Best Fashion Stocks to Buy Now in 2023: Top Clothing Stocks

How to Buy Fashion Stocks

So, you’ve decided to diversify your portfolio with apparel stocks. What are the practical steps you need to take?

There are a few different ways to purchase clothing stocks: through online brokers or direct stock purchases from companies. Going through an online brokerage makes the process a bit more intuitive – which is particularly helpful if you’re just starting out. 

Here's a step-by-step guide to purchasing stocks with a brokerage account:

1. Investigate Prospect Companies

Stock trading and investing is a volatile business; everyone has a different opinion about which stock is going to perform best, and it’s tempting to go all-in on a high probability. But before you decide to buy stocks in the apparel industry – or any other industry, for that matter – it’s crucial to do research for yourself and understand the risks involved. 

The main details to look for include: 

• Company financials. How has the company been performing? What's the market cap? Total sales for the fiscal year?
• Future prospects. Is the company expanding or downsizing in the near future? What are Wall Street analysts saying?
• Industry trends. Make sure you’re up-to-date on any changes that could affect the stock price of your chosen apparel stocks. Are there any supply chain issues?

Performance is certainly no guarantee of future results, but it can give you an idea of how the company is doing. 

2. Open a Brokerage Account

Once you’ve done your research and chosen the apparel stocks that match your investing goals, it's time to open a brokerage account. You'll need to provide personal information like name, address, Social Security number, and proof of identity. You may also be asked to deposit funds into your account before you can begin trading. 

Hint: Use our comparison tool to seek out the best investment broker. We'll find you the right match in a matter of minutes. 

3. Decide Your Investment 

How much money do you want to invest in clothing stocks? It's a completely individual decision, of course, depending heavily on your financial situation. 

Remember the saying – "Don't put all your eggs in one basket," – which applies to stock investing too. Diversifying and spreading out your investments across different stocks is a smart move, as it reduces the risk of losing everything on a bad investment. 

When you've chosen an amount, you can deposit funds to your brokerage account using cards, e-wallets, crypto, or bank transfer. 

4. Order and Monitor

Depending on the brokerage you use, you can order stocks with a few clicks using a web or mobile app. Choose between a limit order (to be executed at a specific price) or a market order (to be executed immediately). You can also use advanced tools like stop loss and take profit orders. 

Once you’ve made your purchase, keep an eye on the stock's performance with regular updates from the brokerage firm. You may choose to buy into more clothing companies if they're performing well, or sell your stocks when it's time to cash out. 

The Best Clothing Stocks to Buy Now (2023)

Instructions out of the way, let's take a closer look at some of the top apparel stocks to buy now in 2023. 

Nike (NYSE: NKE)

Nike is a world-leading sportswear brand with strong customer loyalty and a well-established presence in the apparel industry. The company has seen consistent growth over the past few years, and its stock price has been increasing steadily since 2019. 

In Q4 of 2022, Nike reported a $12.2 billion revenue – down 1% from the previous year, but still considered a relatively good performance among apparel companies. The diluted earnings per share for the fourth quarter was $0.90. 

With an emphasis on customer relationships and digital-first e-commerce marketing, Nike is well-positioned to take advantage of the continued shift toward online shopping and e-commerce.

Under Armour (XNYS:UA)

Attempting to share the spotlight with Nike is Under Armour, a sportswear and apparel company that has been around since 1996. Under Armour had an interesting year in 2022; the stock price dipped suddenly and drastically in May, staying relatively low right through October. 

Even so, the company has an impressive 16.59% Year-To-Date increase rate as of this writing – and analysts give optimistic outlooks.

Activewear is a competitive spoke of the fashion industry, and Under Armour is up against big-name brands. However, the average sentiment from 20 analysts is optimistic; they predict a median stock price increase of 5.3%. 

Gap (NYSE:GPS)

Gap is a stalwart in the apparel industry, with an iconic logo and decades of experience. The company has been around since 1969 and continues to be one of the most recognizable names in both brick-and-mortar and e-commerce fashion. 

The company reported Q3 2022 revenues of $4.04 billion, representing a year-over-year increase of 2%. EPS for the quarter was reported to be $0.77. 

CEO Bob Martin is taking a proactive approach to keeping Gap relevant, investing in digital initiatives to meet the ever-evolving needs of customers:

"...We have sharpened our focus on execution to optimize profitability and cash flow, are bringing more rigor to our operations, and balancing our assortments in response to what our customers are telling us," said Martin in the Q3 results release.

Ralph Lauren (XNYS:RL)

Ralph Lauren, a premium apparel company in the Textile-Apparel Industry, is a stock to consider for investment in 2023. Despite the industry currently being in the bottom 31% of all Zacks Industries, Ralph Lauren has a history of being a leader in the space. 

While Ralph Lauren stock is down -6% YTD, the stock has been up +410% over 20 years which beats the broader market and its Zacks Subindustry’s +365%. This long-term performance makes Ralph Lauren an attractive option for investors looking to invest in the fashion industry.

Ralph Lauren Corporation has outlined a three-year strategy, the “Next Great Chapter,” in which the company will be focusing on three main elements: brand elevation, core expansion, and consumer ecosystem. The organization is clearly planning for future growth.

Lululemon Athletica (NASDAQ:LULU)

Lululemon Athletica is a Canadian company that designs and sells athletic apparel. It is one of the most popular apparel stocks right now, with a competitive return of 0.22% in the past 12 months. 

The company is known for producing high-quality, stylish, and comfortable clothing that can be worn both as athleisure wear and everyday casual attire. Lululemon has a loyal customer base who are willing to pay premium prices for their products. 

Looking ahead into 2023, Lululemon Athletica looks like one of the best apparel stocks to buy now, with over 60% of analysts issuing a Strong Buy rating for the company. 

Best Apparel Stocks Conclusion

2023 is looking to be an excellent year for apparel stocks. While the industry has faced its share of challenges in recent years, there are still good investments to be made. 

Nike, Under Armour, Gap, Ralph Lauren, and Lululemon Athletica all make great potential investments for investors looking to gain exposure to some of the best apparel stocks right now. All five companies have strong fundamentals and a track record of success that makes them attractive options for long-term growth.

With our broker comparison tool and extensive resources, you'll be well-equipped to make sound decisions for your portfolio in 2023.