Sectors & IndustriesConsumer CyclicalApparel Retail

Best Apparel Stocks to Buy Now (2025)

Top apparel stocks in 2025 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:

Urban Outfitters (NASDAQ:URBN) is the #1 top apparel stock out of 33 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 Urban Outfitters (NASDAQ:URBN) is: Value: C, Growth: B, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Urban Outfitters (NASDAQ:URBN) has a Due Diligence Score of 48, which is 18 points higher than the apparel industry average of 30.

URBN passed 15 out of 33 due diligence checks and has strong fundamentals. Urban Outfitters has seen its stock return 105.23% over the past year, overperforming other apparel stocks by 117 percentage points.

Urban Outfitters has an average 1 year price target of $77.91, an upside of 1.21% from Urban Outfitters's current stock price of $76.98.

Urban Outfitters stock has a consensus Buy recommendation according to Wall Street analysts. Of the 11 analysts covering Urban Outfitters, 36.36% have issued a Strong Buy rating, 9.09% have issued a Buy, 54.55% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Tjx Companies (NYSE:TJX) is the #2 top apparel stock out of 33 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: A, Financials: B, and AI: B.

Tjx Companies (NYSE:TJX) has a Due Diligence Score of 46, which is 16 points higher than the apparel industry average of 30.

TJX passed 17 out of 38 due diligence checks and has strong fundamentals. Tjx Companies has seen its stock return 14.74% over the past year, overperforming other apparel stocks by 27 percentage points.

Tjx Companies has an average 1 year price target of $151.64, an upside of 11.06% from Tjx Companies's current stock price of $136.54.

Tjx Companies stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 14 analysts covering Tjx Companies, 57.14% have issued a Strong Buy rating, 35.71% have issued a Buy, 7.14% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Buckle (NYSE:BKE) is the #3 top apparel stock out of 33 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Buckle (NYSE:BKE) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: A, and AI: C.

Buckle (NYSE:BKE) has a Due Diligence Score of 32, which is 2 points higher than the apparel industry average of 30.

BKE passed 11 out of 38 due diligence checks and has average fundamentals. Buckle has seen its stock return 34.82% over the past year, overperforming other apparel stocks by 47 percentage points.

Buckle has an average 1 year price target of $51.00, a downside of -9.22% from Buckle's current stock price of $56.18.

Buckle stock has a consensus Hold recommendation according to Wall Street analysts. Of the 1 analyst covering Buckle, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% 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:

Carters (NYSE:CRI) has an annual dividend yield of 10.08%, which is 7 percentage points higher than the apparel industry average of 2.94%. Carters's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Carters's dividend has shown consistent growth over the last 10 years.

Carters's dividend payout ratio of 70.3% indicates that its high dividend yield is sustainable for the long-term.

American Eagle Outfitters (NYSE:AEO) has an annual dividend yield of 2.96%, which is the same as the apparel industry average of 2.94%. 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 50% indicates that its dividend yield is sustainable for the long-term.

Gap (NYSE:GAP) has an annual dividend yield of 2.24%, which is -1 percentage points lower than the apparel industry average of 2.94%. Gap's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Gap's dividend has not shown consistent growth over the last 10 years.

Gap's dividend payout ratio of 26.4% indicates that its dividend yield is sustainable for the long-term.

Apparel stocks were up 2.77% in the last day, and up 3.24% over the last week. Lululemon Athletica was the among the top gainers in the apparel retail industry, gaining 4.75% yesterday.

Shares of apparel stocks are trading higher amid overall market strength after Fed Chair Powell said restrictive policy and shifting risks may warrant adjusting the Fed's stance.

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 39 points higher than the apparel industry average of 32. It passed 5 out of 7 valuation due diligence checks.

Jjill's stock has dropped -48.95% in the past year. It has underperformed other stocks in the apparel industry by -37 percentage points.

Caleres (NYSE:CAL) 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.

Caleres has a valuation score of 71, which is 39 points higher than the apparel industry average of 32. It passed 5 out of 7 valuation due diligence checks.

Caleres's stock has dropped -63.25% in the past year. It has underperformed other stocks in the apparel industry by -51 percentage points.

Gap (NYSE:GAP) is the third 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.

Gap has a valuation score of 43, which is 11 points higher than the apparel industry average of 32. It passed 3 out of 7 valuation due diligence checks.

Gap's stock has dropped -12.36% in the past year. It has performed in line with other stocks in the apparel industry.

44.44% of apparel stocks rated by analysts are a hold right now. On average, analysts expect apparel stocks to rise by 14.24% over the next year.

0% of apparel stocks have a Zen Rating of A (Strong Buy), 7.14% of apparel stocks are rated B (Buy), 78.57% are rated C (Hold), 3.57% are rated D (Sell), and 10.71% are rated F (Strong Sell).