Top 5 Retail Stocks to Buy Now

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

The number of hedge funds long The TJX Companies, Inc. (NYSE:TJX) has doubled since the middle of 2018, hitting 78 at the end of September. The pandemic did not scare hedge funds away from the apparel retailer at all, as weakness in the stock prompted more hedge funds to go long TJX as 2020 progressed.

Qualivian Investment Partners laid out some of the reasons why hedge funds love TJX in its Q2 investor letter, calling its off-price model one of the best in the retail landscape and claiming that many investors still misunderstand the sustainability of it. Some supply chain and inventory issues have affected TJX during the pandemic, but they are short-term and the company has a strong financial position to carry it through the pandemic, having $6.6 billion in cash as of the middle of 2020.