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U.S. Consumer Discretionary Sector Analysis

UpdatedFeb 07, 2026
DataAggregated Company Financials
Companies798
  • 7D-4.2%
  • 3M-4.5%
  • 1Y2.3%
  • YTD-2.9%

Over the last 7 days, the Consumer Discretionary industry has dropped 4.2%, driven by a pullback from Amazon.com of 12%. Over the last year, the industry has been flat overall. 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
Sun, 08 Feb 2026US$7.4tUS$3.6tUS$218.2b20.2x34.1x2.1x
Tue, 06 Jan 2026US$7.8tUS$3.6tUS$221.6b19.3x35.1x2.2x
Thu, 04 Dec 2025US$7.7tUS$3.6tUS$222.2b18.6x34.6x2.2x
Sat, 01 Nov 2025US$7.6tUS$3.5tUS$227.3b18.3x33.5x2.2x
Mon, 29 Sep 2025US$7.8tUS$3.5tUS$221.3b19.5x35.1x2.2x
Wed, 27 Aug 2025US$7.3tUS$3.5tUS$217.5b19.9x33.7x2.1x
Fri, 25 Jul 2025US$7.2tUS$3.4tUS$212.9b18.6x33.6x2.1x
Sun, 22 Jun 2025US$6.7tUS$3.4tUS$217.0b17.7x30.7x1.9x
Tue, 20 May 2025US$6.9tUS$3.4tUS$220.2b17.6x31.1x2x
Thu, 17 Apr 2025US$5.8tUS$3.4tUS$212.1b15.5x27.2x1.7x
Sat, 15 Mar 2025US$6.1tUS$3.4tUS$212.6b16.7x28.7x1.8x
Mon, 10 Feb 2025US$7.1tUS$3.4tUS$203.2b18.8x35.2x2.1x
Wed, 08 Jan 2025US$7.2tUS$3.3tUS$201.8b18.5x35.5x2.1x
Fri, 06 Dec 2024US$7.1tUS$3.3tUS$199.9b19.5x35.3x2.1x
Sun, 03 Nov 2024US$5.9tUS$3.2tUS$182.0b18x32.6x1.9x
Tue, 01 Oct 2024US$6.0tUS$3.2tUS$177.9b18.4x33.7x1.9x
Thu, 29 Aug 2024US$5.4tUS$3.2tUS$176.7b17.3x30.7x1.7x
Sat, 27 Jul 2024US$5.4tUS$3.1tUS$167.7b17.3x32.3x1.7x
Mon, 24 Jun 2024US$5.5tUS$3.1tUS$166.5b17.8x33x1.8x
Wed, 22 May 2024US$5.4tUS$3.1tUS$164.7b18.3x33x1.8x
Fri, 19 Apr 2024US$5.1tUS$3.1tUS$161.1b16.8x31.7x1.7x
Sun, 17 Mar 2024US$5.3tUS$3.1tUS$156.6b17.1x33.6x1.7x
Tue, 13 Feb 2024US$5.3tUS$3.1tUS$152.3b18.2x34.7x1.7x
Thu, 11 Jan 2024US$5.2tUS$3.1tUS$141.4b17.6x36.5x1.7x
Sat, 09 Dec 2023US$5.1tUS$3.1tUS$139.2b16.5x36.6x1.7x
Mon, 06 Nov 2023US$4.8tUS$3.0tUS$127.8b15x37.2x1.6x
Wed, 04 Oct 2023US$4.7tUS$3.0tUS$113.9b14.8x41.6x1.6x
Fri, 01 Sep 2023US$5.0tUS$3.0tUS$112.1b15.8x44.7x1.7x
Sun, 30 Jul 2023US$5.0tUS$2.9tUS$103.5b15.4x48.4x1.7x
Tue, 27 Jun 2023US$4.7tUS$2.9tUS$99.9b14.2x47.2x1.6x
Thu, 25 May 2023US$4.3tUS$2.9tUS$98.8b13.6x43.3x1.5x
Sat, 22 Apr 2023US$4.3tUS$2.9tUS$80.5b13.9x53.9x1.5x
Mon, 20 Mar 2023US$2.7tUS$2.0tUS$71.4b13x37.2x1.4x
Wed, 15 Feb 2023US$4.8tUS$3.1tUS$84.9b13.6x57.1x1.6x
Price to Earnings Ratio

57.1x


Total Market Cap: US$4.8tTotal Earnings: US$84.9bTotal Revenue: US$3.1tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Consumer Discretionary Sector Price to Earnings3Y Average 36.8x202420252026
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 36.8x.
  • 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 37% per year over the last three years.
  • Revenues for these companies have grown 5.3% 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-0.12%
Consumer Discretionary-4.23%
Auto Components6.64%
Consumer Durables5.75%
Retail Distributors5.47%
Leisure4.91%
Specialty Stores3.41%
Luxury3.27%
Hospitality1.15%
Online Retail and Ecommerce0%0
Consumer Services-0.22%
Auto-3.78%
General Merchandise and Department Stores-9.94%
Industry PE
  • Investors are most optimistic about the Auto industry which is trading above its 3-year average PE ratio of 127x.
    • Analysts are expecting annual earnings growth of 33.7%, which is higher than its past year's earnings decline of 31.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Leisure industry, expecting annual earnings growth of 47% 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 8.0% 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
HD Home DepotUS$385.152.8%
+US$10.5b		-5.5%PE26.3x
MCD McDonald'sUS$327.163.9%
+US$8.7b		11.2%PE27.7x
SBUX StarbucksUS$99.458.2%
+US$8.5b		-11.4%PE82.8x
TJX TJX CompaniesUS$155.864.0%
+US$6.7b		25.0%PE33.8x
LOW Lowe's CompaniesUS$278.384.2%
+US$6.3b		10.5%PE23.1x

Latest News

PDD
US$105.23
PDD Holdings
7D
4.1%
1Y
-7.9%

PDD: Future Returns Will Hinge On Reviving Domestic User Engagement

Analysts have trimmed their fair value estimate for PDD Holdings to about $118 from roughly $119, citing recent price target cuts, mixed quarterly readthroughs, and a shift toward higher assumed profit margins paired with a lower future P/E multiple in their updated models. Analyst Commentary Recent Street research on PDD Holdings reflects a cautious tone, with several bearish analysts trimming price targets and reassessing their growth and execution assumptions.
RCL
US$348.00
Royal Caribbean Cruises
7D
7.2%
1Y
31.6%

RCL: 2026 Guidance And Margin Outlook Will Support Measured Upside Potential

Analysts have lifted their fair value estimate for Royal Caribbean Cruises by about $31 to $362, citing updated research that reflects slightly lower growth assumptions alongside firmer profit margin expectations and a broadly higher set of Street price targets. Analyst Commentary Street research on Royal Caribbean Cruises has been active, with several firms adjusting price targets in both directions.
CPNG
US$17.72
Coupang
7D
-12.1%
1Y
-25.1%

Coupang, Inc. (NYSE:CPNG) Shares Slammed 29% But Getting In Cheap Might Be Difficult Regardless

Feb 06
Coupang, Inc. (NYSE:CPNG) Shares Slammed 29% But Getting In Cheap Might Be Difficult Regardless
BKNG
US$4,457.17
Booking Holdings
7D
-10.9%
1Y
-8.8%

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

Analysts have lowered their fair value estimate for Booking Holdings by about US$18 to roughly US$6,209, as they balance slightly higher revenue growth and profit margin assumptions with a modestly higher discount rate and a small trim to the future P/E multiple, reflecting mixed recent changes in Street price targets and views on AI related risks and travel demand. Analyst Commentary Recent Street research on Booking Holdings reflects a split view, with some analysts more upbeat on execution and long term positioning, while others focus on valuation, AI risk, and travel demand uncertainty.
SBUX
US$99.45
Starbucks
7D
8.2%
1Y
-11.4%
AMZN
US$210.32
Amazon.com
7D
-12.1%
1Y
-8.2%

FY2025

Updated with most recent annual financial statement.
HD
US$385.15
Home Depot
7D
2.8%
1Y
-5.5%

HD: Wholesale Expansion And AI Tools Will Support Post Headwind Share Positioning

Our updated Home Depot narrative reflects a slightly lower analyst price target of about $394 per share, as analysts broadly recalibrated their models. They are balancing recent target cuts tied to softer near term trends with fresh upward revisions from firms citing longer term earnings drivers and share gain potential.
CCL
US$33.99
Carnival Corporation &
7D
13.2%
1Y
27.1%
MCD
US$327.16
McDonald's
7D
3.9%
1Y
11.2%
MELI
US$1,970.15
MercadoLibre
7D
-8.3%
1Y
-1.3%

MELI: Higher Sector Take Rates Will Support 2026 Margin Expansion

Analysts have trimmed their fair value estimate for MercadoLibre to about US$2,805 from roughly US$2,847, citing updated price targets, such as the recent move to US$2,900, and discussion of competitive take rates that feed into slightly adjusted growth and margin assumptions, the discount rate, and future P/E expectations. Analyst Commentary Recent Street research highlights a mix of optimism and caution around MercadoLibre, with price target adjustments and peer developments feeding into updated views on growth, margins, and valuation.
TSLA
US$411.11
Tesla
7D
-4.5%
1Y
13.7%
TJX
US$155.86
TJX Companies
7D
4.0%
1Y
25.0%
SE
US$108.54
Sea
7D
-6.8%
1Y
-11.8%
DASH
US$182.47
DoorDash
7D
-10.8%
1Y
-6.7%

DASH: Future Tech Platform Investments Will Drive Long Term Profitability

Our updated fair value estimate for DoorDash edges lower to about $342 per share from roughly $357, as analysts balance a series of mixed price target revisions with expectations for faster revenue growth, slightly leaner margins, and a more moderate future P/E multiple. Analyst Commentary Recent research on DoorDash reflects a split tape, with several downward price target revisions offset by a cluster of more optimistic views, including target hikes and an upgrade to a more positive rating.
BABA
US$162.51
Alibaba Group Holding
7D
-4.2%
1Y
57.0%

BABA: Cloud And AI Execution Will Drive Stronger Long-Term Earnings Power

Alibaba's fair value estimate edges higher to about $196.46, with analysts pointing to stronger modeled cloud and AI demand, along with updated price targets that reflect both rising capital expenditure in cloud and more moderate growth in retail revenue. Analyst Commentary Recent research on Alibaba highlights a split view, with some bullish analysts focusing on cloud and AI execution, while more cautious voices focus on spending levels and retail trends.
LOW
US$278.38
Lowe's Companies
7D
4.2%
1Y
10.5%

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.