Holders: 30
Coty Inc. (NYSE:COTY) is one of the best luxury stocks to buy now. Berenberg cut the price target on Coty Inc. (NYSE:COTY) to EUR 2.55 from EUR 3.62 on February 12 while maintaining a Hold rating on the shares. RBC Capital also cut the price target on the stock to $8 from $10 on February 9, maintaining an Outperform rating and telling investors that the company delivered a beat on organic sales this quarter. It added that the present marks a transitional moment for Coty Inc. (NYSE:COTY), with Markus Strobel taking the helm to restore growth.
The same day, Morgan Stanley also lowered the price target on Coty Inc. (NYSE:COTY) to $3.50 from $4.25 while maintaining an Equal Weight rating on the shares. The firm told investors in a research note that the company’s fiscal Q2 results came slightly below plan, but well below the consensus Q3 EBITDA guidance. It stated that the withdrawal of FY26 guidance was “the key negative” and that it reflects a lack of visibility, with execution under a new interim CEO being the key from here.
Coty, Inc. (NYSE:COTY) is a beauty company that operates a portfolio of luxury brands in color cosmetics, fragrance, and skin and body care. Its Prestige segment operates an array of luxury brands, including Gucci, Marc Jacobs, Miu Miu, Tiffany & Co., Kylie Cosmetics by Kylie Jenner, Hugo Boss, Burberry, Chloe, Calvin Klein, SKKN BY KIM, and more. Coty, Inc.’s (NYSE:COTY) mass beauty products are primarily sold through supermarkets, hypermarkets, drugstores, department stores, e-commerce retailers, and other channels.
11. Harley-Davidson, Inc. (NYSE:HOG)
Number of Hedge Fund Holders: 30
Harley-Davidson, Inc. (NYSE:HOG) is one of the best luxury stocks to buy now. On February 12, DA Davidson adjusted the price target on Harley-Davidson, Inc. (NYSE:HOG) to $25 from $30 while maintaining a Buy rating on the shares, stating that the company delivered fiscal Q4 and fiscal year 2026 guidance well below expectations. However, it added that the management exhibited a clear commitment to a turnaround year while “laying down the hammer” on inventory cleanup.
In another development, BMO Capital also revised the price target on Harley-Davidson, Inc. (NYSE:HOG) to $24 from $30 on February 11 while maintaining an Outperform rating on the shares. The firm told investors that the company’s initial 2026 guidance came in well below expectations, primarily due to pressures arising from “reset” actions, which include a slower HDFS ramp, ongoing channel right-sizing, and steps to bolster the dealer network. BMO further stated that reversing past strategic actions makes sense, with shares getting some air cover until the unveiling of more specifics.
The same day, Harley-Davidson, Inc. (NYSE:HOG) also received a rating update from Baird, which adjusted the price target on the stock to $22 from $28 while maintaining a Neutral rating on the shares following fiscal Q4 results.
Harley-Davidson, Inc. (NYSE:HOG) operates Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services. HDMC manufactures and designs luxury Harley-Davidson motorcycles, motorcycle parts, apparel, and accessories. It operates globally, with operations in the EMEA region, Asia, the United States, Canada, Asia Pacific, and Latin America.
Hedge Fund Resource Center