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U.S. Consumer Discretionary Sector Analysis

UpdatedSep 16, 2025
DataAggregated Company Financials
Companies770
  • 7D2.4%
  • 3M14.8%
  • 1Y29.8%
  • YTD10.8%

Over the last 7 days, the Consumer Discretionary industry has risen 1.2%, driven by gains from Tesla of 18%. In the last 12 months, the industry was up 28%. Looking forward, 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
Tue, 16 Sep 2025US$7.7tUS$3.5tUS$221.3b19.6x34.9x2.2x
Thu, 14 Aug 2025US$7.1tUS$3.5tUS$218.8b20.1x32.5x2.1x
Sat, 12 Jul 2025US$6.9tUS$3.4tUS$216.1b18.9x31.9x2x
Mon, 09 Jun 2025US$6.7tUS$3.4tUS$217.3b17.5x30.7x1.9x
Wed, 07 May 2025US$6.2tUS$3.4tUS$216.9b16.9x28.6x1.8x
Fri, 04 Apr 2025US$6.4tUS$3.4tUS$211.9b15.7x30x1.9x
Sun, 02 Mar 2025US$6.8tUS$3.4tUS$211.4b17.8x32.3x2x
Tue, 28 Jan 2025US$7.3tUS$3.3tUS$202.7b19x36.1x2.2x
Thu, 26 Dec 2024US$7.4tUS$3.3tUS$200.9b18x36.7x2.2x
Sat, 23 Nov 2024US$6.7tUS$3.4tUS$199.9b18.6x33.4x2x
Mon, 21 Oct 2024US$5.8tUS$3.2tUS$178.5b18.6x32.7x1.8x
Wed, 18 Sep 2024US$5.6tUS$3.2tUS$177.5b17.7x31.6x1.8x
Fri, 16 Aug 2024US$5.3tUS$3.2tUS$173.3b17.1x30.4x1.7x
Sun, 14 Jul 2024US$5.8tUS$3.1tUS$167.4b17.6x34.6x1.9x
Tue, 11 Jun 2024US$5.4tUS$3.1tUS$168.0b18x32.4x1.7x
Thu, 09 May 2024US$5.5tUS$3.1tUS$165.9b18.1x32.9x1.8x
Sat, 06 Apr 2024US$5.3tUS$3.1tUS$160.4b18x33x1.7x
Mon, 04 Mar 2024US$5.5tUS$3.1tUS$155.1b17.7x35.2x1.8x
Wed, 31 Jan 2024US$5.1tUS$3.1tUS$148.3b17.1x34.5x1.7x
Fri, 29 Dec 2023US$5.4tUS$3.1tUS$141.4b17.8x37.9x1.8x
Sun, 26 Nov 2023US$5.0tUS$3.0tUS$139.8b15.3x35.7x1.6x
Tue, 24 Oct 2023US$4.5tUS$3.0tUS$113.0b14.6x39.6x1.5x
Thu, 21 Sep 2023US$4.9tUS$3.0tUS$112.6b15x43.3x1.6x
Sat, 19 Aug 2023US$4.8tUS$3.0tUS$112.3b15.9x42.5x1.6x
Mon, 17 Jul 2023US$5.1tUS$2.9tUS$99.9b15.5x51.2x1.8x
Wed, 14 Jun 2023US$4.8tUS$2.9tUS$99.4b14.8x48.2x1.6x
Fri, 12 May 2023US$4.3tUS$2.9tUS$94.0b13.9x45.8x1.5x
Sun, 09 Apr 2023US$4.3tUS$2.9tUS$81.8b13.5x53.1x1.5x
Tue, 07 Mar 2023US$4.6tUS$3.1tUS$86.2b14.4x53x1.5x
Thu, 02 Feb 2023US$4.9tUS$3.1tUS$108.2b13.6x45.2x1.6x
Sat, 31 Dec 2022US$4.0tUS$3.0tUS$108.5b11.7x36.9x1.3x
Mon, 28 Nov 2022US$4.3tUS$3.0tUS$107.7b11.7x40.2x1.4x
Wed, 26 Oct 2022US$4.5tUS$3.0tUS$114.1b11.2x39.3x1.5x
Fri, 23 Sep 2022US$4.7tUS$3.0tUS$111.1b10.8x42.4x1.6x
Price to Earnings Ratio

42.4x


Total Market Cap: US$4.7tTotal Earnings: US$111.1bTotal 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 34.7x 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 5.4% 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 Market1.88%
Consumer Discretionary2.38%
Auto15.86%
Consumer Services0.45%
Retail Distributors0.19%
Online Retail and Ecommerce0%0
General Merchandise and Department Stores-0.087%
Specialty Stores-0.40%
Auto Components-0.53%
Luxury-0.88%
Hospitality-1.18%
Leisure-2.34%
Consumer Durables-3.92%
Industry PE
  • Investors are most optimistic about the Auto Components industry which is trading above its 3-year average PE ratio of 138x.
    • Analysts are expecting annual earnings growth of 31.6%, 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$410.0418.2%
+US$209.6b		79.9%PE231.8x
BABA Alibaba Group HoldingUS$158.0411.9%
+US$37.6b		89.0%PE16.9x
CPNG CoupangUS$33.506.3%
+US$3.6b		39.9%PE167.3x
PDD PDD HoldingsUS$127.391.9%
+US$3.4b		31.1%PE13.1x
DASH DoorDashUS$258.093.0%
+US$3.2b		97.2%PE141.2x

Latest News

CPNG
US$33.50
Coupang
7D
6.3%
1Y
39.9%
TSLA
US$410.04
Tesla
7D
18.2%
1Y
79.9%

Tesla’s Nvidia Moment – The AI & Robotics Inflection Point

Wow, that was fast. The market is catching on quicker than I expected.
RCL
US$329.79
Royal Caribbean Cruises
7D
-6.1%
1Y
94.3%
FLUT
US$278.00
Flutter Entertainment
7D
-3.5%
1Y
23.9%
AMZN
US$231.43
Amazon.com
7D
-1.9%
1Y
25.2%

Cloud Transition And AI Adoption Will Drive Long Term Expansion

Analysts modestly raised Amazon's price target—now $263.74—citing improving AWS demand visibility, growth potential from aggressive grocery expansion and logistics, and stronger Prime ecosystem engagement, while noting lingering concerns over operational complexity and recent AWS margin trends. Analyst Commentary Bullish analysts are raising targets on expectations that Amazon’s aggressive expansion and integration into the grocery sector—especially fresh/perishable delivery with minimum $25 baskets—will drive durable, faster growth, higher merchandise margins, meaningful EBIT/EPS upside, deeper Prime ecosystem engagement, and significant market share gains in a massive ($1–2T+) market.
NIO
US$6.49
NIO
7D
5.2%
1Y
20.2%
HD
US$422.71
Home Depot
7D
0.7%
1Y
10.7%

Earnings Not Telling The Story For The Home Depot, Inc. (NYSE:HD)

Sep 12
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CHWY
US$36.95
Chewy
7D
-11.2%
1Y
13.1%

Vet Care Clinics And New Ad Platform Will Drive Success

Analysts have modestly trimmed Chewy’s price target to $45.45, balancing near-term margin and earnings pressures tied to growth investments against confidence in resilient customer growth, market share gains, and the company’s long-term revenue upside. Analyst Commentary Bullish analysts point to Chewy’s ongoing investments in growth and new categories as building blocks for future market share gains, with several citing these reinvestments as potentially expediting revenue upside in 2026 and beyond.
ABNB
US$120.37
Airbnb
7D
-3.4%
1Y
2.4%

Remote Work And Global Expansion Will Unlock New Markets In Brazil And Japan

Despite continued strength in global travel demand and macroeconomic tailwinds supporting Airbnb’s core lodging business, lingering caution around non-core revenues and a muted U.S. travel rebound have led analysts to trim their consensus price target slightly from $139.83 to $138.12. Analyst Commentary Stabilizing and resilient global travel demand, with particular growth in Asia Pacific and Latin America, is supporting consensus upgrades to sales growth expectations through 2025.
BABA
US$158.04
Alibaba Group Holding
7D
11.9%
1Y
89.0%

AI, Cloud And Quick Commerce Will Power Digital Progress

Analysts have raised Alibaba’s price target to $165.48, citing accelerating cloud and AI-driven revenue growth, improved execution and synergies in quick commerce, margin expansion, and diversification into new verticals, all underpinning stronger long-term fundamentals. Analyst Commentary Bullish analysts cite accelerating cloud revenue growth, particularly with robust AI-related and external revenue contributions, solidifying Alibaba’s position as China’s leading GenAI and cloud infrastructure provider.
DHI
US$172.09
D.R. Horton
7D
-6.5%
1Y
-11.6%
DASH
US$258.09
DoorDash
7D
3.0%
1Y
97.2%

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.
LEN
US$133.77
Lennar
7D
-6.1%
1Y
-28.5%
MCD
US$302.07
McDonald's
7D
-3.4%
1Y
1.8%

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.
LI
US$26.17
Li Auto
7D
10.0%
1Y
37.4%
PDD
US$127.39
PDD Holdings
7D
1.9%
1Y
31.1%