5 Best Consumer Discretionary Stocks to Buy According to Hedge Funds

In this article, we will take a look at the 5 best consumer discretionary stocks to buy according to hedge funds. To see more such companies, go directly to 15 Best Consumer Discretionary Stocks to Buy According to Hedge Funds.

5. The TJX Companies, Inc. (NYSE:TJX)

Number of Hedge Fund Holders: 73

Off-price department store company The TJX Companies, Inc. (NYSE:TJX)  ranks 5th in our list of the best consumer discretionary stocks to buy according to hedge funds.

Insider Monkey’s database of 943 hedge funds shows that 73 funds have stakes in The TJX Companies, Inc. (NYSE:TJX) as of the end of the first quarter. The biggest hedge fund stakeholder of The TJX Companies, Inc. (NYSE:TJX) was Panayotis Takis Sparaggis’s Alkeon Capital Management which owns a $413 million stake in the company.

Artisan Global Equity Fund made the following comment about The TJX Companies, Inc. (NYSE:TJX) in its Q4 2022 investor letter:

“Also, shares of The TJX Companies, Inc. (NYSE:TJX), an off-price retailer of apparel and home goods across North America, Europe and Australia, rose on strong Black Friday sales and market share gains as shoppers searched for deals in physical stores. The company showed that it is maintaining margins and beating earnings estimates on strong sales and by selectively raising prices. TJX’s business model is to sell brand name and designer merchandise in limited quantities at every day discounted prices in stores with flexible, low-cost layouts. Its strategy is to tap into shoppers’ psychological need to “treasure hunt,” as the company describes it, to find unique, branded items at deep discounts. TJX buyers opportunistically purchase merchandise from vendors at deep discounts to keep the cost of goods low for stores. As the largest off-price retailer, the company has used its channel power to its advantage in recent months to gain steep discounts on merchandise as other retailers struggle to clear their inventory. We appreciate the company’s inventory management and pricing  prowess. This holding is an example of our broad universe of companies that we consider for the portfolio and one that we believe is well-positioned for the current market environment.”