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U.S. Consumer Discretionary Sector Analysis

UpdatedSep 12, 2025
DataAggregated Company Financials
Companies778
  • 7D1.5%
  • 3M13.4%
  • 1Y27.8%
  • YTD9.1%

The Consumer Discretionary industry is up 1.5% in the last week, with Tesla up 8.9%. This means that the industry has gained 28% over the past year. Earnings are forecast to grow by 18% annually.

Sector Valuation and Performance

Has the U.S. Consumer Discretionary Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 12 Sep 2025US$7.5tUS$3.5tUS$222.0b20.1x33.8x2.2x
Sun, 10 Aug 2025US$7.0tUS$3.4tUS$217.8b18.8x32.1x2x
Tue, 08 Jul 2025US$7.0tUS$3.4tUS$216.1b18.7x32.2x2x
Thu, 05 Jun 2025US$6.7tUS$3.4tUS$217.5b17.4x31x2x
Sat, 03 May 2025US$6.1tUS$3.4tUS$213.9b16.7x28.7x1.8x
Mon, 31 Mar 2025US$6.2tUS$3.4tUS$211.9b16.4x29.2x1.8x
Wed, 26 Feb 2025US$6.9tUS$3.4tUS$210.9b18.7x32.9x2x
Fri, 24 Jan 2025US$7.3tUS$3.3tUS$202.1b18.9x36.1x2.2x
Sun, 22 Dec 2024US$7.2tUS$3.3tUS$200.7b18.2x35.7x2.1x
Tue, 19 Nov 2024US$6.6tUS$3.4tUS$197.7b18.1x33.6x2x
Thu, 17 Oct 2024US$5.8tUS$3.2tUS$178.4b18.3x32.6x1.8x
Sat, 14 Sep 2024US$5.6tUS$3.2tUS$177.5b17.3x31.6x1.8x
Mon, 12 Aug 2024US$5.2tUS$3.2tUS$172.9b17x30.2x1.7x
Wed, 10 Jul 2024US$5.7tUS$3.1tUS$167.3b17x34.3x1.8x
Fri, 07 Jun 2024US$5.4tUS$3.1tUS$168.0b18x32.4x1.7x
Sun, 05 May 2024US$5.4tUS$3.1tUS$166.4b17.4x32.7x1.8x
Tue, 02 Apr 2024US$5.4tUS$3.1tUS$160.4b18.4x33.8x1.8x
Thu, 29 Feb 2024US$5.4tUS$3.1tUS$154.3b17.7x34.9x1.8x
Sat, 27 Jan 2024US$5.0tUS$3.1tUS$146.5b17.4x34.4x1.6x
Mon, 25 Dec 2023US$5.3tUS$3.1tUS$141.3b17.7x37.6x1.7x
Wed, 22 Nov 2023US$4.9tUS$3.0tUS$138.3b15.6x35.7x1.6x
Fri, 20 Oct 2023US$4.5tUS$3.0tUS$113.0b14.7x40.2x1.5x
Sun, 17 Sep 2023US$5.0tUS$3.0tUS$112.5b15.1x44.6x1.7x
Tue, 15 Aug 2023US$5.0tUS$3.0tUS$112.6b16.1x44.4x1.7x
Thu, 13 Jul 2023US$5.0tUS$2.9tUS$99.9b15.6x50.5x1.7x
Sat, 10 Jun 2023US$4.7tUS$2.9tUS$99.3b14.3x47.1x1.6x
Mon, 08 May 2023US$4.2tUS$2.9tUS$92.4b14.2x45.8x1.4x
Wed, 05 Apr 2023US$4.4tUS$2.9tUS$81.6b13.4x54.4x1.5x
Fri, 03 Mar 2023US$4.5tUS$3.1tUS$86.9b13.8x51.8x1.5x
Sun, 29 Jan 2023US$4.8tUS$3.0tUS$109.4b13.2x43.9x1.6x
Tue, 27 Dec 2022US$4.0tUS$3.0tUS$108.9b11.9x36.8x1.3x
Thu, 24 Nov 2022US$4.4tUS$3.0tUS$108.1b11.5x40.2x1.4x
Sat, 22 Oct 2022US$4.4tUS$3.0tUS$112.5b10.7x39.3x1.5x
Mon, 19 Sep 2022US$5.0tUS$3.0tUS$111.0b11.1x45x1.7x
Price to Earnings Ratio

45x


Total Market Cap: US$5.0tTotal Earnings: US$111.0bTotal Revenue: US$3.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Consumer Discretionary Sector Price to Earnings3Y Average 37.9x202320242025
Current Industry PE
  • Investors are pessimistic on the American 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 33.8x which is lower than its 3-year average PE of 37.9x.
  • The 3-year average PS ratio of 1.7x is lower than the industry's current PS ratio of 2.2x.
Past Earnings Growth
  • The earnings for companies in the Consumer Discretionary industry have grown 26% per year over the last three years.
  • Revenues for these companies have grown 5.5% 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 U.S. Consumer Discretionary sector?

US Market1.80%
Consumer Discretionary1.52%
Auto7.87%
Consumer Services4.05%
Retail Distributors3.87%
Auto Components2.08%
Consumer Durables0.98%
Leisure0.89%
Specialty Stores0.74%
General Merchandise and Department Stores0.14%
Online Retail and Ecommerce0%0
Hospitality-0.038%
Luxury-3.27%
Industry PE
  • Investors are most optimistic about the Auto Components industry which is trading above its 3-year average PE ratio of 128x.
    • Analysts are expecting annual earnings growth of 31.8%, which is higher than its past year's earnings growth of 2.8% per year.
Forecasted Growth
  • Analysts are most optimistic on the Leisure industry, expecting annual earnings growth of 38% over the next 5 years.
  • This is better than its past earnings decline of 22% per year.
  • In contrast, the Consumer Durables industry is expected to see its earnings grow by 4.2% per year over the next few years.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
TSLA TeslaUS$368.818.9%
+US$133.7b		60.5%PE208.5x
BABA Alibaba Group HoldingUS$155.4418.7%
+US$54.7b		81.8%PE16.7x
HD Home DepotUS$423.422.8%
+US$11.7b		13.1%PE28.8x
CPNG CoupangUS$32.4512.9%
+US$6.8b		36.9%PE162.1x
JD JD.comUS$34.4011.2%
+US$4.9b		29.1%PE9x

Latest News

RCL
US$350.23
Royal Caribbean Cruises
7D
-2.7%
1Y
111.5%
LULU
US$165.78
lululemon athletica
7D
-19.6%
1Y
-36.3%
DASH
US$260.19
DoorDash
7D
4.6%
1Y
99.9%

Expanding International Markets And Automation Will Drive Future Success

DoorDash’s analyst price target increased modestly to $294.19 as strong Q2 results, ongoing order growth, new verticals, and accretive acquisitions (including Deliveroo) bolstered long-term growth optimism, though rising competition remains a key risk. Analyst Commentary Bullish analysts raised price targets driven by strong Q2 results, including beats on Gross Order Value, revenue, and adjusted EBITDA, combined with continued order frequency growth and positive demand trends.
CMG
US$38.96
Chipotle Mexican Grill
7D
-5.9%
1Y
-30.9%

Restaurant Expansion In Mexico And Europe Will Boost Performance

Analysts modestly lowered Chipotle's consensus price target to $57.75, citing disappointing Q2 results, macro headwinds, and heightened competitive pressures, though some remain constructive on resilient demand, recent menu innovation, and the company's long-term growth outlook. Analyst Commentary Bullish analysts cite improved risk/reward following a 31% YTD selloff, with expectations that market pessimism regarding same-store-sales is overly priced in.
LOW
US$272.40
Lowe's Companies
7D
3.0%
1Y
8.1%
TSLA
US$368.81
Tesla
7D
8.9%
1Y
60.5%
SE
US$196.50
Sea
7D
3.6%
1Y
148.4%

Sea Limited's (NYSE:SE) 25% Jump Shows Its Popularity With Investors

Sep 05
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JD
US$34.40
JD.com
7D
11.2%
1Y
29.1%

Chinese Digital Retail And Logistics Will Open Markets Despite Risks

Analysts have tempered their long-term outlook on JD.com due to ongoing margin pressures and uncertainty over profitability from new business investments, leading to a consensus price target that remains at $44.48 despite strong near-term revenue growth. Analyst Commentary Bullish analysts remain positive on JD.com's near-term growth outlook, citing strong Q2 topline performance and expectations for above-consensus revenue growth.
MCD
US$308.43
McDonald's
7D
-2.7%
1Y
5.5%

International Expansion And Digital Commerce Will Shape Future Success

Analysts remain divided on the benefits and risks of McDonald's value initiatives amid a challenging competitive landscape and cautious U.S. consumer outlook, with the consensus price target unchanged at $334.85. Analyst Commentary Bullish analysts highlight McDonald's scale, marketing power, and digital leadership as key advantages in navigating consumer uncertainty and driving share gains, especially through new products and targeted promotions.
BKNG
US$5,498.00
Booking Holdings
7D
-1.6%
1Y
42.0%

AI Integration And Global Partnerships Will Transform Travel Experiences

Despite persistent bullish sentiment driven by resilient leisure travel demand, accelerating reservation data, and valuation discounts versus peers, recent analyst caution over softer Q3 guidance has resulted in no net change to Booking Holdings' consensus analyst price target, which remains at $6,100. Analyst Commentary Bullish analysts continue to raise price targets based on reduced macro risks, a resilient leisure travel backdrop, and incrementally positive trends in Booking’s Asia exposure.
MELI
US$2,338.20
MercadoLibre
7D
-3.3%
1Y
9.3%

Digital Retail And MercadoPago Adoption Will Fuel Future Markets

Analysts have raised MercadoLibre’s price target to $2,876, reflecting confidence in its aggressive push into Brazil’s low-ASP e-commerce segment despite rising competition, driven by strong Q2 execution and potential for share gains among value-focused consumers. Analyst Commentary MercadoLibre is aggressively targeting the lower average selling price (ASP) segment in Brazil, including a significant lowering of the free shipping threshold and large-scale promotional campaigns, to directly compete with Shopee, Temu, and TikTok Shop.
HD
US$423.42
Home Depot
7D
2.8%
1Y
13.1%

Analysts Are Updating Their The Home Depot, Inc. (NYSE:HD) Estimates After Its Second-Quarter Results

Aug 28
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SBUX
US$82.36
Starbucks
7D
-5.3%
1Y
-17.0%
AMZN
US$229.95
Amazon.com
7D
-2.4%
1Y
23.0%
CPNG
US$32.45
Coupang
7D
12.9%
1Y
36.9%

AI And Automation Will Expand Horizons In Korea And Taiwan

With Coupang’s future P/E and net profit margin both remaining essentially unchanged, analyst sentiment appears stable, resulting in no meaningful shift to the consensus price target, which holds at $32.99. What's in the News Coupang completed no share repurchases, with 0 shares bought back for $0 million under the most recent buyback program.
BABA
US$155.44
Alibaba Group Holding
7D
18.7%
1Y
81.8%

AI, Cloud And Quick Commerce Will Power Digital Progress

Key Takeaways Investment in AI, cloud, and quick commerce aims to drive long-term revenue and margin growth despite near-term profit pressure from elevated spending. Enhanced integration and partnerships are expanding Alibaba's enterprise footprint, boosting user engagement, and strengthening its competitive position in digital services.