New Zealand (NZX) Consumer Discretionary Sector Analysis

Sector Valuation and Performance

Has the New Zealand 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 13.8x. 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 13% per year over the last three years, and revenues for these companies have grown 4.6% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the New Zealand Consumer Discretionary sector?

Industry PE: Investors are most optimistic about the Hospitality industry even though it's trading below its 3-year average PE ratio of 25.2x. However analysts are expecting annual earnings growth of 12%, which is lower than the prior year's growth of 14% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Consumer Services industry, which is trading below its 3-year average of 15.5x.

Forecasted Growth: Analysts are most optimistic on the Online Retail and Ecommerce industry, expecting annual earnings growth of 37% over the next 5 years. This is better than its past earnings decline of 66% per year. Meanwhile, the General Merchanise and Department Stores industry is expected to see its earnings grow by 4.8% per year over the next few years.

Top Stock Gainers and Losers

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