5 Best Clothing Stocks to Buy Now

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.”