Canadian (TSX) Consumer Discretionary Sector Analysis

Sector Valuation and Performance

Has the Canadian Consumer Discretionary Sector valuation changed over the past few years?

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 16.0x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Consumer Discretionary industry have declined 7.8% per year over the last three years, while revenues have remained mostly flat. This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

Which industries have driven the changes within the Canadian Consumer Discretionary sector?

Industry PE: Investors are most optimistic about the Luxury industry which is trading above its 3-year average PE ratio of 47.9x. This is likely because analysts are expecting annual earnings growth of 11%, which is higher than its past year's earnings decline of 24% per year. Meanwhile, investors are most pessimistic about the Specialty Stores industry, which is trading below its 3-year average of 12.4x.

Forecasted Growth: Analysts are most optimistic on the Consumer Durables industry, expecting annual earnings growth of 117% over the next 5 years. Meanwhile, the General Merchanise and Department Stores industry is expected to see its earnings growth to stay flat over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?