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U.S. Consumer Discretionary Sector Analysis

UpdatedJan 14, 2026
DataAggregated Company Financials
Companies803
  • 7D1.7%
  • 3M5.0%
  • 1Y13.3%
  • YTD4.8%

In the last week, the Consumer Discretionary industry is up 1.7%, with Tesla up 3.3%. In the same time, PDD Holdings was down 8.4%. This means that the industry has gained 13% over the past year. As for the next few years, earnings are expected to grow by 20% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 14 Jan 2026US$8.0tUS$3.6tUS$221.6b19.8x36.3x2.3x
Fri, 12 Dec 2025US$7.7tUS$3.5tUS$222.0b19.6x34.8x2.2x
Sun, 09 Nov 2025US$7.7tUS$3.5tUS$223.4b17.9x34.6x2.2x
Tue, 07 Oct 2025US$7.8tUS$3.5tUS$220.9b19.1x35.1x2.2x
Thu, 04 Sep 2025US$7.3tUS$3.5tUS$221.9b20x33.1x2.1x
Sat, 02 Aug 2025US$7.0tUS$3.4tUS$215.9b18.1x32.6x2x
Mon, 30 Jun 2025US$6.9tUS$3.4tUS$216.2b18x31.8x2x
Wed, 28 May 2025US$6.6tUS$3.4tUS$220.2b17.2x30.2x1.9x
Fri, 25 Apr 2025US$5.9tUS$3.4tUS$210.6b16.5x28x1.7x
Sun, 23 Mar 2025US$6.2tUS$3.4tUS$211.8b16.7x29.5x1.8x
Tue, 18 Feb 2025US$7.3tUS$3.4tUS$205.0b18.6x35.5x2.2x
Thu, 16 Jan 2025US$6.9tUS$3.3tUS$201.8b18.7x34.4x2.1x
Sat, 14 Dec 2024US$7.3tUS$3.3tUS$201.0b19.1x36.6x2.2x
Mon, 11 Nov 2024US$6.4tUS$3.2tUS$180.7b18.9x35.2x2x
Wed, 09 Oct 2024US$5.9tUS$3.2tUS$178.6b17.9x32.9x1.9x
Fri, 06 Sep 2024US$5.4tUS$3.2tUS$177.5b17.1x30.4x1.7x
Sun, 04 Aug 2024US$5.2tUS$3.2tUS$174.5b16.7x29.9x1.7x
Tue, 02 Jul 2024US$5.5tUS$3.1tUS$167.2b17.1x33x1.8x
Thu, 30 May 2024US$5.4tUS$3.1tUS$168.0b17.8x32x1.7x
Sat, 27 Apr 2024US$5.3tUS$3.1tUS$160.0b17x33x1.7x
Mon, 25 Mar 2024US$5.4tUS$3.1tUS$159.5b17.5x33.6x1.7x
Wed, 21 Feb 2024US$5.2tUS$3.1tUS$152.8b17.9x34.1x1.7x
Fri, 19 Jan 2024US$5.0tUS$3.1tUS$141.5b16.9x35.7x1.7x
Sun, 17 Dec 2023US$5.3tUS$3.1tUS$139.6b17.1x37.9x1.7x
Tue, 14 Nov 2023US$4.8tUS$3.0tUS$131.1b15.1x36.4x1.6x
Thu, 12 Oct 2023US$4.8tUS$3.0tUS$114.0b15.1x42.3x1.6x
Sat, 09 Sep 2023US$4.9tUS$3.0tUS$111.8b15.5x44.1x1.7x
Mon, 07 Aug 2023US$5.1tUS$3.0tUS$110.6b16.1x46.1x1.7x
Wed, 05 Jul 2023US$5.0tUS$2.9tUS$99.8b15x49.8x1.7x
Fri, 02 Jun 2023US$4.4tUS$2.9tUS$98.9b13.2x44.8x1.5x
Sun, 30 Apr 2023US$4.3tUS$2.9tUS$87.9b13.8x49.2x1.5x
Tue, 28 Mar 2023US$4.2tUS$2.9tUS$81.0b13.4x52.3x1.5x
Thu, 23 Feb 2023US$4.6tUS$3.1tUS$81.7b13.4x56.2x1.5x
Sat, 21 Jan 2023US$4.5tUS$3.0tUS$108.0b12.7x41.5x1.5x
Price to Earnings Ratio

41.5x


Total Market Cap: US$4.5tTotal Earnings: US$108.0bTotal Revenue: US$3.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Consumer Discretionary Sector Price to Earnings3Y Average 37x202420252026
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 37.0x.
  • The 3-year average PS ratio of 1.8x is lower than the industry's current PS ratio of 2.3x.
Past Earnings Growth
  • The earnings for companies in the Consumer Discretionary industry have grown 27% 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 Market0.24%
Consumer Discretionary1.71%
Consumer Durables8.78%
Retail Distributors6.37%
Specialty Stores4.80%
Auto2.93%
Leisure2.21%
General Merchandise and Department Stores0.70%
Auto Components0.42%
Online Retail and Ecommerce0%0
Consumer Services-0.0058%
Luxury-0.20%
Hospitality-1.50%
Industry PE
  • Investors are most optimistic about the Auto industry which is trading above its 3-year average PE ratio of 117x.
    • Analysts are expecting annual earnings growth of 33.3%, which is higher than its past year's earnings decline of 35.3% per year.
Forecasted Growth
  • Analysts are most optimistic on the Leisure industry, expecting annual earnings growth of 49% over the next 5 years.
  • This is better than its past earnings decline of 35% per year.
  • In contrast, the Consumer Durables industry is expected to see its earnings grow by 7.6% 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$447.203.3%
+US$47.4b		12.8%PE292.8x
BABA Alibaba Group HoldingUS$167.0110.7%
+US$36.0b		104.5%PE20.8x
HD Home DepotUS$379.748.7%
+US$30.3b		-3.3%PE25.9x
AMZN Amazon.comUS$242.600.7%
+US$17.9b		11.4%PE33.9x
LOW Lowe's CompaniesUS$274.2511.3%
+US$15.6b		9.2%PE22.8x

Latest News

FLUT
US$203.70
Flutter Entertainment
7D
-7.3%
1Y
-21.5%
AMZN
US$242.60
Amazon.com
7D
0.7%
1Y
11.4%
LOW
US$274.25
Lowe's Companies
7D
11.3%
1Y
9.2%
SE
US$129.86
Sea
7D
-9.1%
1Y
17.6%

SE: Future Share Gains Will Stem From Fintech And Share Repurchase Program

Analysts have nudged their fair value estimate for Sea slightly lower to about US$191 from roughly US$192, citing recent Street research that highlights segment wide revenue strength, ongoing growth investments, and a mix of higher and lower price targets across firms following the Q3 report. Analyst Commentary Street research around the Q3 print is fairly constructive, but with different views on how much upside is left relative to current pricing and execution risks.
BABA
US$167.01
Alibaba Group Holding
7D
10.7%
1Y
104.5%

BABA: Cloud AI And Consumer Apps Will Build Stronger Long-Term Earnings Power

Analysts have trimmed their fair value estimate for Alibaba Group Holding to $195 from about $198, as slightly higher discount rates, marginally softer long term growth and profit assumptions, and a modestly lower future P/E expectation are weighed against mixed but generally constructive Street price target revisions that reflect both rising cloud investment needs and more measured retail momentum. Analyst Commentary Street research on Alibaba has become more mixed, with both bullish and bearish analysts adjusting their price targets and assumptions in response to recent results, cloud trends, and spending plans.
DASH
US$217.40
DoorDash
7D
-5.2%
1Y
28.4%
DHI
US$160.85
D.R. Horton
7D
11.3%
1Y
12.4%

DHI: Housing Affordability And Margin Pressure Will Restrain Returns

The analyst price target in our model for D.R. Horton shifts from US$110.00 to about US$118.96. This reflects updated views from analysts who are trimming Street targets on concerns around housing affordability, margin pressure, and mixed homebuilding conditions into 2026.
TJX
US$158.14
TJX Companies
7D
2.7%
1Y
32.6%

TJX: Off Price Execution And FY26 Guidance Will Support Multi Year Outlook

Analysts nudged their price target for TJX higher to about $164 from roughly $160, citing supportive Street research that highlights stronger Q3 results, updated FY26 guidance, and broad confidence in off-price retail trends and TJX's multi-banner momentum. Analyst Commentary Recent research points to a generally constructive stance on TJX, with multiple firms lifting valuation targets after the Q3 report and updated FY26 guidance.
PDD
US$112.32
PDD Holdings
7D
-8.4%
1Y
14.5%

PDD: Long Term Tariff Resilience Will Support Future Upside Potential

The analyst price target for PDD Holdings has been raised from $140 to $170. Analysts point to the company’s resilience in adjusting to U.S. tariffs and duty rule changes, while accepting ongoing margin pressure as it continues to invest for the long term.
MCD
US$309.44
McDonald's
7D
2.2%
1Y
9.9%
HD
US$379.74
Home Depot
7D
8.7%
1Y
-3.3%

HD: Ongoing Investments And Wholesale Expansion Will Support Post Headwind Share Gains

Analysts have trimmed their Home Depot price targets, with cuts such as US$455 to US$430 and US$475 to US$430, reflecting softer near term demand, recent earnings misses, and the expected impact of lower margin wholesale mix. They still see the company well positioned for a future housing recovery and share gains when conditions improve.
MELI
US$2,073.57
MercadoLibre
7D
-5.2%
1Y
18.2%

MELI: Rising Brazil Competition And Fair Valuation Will Shape Future Profit Margins

Analysts have trimmed their blended price target for MercadoLibre by about $7 per share. This reflects slightly softer revenue growth assumptions and higher discount rates, partly offset by expectations for stronger profit margins and a lower future P/E multiple in light of recent target moves from Barclays, UBS and JPMorgan.
CCL
US$30.99
Carnival Corporation &
7D
-4.1%
1Y
26.4%

CCL: Fair Value View Balances Record Bookings With Execution And Capital Risks

Narrative Update Analysts have lifted their fair value estimate for Carnival Corporation & to about US$28.61 from US$24.61, citing higher assumed revenue growth, a stronger profit margin profile and a slightly lower discount rate, alongside recent price target increases that highlight expectations for improved returns on invested capital and ongoing demand for cruising. Analyst Commentary Recent Street research around Carnival has leaned positive on the cruise sector overall, with some analysts pointing to expanding total addressable market, private island attractions supporting demand and what they describe as improving returns on invested capital.
TSLA
US$447.20
Tesla
7D
3.3%
1Y
12.8%

TSLA: AI And Robotics Ambitions Will Reshape Long-Term Equity Story

Analysts have raised their Tesla fair value estimate from $500 to $600. They point to updated assumptions for higher revenue growth, wider profit margins, and a lower future P/E multiple, even as recent research still highlights risks around delivery trends, spending plans, and governance.
LVS
US$59.88
Las Vegas Sands
7D
-6.1%
1Y
33.1%

LVS: Singapore Strength And Macau Volatility Will Shape Capital Returns

Analysts have lifted their fair value estimate for Las Vegas Sands to US$60 from US$45, citing higher projected revenue growth, wider profit margins, and a lower future P/E multiple supported by recent price target increases and positive commentary around Singapore and resilient Macau performance. Analyst Commentary Recent Street research around Las Vegas Sands has leaned constructive, but it also gives a sense of where sentiment could turn if conditions soften in key markets like Macau and Singapore.
CPNG
US$21.97
Coupang
7D
-6.6%
1Y
0%

CPNG Margin Expansion And Earnings Outlook Will Drive Bullish Upside Potential

Analysts have raised their fair value estimate for Coupang from $22.80 to $28.00 per share, citing increased confidence in the company’s margin expansion and earnings outlook following updated post Q3 forecasts that are reflected in higher Street price targets. Analyst Commentary While some on the Street have become more constructive following the Q3 report, bearish analysts continue to flag several risks that could limit upside to the shares despite higher price targets in parts of the coverage universe.