Evie Mason Blog | Best Clothing Stocks To Buy Now | Talkmarkets - Page 2

Best Clothing Stocks To Buy Now

Date: Monday, April 15, 2019 6:28 AM EDT

Changing trends in market share of the apparel industry 

Over the past, resellers have grown in business due to the high prices of legacy retailers. Resellers like eBay offer discounts and customers incentives such as cash on delivery which makes the shopping more convenient for consumers. Therefore, the resale sector will see a growth of 11% of the total market share until 2027 from a mere 6% back in 2017. Similarly, other web-based retail distributors such as Amazon and Stitch Fix will see a growth of 2-4% whereas, mid-range brands like Gap, H&M, etc, will fall to 14% in the coming years. 

Before buying clothing stocks, it is essential to know the changing trends in the clothing industry as it gives you a good idea of where a particular business falls and how the customers will react to it in the future. A business is nothing without its consumers; if people stop buying clothes there’s no way brands or retailers can make a profit. Therefore, studying the changes in consumer behaviors and future estimation of market trends can help you make a smart investment decision.

Are clothing stocks a good investment?

Clothing stocks are a great investment in today’s world because of the increased growth rates of Profits in the clothing industry. When you are shopping for a new shirt or trouser, you do know that a portion of the cost reflects the profit of the retailers. That is because manufacturers and sellers promise to deliver a good quality product that is worth that value. Apply the same phenomena while buying the stocks of a clothing company. The higher the value of goods in exchange for superior craftsmanship and quality, the higher the profit. As Managing Director of Clothingric says “The stock market is packed with folks who know the value of everything, but the worth of nothing.”

Therefore, luxury brands cost more than regular retailers. Similarly, stocks of high-end brands and labels have more worth and value than the average retailers. As, David Schick, the Head Consumer and Retail Research Analyst at an investment banking and brokerage firm called Stifel said, “Luxury goods companies have a special edge when it comes to fending off the competitive threat from e-commerce.”

In short, many analysts believe that clothing stocks will remain robust in the coming years. Hence, it is high time to invest in a clothing stock. Based on previous estimations and records, the following are the top 3 clothing stocks for investment this year.

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Stocks I follow

AAMBOX Advisors Disciplined Trust
ADEP Adept Technology Inc.
BABZ PIMCO ETF Trust
FDBBX Federated Bond Fund Class B

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