5 Best Clothing Stocks To Buy Now

In this article, we discuss 5 best clothing stocks to buy now. If you want to see more stocks in this selection, check out 12 Best Clothing Stocks To Buy Now. 

5. Ross Stores, Inc. (NASDAQ:ROST)

Number of Hedge Fund Holders: 43

Ross Stores, Inc. (NASDAQ:ROST) is a California-based company that operates off-price retail apparel and home fashion stores. The stores primarily offer apparel, accessories, footwear, and home fashions. In addition to posting market-beating Q3 2022 results, Ross Stores, Inc. (NASDAQ:ROST) declared on November 17 a $0.31 per share quarterly dividend, in line with previous. The dividend is payable on December 30, to shareholders of the company as of December 6. 

On November 21, Barclays analyst Adrienne Yih raised the price target on Ross Stores, Inc. (NASDAQ:ROST) to $127 from $98 and reiterated an Overweight rating on the shares. The company’s Q3 earnings report “was the second proof point that the balance of power has shifted in Off-Price’s favor,” the analyst wrote in a research note.

According to Insider Monkey’s third quarter database, 43 hedge funds held stakes in Ross Stores, Inc. (NASDAQ:ROST), and Jean-Marie Eveillard’s First Eagle Investment Management is the leading stakeholder of the company. 

Here is what Madison Mid Cap Fund has to say about Ross Stores, Inc. (NASDAQ:ROST) in its Q3 2022 investor letter:

“Ross Stores is one of our longest-tenured holdings. Its profits have gyrated wildly since the beginning of the pandemic, first from store closures and shutdowns, then from the pent-up demand for apparel, and more recently, from the economic uncertainty. Adding to that, Ross is finding that consumers’ spending trends in terms of mix and categories have been more difficult to predict than usual, resulting in some mismatches between its merchandise assortment and what shoppers want. This doesn’t appear to be a Ross-specific issue, as other apparel retailers have reported similar problems. We attribute this to the unusual post-pandemic environment, and while we don’t have a crystal ball as to when this will normalize, we believe it will.”