In this article, we discuss the 5 best clothing stocks to buy now. If you want to read our detailed analysis of the clothing industry, go directly and see the 10 Best Clothing Stocks To Buy Now.
5. Macy’s, Inc. (NYSE:M)
Number of Hedge Fund Holders: 35
Macy’s, Inc. (NYSE:M), an American retail of apparel, accessories, and other consumer goods, ranks fifth on our list of the best clothing stocks to buy now.
Macy’s, Inc. (NYSE:M) presented a positive hedge fund sentiment in Q2, as the number of hedge funds having stakes in the company grew to 35 from 31 in the previous quarter. The total worth of these stakes is over $1.02 billion, up from $790.3 million in Q1.
On October 22, Macy’s, Inc. (NYSE:M) declared a quarterly dividend of $0.15 per share, yielding 2.28%. Recently, Cowen lifted its price target on Macy’s, Inc. (NYSE:M) to $37, with an Outperform rating on the shares, highlighting the company’s e-commerce business, which, according to the firm’s analyst, could carry an $11.5 billion enterprise value.
4. Tapestry, Inc. (NYSE:TPR)
Number of Hedge Fund Holders: 41
Tapestry, Inc. (NYSE:TPR) is an American multinational luxury holding company that owns some of the most famous brands, such as Coach, Kate Spade, and Stuart Weitzman. The company stands fourth on our list of the best clothing stocks to buy now.
On August 19, Tapestry, Inc. (NYSE:TPR) announced a quarterly dividend of $0.25 per share, yielding 2.41%. This August, Baird raised its price target on Tapestry, Inc. (NYSE:TPR) to $60, with an Outperform rating on the shares.
Of the 873 hedge funds tracked by Insider Monkey, 41 hedge funds reported having stakes in Tapestry, Inc. (NYSE:TPR) in Q2, compared with 50 in the previous quarter. The total worth of these stakes is over $1.12 billion.
3. The Gap, Inc. (NYSE:GPS)
Number of Hedge Fund Holders: 43
In the initial months of the pandemic, The Gap, Inc. (NYSE:GPS) reported a loss of $1 billion due to the lockdown. However, in Q2 2021, the company reported a 28.4% year-over-year growth in revenue at $4.21 billion.
As of Q2, Arrowstreet Capital is the largest shareholder of The Gap, Inc. (NYSE:GPS), owning over 7.2 million shares. In addition, 43 hedge funds tracked by Insider Monkey reported having stakes in the company in Q2, up from 42 in the previous quarter. The total value of these stakes is $910.6 million.
This August, Deutsche Bank raised its price target on The Gap, Inc. (NYSE:GPS) to $45, with a Buy rating on the shares. The stock is up 17.17% in 2021.
2. Capri Holdings Limited (NYSE:CPRI)
Number of Hedge Fund Holders: 44
Oliver Chen of Cowen appreciated the operational transformation of Capri Holdings Limited (NYSE:CPRI) during the pandemic while noting the company’s execution. This August, the firm lifted its price target on the company to $75, with a Market Perform rating on the shares.
As of Q2, 44 hedge funds tracked in the Insider Monkey database reported having stakes in Capri Holdings Limited (NYSE:CPRI), down from 47 in the previous quarter. The total value of these stakes is $891.1 million.
1. Nike, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 67
Nike, Inc. (NYSE:NKE) tops our list of the best clothing stocks to buy now. The stock plunged in the initial months of the pandemic, reaching $67.45 per share in March 2020. However, it gained 25.7% in the past year and 23% in 2021.
Fundsmith LLP is the largest shareholder of Nike, Inc. (NYSE:NKE) in Q2, with shares worth $1.3 billion. Overall, 67 hedge funds tracked by Insider Monkey have stakes in the company in Q2, compared with 78 in the previous quarter. The total value of these stakes is $6.42 billion, up from $5.17 billion in Q1.
In October, Goldman Sachs initiated its coverage on Nike, Inc. (NYSE:NKE) with a Buy rating and a $172 price target. The firm’s analyst highlighted that the company can benefit from its direct-to-consumer initiative, which would drive higher gross margins.
You can also take a look at 15 Best Retail Stocks for 2021 and 15 Best Consumer Discretionary Stocks to Buy Now
