Italian (Borsa Italiana) Consumer Discretionary Sector Analysis

Sector Valuation and Performance

Has the Italian 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 18.0x. 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 grown 6.0% per year over the last three years, while revenues for these companies have declined 12% per year. This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.

Industry Trends

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

Industry PE: Investors are most optimistic about the Hospitality industry which is trading above its 3-year average PE ratio of 188x. This is likely because analysts are expecting annual earnings growth of 75% and investors are willing to pay a premium for that growth. Meanwhile, investors are most pessimistic about the Specialty Stores industry, which is trading below its 3-year average of 12.7x.

Forecasted Growth: Analysts are most optimistic on the Online Retail and Ecommerce industry, expecting annual earnings growth of 90% over the next 5 years. This is roughly in line with its past earnings growth rate. Meanwhile, the Specialty Stores industry is expected to see its earnings decline by 8.7% per year over the next few years.

Top Stock Gainers and Losers

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