2 Buy-Rated Apparel Stocks to Dress Up Your Portfolio By StockNews

A significant increase in discretionary spending and the resumption of outdoor activities are helping the apparel industry rebound this year. With in-store shopping regaining its appeal, and increasing spending on e-commerce platforms, we believe leading apparel stocks Ralph Lauren (RL) and Guess’ (GES) could be solid additions to one’s portfolio now. So, let’s discuss.The apparel industry has been rebounding this year. As people resume outdoor activities and discretionary spending rises, both e-commerce and the brick-and-mortar outlets of apparel companies are seeing sales growth.

The global clothing and clothing accessories stores market is expected to hit $1.2 trillion in 2021, registering a 7.8% CAGR. With more than 5.48 billion COVID-19 vaccine doses administered across 182 countries so far, consumers are expected to be increasingly inclined to shop at brick-and-mortar retail stores. In addition, shifting preferences regarding branded and customized products, and the continuous launch of new fashions supported by aggressive branding, should continue to fuel the industry’s growth.

Given a strong digital presence and established brick-and-mortar chains, apparel companies Ralph Lauren Corporation (NYSE:) and Guess’, Inc. (NYSE:) should benefit from industry tailwinds. Shares of these two companies are rated B (Buy) in our proprietary POWR Ratings system.

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