Sectors & IndustriesConsumer CyclicalApparel Retail

Best Apparel Stocks to Buy Now (2026)

Top apparel stocks in 2026 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best apparel stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best clothing stocks to buy right now are:

American Eagle Outfitters (NYSE:AEO) is the #1 top apparel stock out of 32 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for American Eagle Outfitters (NYSE:AEO) is: Value: B, Growth: B, Momentum: C, Sentiment: C, Safety: B, Financials: C, and AI: B.

American Eagle Outfitters (NYSE:AEO) has a Due Diligence Score of 42, which is 11 points higher than the apparel industry average of 31.

AEO passed 15 out of 38 due diligence checks and has strong fundamentals. American Eagle Outfitters has seen its stock return 42.98% over the past year, overperforming other apparel stocks by 47 percentage points.

American Eagle Outfitters has an average 1 year price target of $23.00, an upside of 40.24% from American Eagle Outfitters's current stock price of $16.40.

American Eagle Outfitters stock has a consensus Hold recommendation according to Wall Street analysts. Of the 8 analysts covering American Eagle Outfitters, 12.5% have issued a Strong Buy rating, 0% have issued a Buy, 75% have issued a hold, while 12.5% have issued a Sell rating, and 0% have issued a Strong Sell.

Tjx Companies (NYSE:TJX) is the #2 top apparel stock out of 32 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Tjx Companies (NYSE:TJX) is: Value: C, Growth: C, Momentum: C, Sentiment: B, Safety: B, Financials: A, and AI: B.

Tjx Companies (NYSE:TJX) has a Due Diligence Score of 50, which is 19 points higher than the apparel industry average of 31.

TJX passed 19 out of 38 due diligence checks and has strong fundamentals. Tjx Companies has seen its stock return 17.99% over the past year, overperforming other apparel stocks by 22 percentage points.

Tjx Companies has an average 1 year price target of $175.00, an upside of 9.92% from Tjx Companies's current stock price of $159.21.

Tjx Companies stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 9 analysts covering Tjx Companies, 66.67% have issued a Strong Buy rating, 22.22% have issued a Buy, 11.11% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Ross Stores (NASDAQ:ROST) is the #3 top apparel stock out of 32 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Ross Stores (NASDAQ:ROST) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: A, and AI: B.

Ross Stores (NASDAQ:ROST) has a Due Diligence Score of 45, which is 14 points higher than the apparel industry average of 31.

ROST passed 17 out of 38 due diligence checks and has strong fundamentals. Ross Stores has seen its stock return 41.2% over the past year, overperforming other apparel stocks by 45 percentage points.

Ross Stores has an average 1 year price target of $229.39, an upside of 5.32% from Ross Stores's current stock price of $217.79.

Ross Stores stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 13 analysts covering Ross Stores, 61.54% have issued a Strong Buy rating, 23.08% have issued a Buy, 15.38% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 9 apparel stocks that have issued dividends in the past year, the 3 apparel stocks with the highest dividend yields are:

Buckle (NYSE:BKE) has an annual dividend yield of 9.15%, which is 6 percentage points higher than the apparel industry average of 3.16%. Buckle's dividend payout is not stable, having dropped more than 10% eight times in the last 10 years. Buckle's dividend has shown consistent growth over the last 10 years.

Buckle's dividend payout ratio of 105.5% indicates that its high dividend yield might not be sustainable for the long-term.

Shoe Carnival (NASDAQ:SCVL) has an annual dividend yield of 3.93%, which is 1 percentage points higher than the apparel industry average of 3.16%. Shoe Carnival's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Shoe Carnival's dividend has shown consistent growth over the last 10 years.

Shoe Carnival's dividend payout ratio of 31.4% indicates that its dividend yield is sustainable for the long-term.

American Eagle Outfitters (NYSE:AEO) has an annual dividend yield of 3.05%, which is the same as the apparel industry average of 3.16%. American Eagle Outfitters's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. American Eagle Outfitters's dividend has not shown consistent growth over the last 10 years.

American Eagle Outfitters's dividend payout ratio of 45.1% indicates that its dividend yield is sustainable for the long-term.

Apparel stocks were up 4.23% in the last day, and up 4.06% over the last week. Burlington Stores was the among the top gainers in the apparel retail industry, gaining 8.42% yesterday.

Shares of companies in the broader consumer discretionary sector are trading higher amid a retreat in energy prices and bond yields, which may bolster confidence in tamer inflation and robust spending power going forward.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued apparel stocks right now are:

Jjill (NYSE:JILL) is the most undervalued apparel stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Jjill has a valuation score of 71, which is 43 points higher than the apparel industry average of 28. It passed 5 out of 7 valuation due diligence checks.

Jjill's stock has dropped -28.66% in the past year. It has underperformed other stocks in the apparel industry by -25 percentage points.

Abercrombie & Fitch Co (NYSE:ANF) is the second most undervalued apparel stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Abercrombie & Fitch Co has a valuation score of 43, which is 15 points higher than the apparel industry average of 28. It passed 3 out of 7 valuation due diligence checks.

Abercrombie & Fitch Co's stock has dropped -2.49% in the past year. It has overperformed other stocks in the apparel industry by 1 percentage points.

Carters (NYSE:CRI) is the third most undervalued apparel stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Carters has a valuation score of 57, which is 29 points higher than the apparel industry average of 28. It passed 4 out of 7 valuation due diligence checks.

Carters's stock has gained 0.92% in the past year. It has overperformed other stocks in the apparel industry by 5 percentage points.

42.86% of apparel stocks rated by analysts are a strong buy right now. On average, analysts expect apparel stocks to rise by 26.64% over the next year.

3.85% of apparel stocks have a Zen Rating of A (Strong Buy), 19.23% of apparel stocks are rated B (Buy), 61.54% are rated C (Hold), 7.69% are rated D (Sell), and 7.69% are rated F (Strong Sell).