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.
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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.
10. PVH Corp. (NYSE:PVH)
Number of Hedge Fund Holders: 31
PVH Corp. (NYSE:PVH) is one of the best luxury stocks to buy now. PVH Corp. (NYSE:PVH) announced on February 4 that its Executive Committee of the Board of Directors declared a quarterly cash dividend of $0.0375 per share, payable on March 25, 2026, to stockholders of record on March 4, 2026.
In a separate development, PVH Corp. (NYSE:PVH) reported a collaboration with OpenAI on January 27, announcing a combination of OpenAI’s capabilities with the power of Calvin Klein, TOMMY HILFIGER, and PVH. Management stated that the announcement builds on the PVH+ Plan, which is the company’s multi-year brand-building growth strategy, by amalgamating OpenAI’s technology to PVH Corp.’s (NYSE:PVH) global operations as a means to fuel innovation and unlock new opportunities across the entire value chain.
PVH Corp. (NYSE:PVH) reported that it would co-create custom AI capabilities with OpenAI, embedded in the former’s data- and demand-driven operating model and supporting areas like demand planning, product and design, consumer engagement, and inventory optimization. The collaboration is thus expected to support and complement the talent and creativity of PVH Corp.’s (NYSE:PVH) teams, allowing more intelligent tools, an increase in personalized consumer experiences, and enhanced execution.
PVH Corp (NYSE:PVH) is a luxury fashion company that operates Tommy Hilfiger and Calvin Klein brands. The company undertook a disciplined execution of its brand-building growth plan, which it calls the PVH+ plan, in fiscal Q3 2024.
9. V.F. Corporation (NYSE:VFC)
Number of Hedge Fund Holders: 33
V.F. Corporation (NYSE:VFC) is one of the best luxury stocks to buy now. On February 2, JPMorgan lifted the price target on V.F. Corporation (NYSE:VFC) to $19 from $17 while maintaining a Neutral rating on the shares.
In another development, Williams Trading reaffirmed a Sell rating on the stock on January 30, setting a price target of $14.00 and citing the company’s questionable long-term targets and execution risk. The firm considers V.F. Corporation’s (NYSE:VFC) fiscal year 28 operating margin goal of 10% to be unrealistic, especially since the recent outperformance in The North Face appears heavily driven by the weather and unlikely to be a long-term growth engine at the scale currently envisioned by management.
It also cited the ongoing weakness at Vans, stating that despite the higher average selling prices and digital growth, performance is being affected by weak trends in company-owned stores with reliance on promotions, which, according to the firm, shows limited underlying brand health.
The same day, Piper Sandler also adjusted the price target on V.F. Corporation (NYSE:VFC) to $18 from $14 while maintaining a Neutral rating on the shares following an investor meeting with the company’s management team.
V.F. Corporation (NYSE:VFC) is a fashion company that owns and operates a range of brands in the apparel, outerwear, footwear, backpack, luggage, and accessories categories. Its brands include The North Face, Vans, JanSport, Timberland, Kipling, and more.
8. Capri Holdings Limited (NYSE:CPRI)
Number of Hedge Fund Holders: 38
Capri Holdings Limited (NYSE:CPRI) is one of the best luxury stocks to buy now. Capri Holdings Limited (NYSE:CPRI) received a rating update from TD Cowen on February 4, with the firm lowering the price target on the stock to $26 from $32 while maintaining a Buy rating on the shares. It told investors that the company delivered better-than-expected fiscal Q3 results, with its product getting better, but not without higher expectations keeping the stock back.
The same day, Goldman Sachs also cut the price target on Capri Holdings Limited (NYSE:CPRI) to $24 from $27 while maintaining a Neutral rating on the shares. The firm told investors in a research note that the company’s fiscal Q3 results exhibited sequential improvement in Michael Kors full-price sales and stronger-than-expected Jimmy Choo performance. However, wholesale reset and outlet pressure continue to weigh on near-term results, according to Goldman Sachs.
Capri Holdings Limited (NYSE:CPRI) also received a rating update from UBS on February 4. The firm cut the price target on the stock to $22 from $25 and maintained a Neutral rating on the shares, stating that the company is executing self-help initiatives to restore brand momentum. The fiscal Q3 report shows that the turnaround is broadly on track, according to the firm. However, it believes that the recovery appears more back-half weighted with a higher risk that the turnaround takes longer than previously anticipated.
Capri Holdings Limited (NYSE:CPRI) manages and operates globally popular luxury brands such as Jimmy Choo, Versace, Michael Kors, and others. The Versace segment includes luxury apparel, accessories, and footwear. Jimmy Choo’s segment covers luxury footwear, small leather goods, accessories, and handbags. The Michael Kors segment operates through four retail formats: lifestyle stores, e-commerce sites, collection stores, and outlet stores.
7. Lululemon Athletica Inc. (NASDAQ:LULU)
Number of Hedge Fund Holders: 42
Lululemon Athletica Inc. (NASDAQ:LULU) is one of the best luxury stocks to buy now. Telsey Advisory reaffirmed a Hold rating on Lululemon Athletica Inc. (NASDAQ:LULU) on January 26, setting a price target of $215.
In another development, BTIG maintained a Buy rating on the stock on January 22, setting a price target of $303.00 and telling investors that it believes the management is responsive to customer feedback and willing to refine launches in real time, corroborated by factors such as the reintroduction of the Get Low collection and the company’s quick adjustments to product messaging and fit guidance. The firm views the issues surrounding sizing and sheerness as execution missteps instead of structural product problems, and believes that customer reception can be improved over time with clearer positioning and better education.
BTIG further expects the spring to be a significant driver for the stock, coinciding with the release of a broader refresh of the company’s assortment and marketing. Lululemon Athletica Inc. (NASDAQ:LULU) plans to meaningfully expand the share of new styles while introducing new core collections, factors that the firm considers some of the key catalysts that investors’ expectations are failing to fully reflect.
Founded in 1988, Lululemon Athletica Inc. (NASDAQ:LULU) is a luxury athletic apparel, footwear, and accessories retailer that sells leisure-athletic wear and accessories such as socks, bags, and yoga mats for fitness activities.
6. The RealReal, Inc. (NASDAQ:REAL)
Number of Hedge Fund Holders: 42
The RealReal, Inc. (NASDAQ:REAL) is one of the best luxury stocks to buy now. The RealReal, Inc. (NASDAQ:REAL) received a bullish rating update from Northland Securities on January 14, with the firm reaffirming a Buy rating on the stock and raising the price target to $20.00 from $16.00.
The firm anticipates the company to sustain double-digit revenue expansion into 2027, driven primarily by solid growth in its core consignment business while maintaining strong gross margins. Northland Securities also expects meaningful operating leverage at the same time, with key cost categories including technology, operations, and SG&A declining as a percentage of revenue, and driving a sharp raise in free cash flow and a significant improvement in adjusted EBITDA margins.
The firm also cited several other key competitive advantages that support the bullish outlook on the stock, including The RealReal, Inc.’s (NASDAQ:REAL) position and scale as the largest online marketplace for authenticated luxury goods, its extensive proprietary data on both genuine and counterfeit items, and its long-established brand trust around authenticity. In another development, Wells Fargo reaffirmed a Buy rating on The RealReal, Inc. (NASDAQ:REAL) on January 13, setting a price target of $22.
The RealReal, Inc. (NASDAQ:REAL) is an online marketplace involved in the consignment of luxury goods across multiple categories, including women’s, men’s, jewelry, kids, watches, art, and home. The company sells pieces from famous designers including Gucci, Chanel, Hermes, Prada, Christian Louboutin, Louis Vuitton, Prada, Celine, Jimmy Choo, Burberry, and Valentino.
5. The Estée Lauder Companies Inc. (NYSE:EL)
Number of Hedge Fund Holders: 45
The Estée Lauder Companies Inc. (NYSE:EL) is one of the best luxury stocks to buy now. On February 10, The Estée Lauder Companies Inc. (NYSE:EL) was downgraded to Hold from Buy by HSBC, with the firm adjusting the price target to $106 from $105. HSBC cited the company’s “modest” organic sales upgrade in the quarter, stating that it “underwhelmed” investors relative to expectations heading into the print. The firm told investors in a research note that The Estée Lauder Companies Inc.’s (NYSE:EL) organic sales growth is set to slip in fiscal Q3, and that it sees tougher China compared with easier U.S. comparatives “offsetting one another” in the company’s second half of the fiscal year.
In another development, B. Riley lifted the price target on The Estée Lauder Companies Inc. (NYSE:EL) to $105 from $100 on February 9, maintaining a Neutral rating on the shares and stating that while the company beat Street expectations with its fiscal Q2 report, expectations were elevated into the print. The firm also attributed the price target increase to stronger margins assumptions.
Estée Lauder Companies Inc. (NYSE:EL) is a globally popular manufacturer of hair care, skincare, makeup, and fragrance. Its elaborate product portfolio includes Estée Lauder, Clinique, MAC, Bobbi Brown, Jo Malone London, Too Faced, La Mer, and others. The company sells its products through multi-brand retailers, department stores, prestige salons and spas, upscale perfumeries, and pharmacies.
4. Ferrari N.V. (NYSE:RACE)
Number of Hedge Fund Holders: 46
Ferrari N.V. (NYSE:RACE) is one of the best luxury stocks to buy now. On February 13, Evercore ISI reaffirmed a Buy rating on Ferrari N.V. (NYSE:RACE) and set a price target of $475. The rating update came after Ferrari N.V. (NYSE:RACE) announced its full-year 2025 results on February 10, reporting revenues up 7% to over Euro 7.1 billion, an EBIT margin up 120 basis points to 29.5%, and industrial free cash flow surpassing Euro 1.5 billion. Management attributed the positive trends to product mix, sponsorships, and personalizations, adding that the demand for Ferrari is “very strong”, managed with discipline in every market reflecting the company’s exclusivity model, with its order book extending towards the end of 2027.
In another development, Ferrari N.V. (NYSE:RACE) also unveiled the interior design and announced the name of its visionary new full-electric sports car: Ferrari Luce. According to management, the unveiling marks a new chapter in the company’s history, further stating that the third and final step of the Ferrari Luce reveal, the world première, will take place in Rome on May 25, 2026.
Ferrari NV (NYSE:RACE), more commonly known as Ferrari, is an Italy-based manufacturer, designer, and retailer of luxury sports cars. It also produces one-off and limited-series cars and operates under the Ferrari brand. The company has a wide range of cars and operates actively in more than 60 markets across the globe through a network of authorized dealers.
3. Ralph Lauren Corporation (NYSE:RL)
Number of Hedge Fund Holders: 58
Ralph Lauren Corporation (NYSE:RL) is one of the best luxury stocks to buy now. Telsey Advisory reaffirmed a Buy rating on Ralph Lauren Corporation (NYSE:RL) on February 10, setting a price target of $435. The rating update came after the company reported strong fiscal Q3 2026 holiday results on February 5, exceeding expectations. Fiscal Q3 revenue rose 12% on a reported basis and 10% in constant currency, surpassing expectations and reflecting healthy demand across geographies.
The company further reported earnings per diluted share of $5.82 for the quarter, up 25% compared to the prior year on a reported basis and $6.22, up 29% on an adjusted basis, excluding restructuring-related and other net charges. For comparison, earnings per diluted share for fiscal Q3 2025 came up to $4.66 on a reported basis and $4.82 on an adjusted basis, excluding restructuring-related and other net charges.
Ralph Lauren Corporation (NYSE:RL) further announced that it expects revenues to increase high-single to low-double digits on a constant currency basis in fiscal 2026, up from its prior outlook of a 5% to 7% increase. It still expects foreign currency to benefit revenue growth by approximately 200 to 250 basis points in fiscal 2026, based on current exchange rates.
Ralph Lauren Corporation (NYSE:RL) is a luxury fashion retailer specializing in designing, marketing, and selling luxury lifestyle products, including apparel, footwear, accessories, fragrances, home, and hospitality. Its brand portfolio spans Ralph Lauren, Polo Ralph Lauren, Ralph Lauren Collection, Lauren Ralph Lauren, Ralph Lauren Purple Label, Double RL, and others. Besides manufacturing luxury items for men, women, and children, the company’s hospitality segment includes restaurants like New York City’s The Polo Bar and Chicago’s RL Restaurant.
2. Tapestry, Inc. (NYSE:TPR)
Number of Hedge Fund Holders: 60
Tapestry, Inc. (NYSE:TPR) is one of the best luxury stocks to buy now. BNP Paribas initiated coverage of Tapestry, Inc. (NYSE:TPR) with an Outperform rating on February 13, setting a price target of $176. The company also received a rating update from TD Cowen on February 10, with the firm lifting the price target on the stock to $175 from $150 while maintaining a Buy rating on the shares. The firm updated its model to take into account the fiscal Q2 2026 earnings results.
UBS also lifted the price target on Tapestry, Inc. (NYSE:TPR) to $141 from $125 on February 9, maintaining a Neutral rating on the shares. The rating updates came after Tapestry, Inc. (NYSE:TPR) reported its fiscal Q2 2026 results on February 5, reporting a revenue of $2.5 billion, up 14% compared to the prior year period. The company also attained pro forma revenue growth 18%, supported by a 25% gain at the coach brand.
Tapestry, Inc. (NYSE:TPR) drove operating margin expansion of 620 basis points on a GAAP Basis and 390 basis points on a non-GAAP basis, supported by gross margin increase and SG&A leverage. The company now expects to return $1.5 billion to shareholders through dividends and share repurchases in Fiscal 2026. This is around 100 percent of its anticipated adjusted free cash flow, and reflects an increase from its previous outlook of $1.3 billion, supported by a robust balance sheet, considerable free cash flow generation, and strong operational results.
Tapestry, Inc. (NYSE:TPR) operates a global house of luxury brands, including Kate Spade New York, Coach, and Stuart Weitzman.
1. Carnival Corporation & plc (NYSE:CCL)
Number of Hedge Fund Holders: 69
Carnival Corporation & plc (NYSE:CCL) is one of the best luxury stocks to buy now. Carnival Corporation & plc (NYSE:CCL) announced on February 5 the opening of new voyages by the Holland America Line across some of the most sought-after vacation regions. It announced around three dozen itineraries in 2027-2028, including Mexico, Hawaii, the Panama Canal, and the Pacific Coast, with the new season showcasing longer stays in Honolulu, Hawaii, and extended exploration of Mexico’s Sea of Cortez.
Carnival Corporation & plc (NYSE:CCL) also received rating updates from several analysts since the beginning of the year, including Citi, which reaffirmed a Buy rating on the stock on January 14 and set a $39 price target.
Carnival Corporation & plc (NYSE:CCL) also received a rating update from TD Cowen on January 13, which lifted the price target on the stock to $38 from $35 while maintaining a Buy rating. The firm adjusted price targets in the cruise lines group as part of its 2026 outlook and told investors that, despite Caribbean yield headwinds, the underlying cruise demand is strong, with capacity trends favorable through fiscal 2029. It thus expects share upside in 2026 as investors look past “temporary” Caribbean pressures.
Carnival Corporation & plc (NYSE:CCL) is a global cruise and luxury leisure travel company with a portfolio of cruise lines, including AIDA Cruises, Carnival Cruise Line, Princess Cruises, Costa Cruises, Cunard, Holland America Line, P&O Cruises (Australia), and more. Its segments are divided into NAA cruise operations, Europe cruise operations, Cruise Support, and Tour and Other.
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