In the last week, Consumer Discretionary has been flat. The past year has been better, since the industry has gained 7.1% in that time. As for the next few years, earnings are forecast to decline by 5.1% per annum.
Sector Valuation and Performance
Has the Kuwaiti Consumer Discretionary Sector valuation changed over the past few years?
Investors are pessimistic on the Kuwaiti Consumer Discretionary industry, indicating that they anticipate long term growth rates will be lower than they have historically.
The industry is trading at a PE ratio of 9.2x which is lower than its 3-year average PE of 16.1x.
The 3-year average PS ratio of 1.7x is higher than the industry's current PS ratio of 1.4x.
Past Earnings Growth
The earnings for companies in the Consumer Discretionary industry have grown 48% per year over the last three years.
Revenues for these companies have grown 8.4% per year.
This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Which industries have driven the changes within the Kuwaiti Consumer Discretionary sector?
Online Retail and Ecommerce
General Merchanise and Department Stores
Investors are most optimistic about the Specialty Stores industry even though it's trading below its 3-year average PE ratio of 20.8x.
It looks like they are confident that earnings will grow faster in the future than they have historically.
Investors are most pessimistic about the Consumer Services industry, which is trading below its 3-year average of 9.7x.
Despite it being negative, analysts are least pessimistic on the Consumer Services industry since they expect its earnings to decline by only 5.1% per year over the next 5 years, which isn't as bad as the other industries.
This is a reversal from its past annual earnings growth rate of 2.1% per year.
In contrast, the Consumer Services industry is expected to see its earnings decline by 5.1% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?