Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Consumer Discretionary Sector Analysis

UpdatedFeb 24, 2026
DataAggregated Company Financials
Companies799
  • 7D-1.0%
  • 3M-4.3%
  • 1Y3.5%
  • YTD-5.8%

The Consumer Discretionary industry has been flat over the last week, but Tesla has lost 4.2%. The past year has been better, since the industry has gained 3.5% in that time. Earnings are forecast to grow by 20% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 24 Feb 2026US$7.5tUS$3.6tUS$207.4b20.2x36.1x2.1x
Thu, 22 Jan 2026US$7.6tUS$3.6tUS$221.4b19.6x34.4x2.1x
Sat, 20 Dec 2025US$7.8tUS$3.6tUS$220.8b19.6x35.2x2.2x
Mon, 17 Nov 2025US$7.5tUS$3.5tUS$221.4b18x33.8x2.1x
Wed, 15 Oct 2025US$7.6tUS$3.5tUS$220.7b18.2x34.2x2.2x
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
Price to Earnings Ratio

51.8x


Total Market Cap: US$4.5tTotal Earnings: US$86.9bTotal Revenue: US$3.1tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Consumer Discretionary Sector Price to Earnings3Y Average 36.5x202420252026
Current Industry PE
  • Investors are relatively neutral on the American Consumer Discretionary industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 36.5x.
  • The 3-year average PS ratio of 1.8x is lower than the industry's current PS ratio of 2.1x.
Past Earnings Growth
  • The earnings for companies in the Consumer Discretionary industry have grown 34% 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 Market-0.35%
Consumer Discretionary-0.95%
General Merchandise and Department Stores1.49%
Luxury0.32%
Online Retail and Ecommerce0%0
Hospitality-0.77%
Consumer Services-0.84%
Leisure-1.46%
Specialty Stores-1.50%
Consumer Durables-1.77%
Auto-4.12%
Auto Components-5.60%
Retail Distributors-14.73%
Industry PE
  • Investors are most optimistic about the Luxury industry which is trading above its 3-year average PE ratio of 28.5x.
    • Analysts are expecting annual earnings growth of 19.2%, which is higher than its past year's earnings decline of 13.9% per year.
Forecasted Growth
  • Analysts are most optimistic on the Leisure industry, expecting annual earnings growth of 35% over the next 5 years.
  • This is better than its past earnings decline of 37% per year.
  • In contrast, the Consumer Durables industry is expected to see its earnings grow by 7.1% 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
AMZN Amazon.comUS$205.272.0%
+US$44.2b		-3.5%PE28.4x
PDD PDD HoldingsUS$105.765.5%
+US$7.8b		-11.7%PE10.1x
GRMN GarminUS$247.1015.1%
+US$6.3b		10.9%PE28.6x
MCD McDonald'sUS$334.562.1%
+US$5.0b		8.8%PE27.8x
TJX TJX CompaniesUS$157.692.1%
+US$3.6b		29.8%PE34.2x

Latest News

AMZN
US$205.27
Amazon.com
7D
2.0%
1Y
-3.5%
MCD
US$334.56
McDonald's
7D
2.1%
1Y
8.8%
GRMN
US$247.10
Garmin
7D
15.1%
1Y
10.9%
TSLA
US$399.83
Tesla
7D
-4.2%
1Y
21.0%

The Transition From Automaker To AI Behemoth Is Underway, But Priced In

Summary ​Tesla is actively transitioning its core business from automotive sales to real-world AI, including autonomous driving and humanoid robots. ​Robotaxi testing is progressing well, with plans to remove safety monitors and expand to seven new US cities in early 2026.
TJX
US$157.69
TJX Companies
7D
2.1%
1Y
29.8%

TJX: Off Price Exposure To Higher Income Shoppers Will Drive Future Upside

Analysts have lifted their fair value estimate for TJX Companies to $193 from $181, citing higher Street price targets and renewed optimism around off-price retail, as firms highlight resilient discretionary spending, solid top-line trends tied to easier weather comparisons and tax refunds, and exposure to higher income consumers. Analyst Commentary Bullish analysts are pointing to a more constructive view on TJX Companies, with higher fair value estimates and price targets reflecting confidence in the off price model and the company’s ability to execute in a mixed retail backdrop.
BKNG
US$3,870.83
Booking Holdings
7D
-6.5%
1Y
-23.3%

BKNG: AI Execution And Solid Travel Demand Will Support Future Cash Generation

Narrative Update The updated analyst price target for Booking Holdings reflects a modest recalibration lower in fair value to about $5,874, as analysts weigh solid Q4 execution and continued investment, including in AI initiatives, against slightly lower margin assumptions and a reduced future P/E multiple. Analyst Commentary Recent research views on Booking Holdings cluster around strong Q4 execution and continued investment, with price targets shifting both higher and lower as analysts reassess margins, AI spend, and sector multiples.
RCL
US$302.64
Royal Caribbean Cruises
7D
-5.3%
1Y
27.3%

RCL: Elevated Expectations And Caribbean Yield Pressures Will Restrain Share Upside

Analysts have lifted their aggregate price target for Royal Caribbean Cruises, reflecting a move from about $245 to roughly $286 as they factor in updated expectations around discount rates, revenue growth, profit margins, and future P/E multiples following a series of recent target changes across the Street. Analyst Commentary Street research on Royal Caribbean Cruises has been active, with several firms revisiting their price targets and near term views.
PDD
US$105.76
PDD Holdings
7D
5.5%
1Y
-11.7%

PDD: Tariff Resilience And Smaller Regulatory Fine Will Support Future Upside

Analysts reduced their price target on PDD Holdings by $28 to $170, reflecting slightly lower fair value and revenue growth assumptions, along with a modest increase in projected profit margin and future P/E, as they factor in recent regulatory developments and ongoing investment-driven margin pressure. Analyst Commentary Recent research on PDD Holdings shows a split between bullish analysts who focus on long-term growth potential and bearish analysts who are more focused on regulatory risk, valuation reset, and sustained margin pressure.
HD
US$376.99
Home Depot
7D
-3.6%
1Y
-1.4%

HD: AI Tools And Pro Trends Will Shape Post Weather Headwind Positioning

Our updated analyst price target for Home Depot moves slightly higher to $398, reflecting modest tweaks to our fair value, discount rate and margin assumptions as analysts point to steady transaction trends into Q4, despite subdued comparable sales expectations and recent weather related pressure on Pro activity. Analyst Commentary Recent Street research on Home Depot is mixed, with some bullish analysts lifting targets and others trimming them slightly as they recalibrate expectations ahead of Q4 earnings.
DASH
US$164.66
DoorDash
7D
2.7%
1Y
-15.9%
CPNG
US$18.58
Coupang
7D
9.4%
1Y
-24.6%
GPC
US$116.16
Genuine Parts
7D
-21.1%
1Y
-4.9%
MELI
US$1,864.46
MercadoLibre
7D
-6.2%
1Y
-16.1%

MELI: Execution On Share Defense And Robotics Adoption Will Shape Future Profit Margins

Our updated narrative fair value for MercadoLibre edges up to $2,352 from $2,340, reflecting analysts' slightly higher revenue growth and margin assumptions, along with modestly lower long term P/E and discount rate expectations following recent price target tweaks from $2,700 to $2,600 and from $3,000 to $2,900. Analyst Commentary Street research around MercadoLibre has shifted toward slightly more conservative expectations, even as some firms maintain constructive views on the long term story.
SE
US$111.24
Sea
7D
4.2%
1Y
-12.5%
BABA
US$152.78
Alibaba Group Holding
7D
-1.9%
1Y
18.4%

BABA: AI And Cloud Expansion Will Drive Future Earnings Power

Analysts have nudged their price target framework for Alibaba Group Holding slightly higher to about $198 per share, reflecting updated assumptions that include modestly adjusted revenue growth, profit margin expectations, discount rate and future P/E, informed by mixed but generally constructive recent analyst commentary on the stock. Analyst Commentary Recent research on Alibaba reflects a mix of optimism and caution, with analysts reassessing both growth drivers and execution risks across the cloud and core retail businesses.
LOW
US$274.36
Lowe's Companies
7D
-4.5%
1Y
15.7%

LOW: Lock-In Housing And AI Tools Will Support Gradual Home Improvement Recovery

Narrative Update The analyst price target for Lowe's Companies has been raised by about US$5 to reflect slightly higher modeled fair value, modest tweaks to revenue growth, profit margins and future P/E assumptions, as analysts point to valuation, pent up demand in home improvement and a healthier mix across do it yourself and pro customers as key supports for the update. Analyst Commentary Recent research on Lowe's highlights a mix of optimism around long term home improvement demand and caution around near term earnings visibility, with several firms adjusting price targets and ratings after the latest results and outlook updates.