5 Best Fashion Stocks To Buy Now

Below we present the list of 5 Best Fashion Stocks To Buy Now. For our methodology and a more comprehensive list please see the 11 Best Fashion Stocks To Buy Now.

5. Abercrombie & Fitch Co. (NYSE:ANF)

Number of Hedge Fund Shareholders: 26

Abercrombie & Fitch Co. (NYSE:ANF) shares have slumped by 37% over the last year, and though there’s been a slight decline in smart money ownership of ANF during that time, funds are largely sticking with the stock though this lean period. David Paradice’s Paradice Investment Management has been a shareholder of ANF for more than a year, while Steve Cohen’s Point72 Asset Management sold out of its stake during Q4 of 2021 but added it back to its portfolio in Q2 of this year.

Abercrombie & Fitch Co. (NYSE:ANF) shares have posted 27% gains since November 21 following the release of the company’s Q3 results. While year-over-year comps were understandably not great, the company did beat expectations by pulling in $880 million in revenue and earning $0.01 per share on an adjusted basis. Analysts on the other hand were expecting the company to lose money during the quarter.

Abercrombie & Fitch Co. (NYSE:ANF)’s namesake brand continued to perform this well, posting 10% year-over-year sales growth, following 13% and 5% gains in the first two quarters of the year respectively. The company’s Hollister brand is struggling however, incurring double digit sales declines in the each of the last two quarters. Abercrombie is trading at just 11.7x forward earnings, which looks cheap, and could explain why hedge funds have been hanging onto the stock.