In the midst of economic uncertainty and the prospect of higher interest rates, consumer spending has been overshadowed. However, experienced investors understand that the stock market often presents opportunities for significant gains after a downturn. In this article, we explore a few highly-ranked Zacks Textile-Apparel Industry stocks that could be worth buying on the dip.
Lululemon (LULU)
Lululemon, an athletic apparel titan with a loyal customer base, has become an iconic brand that can weather economic downturns. With a Zacks Rank #2 (Buy), Lululemon’s stock has already outperformed the Textile-Apparel Markets this year, with a double-digit percentage growth in its top and bottom lines. This suggests that a potential selloff could present even better buying opportunities.
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Guess (GES)
Investors looking for dividends may find Guess stock attractive. As an iconic jeans and fashion apparel designer, Guess currently holds a Zacks Rank #1 (Strong Buy) and offers an annual dividend yield that surpasses both the S&P 500 and industry averages. With a respectable year-to-date growth and trading at a low forward earnings multiple, Guess shows potential as a value stock.
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G-III Apparel Group (GIII)
G-III Apparel Group, which boasts a Zacks Rank #1 (Strong Buy), offers a wide range of apparel and accessories with licensed brands. Despite already soaring in value this year, GIII’s stock trades at a low forward earnings multiple, making it an intriguing buy the dip candidate. Furthermore, the company’s projected earnings growth indicates future potential.
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Bottom Line
Considering the stronger-than-expected outlooks for Lululemon, Guess, and G-III Apparel Group, investing in these stocks at a lower price point could prove rewarding. These companies are positioned to outperform their peers and potentially the broader market.
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Disclaimer: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
