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U.S. Consumer Discretionary Sector Analysis

UpdatedJan 23, 2026
DataAggregated Company Financials
Companies803
  • 7D-0.3%
  • 3M1.3%
  • 1Y5.5%
  • YTD3.1%

Over the last 7 days, the Consumer Discretionary industry has remained flat. As for the the longer term, the industry is up 5.5% over the past 12 months. 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
Fri, 23 Jan 2026US$7.7tUS$3.6tUS$221.3b19.7x35x2.2x
Sun, 21 Dec 2025US$7.8tUS$3.6tUS$220.7b19.6x35.2x2.2x
Tue, 18 Nov 2025US$7.5tUS$3.5tUS$221.4b17.5x33.8x2.1x
Thu, 16 Oct 2025US$7.6tUS$3.5tUS$220.8b18.5x34.3x2.2x
Sat, 13 Sep 2025US$7.7tUS$3.5tUS$222.0b19.7x34.5x2.2x
Mon, 11 Aug 2025US$7.0tUS$3.4tUS$217.8b18.8x32.1x2x
Wed, 09 Jul 2025US$6.9tUS$3.4tUS$216.1b18.9x31.8x2x
Fri, 06 Jun 2025US$6.6tUS$3.4tUS$217.3b17.2x30.3x1.9x
Sun, 04 May 2025US$6.3tUS$3.4tUS$217.2b16.9x28.9x1.8x
Tue, 01 Apr 2025US$6.2tUS$3.4tUS$211.9b16.4x29.2x1.8x
Thu, 27 Feb 2025US$6.9tUS$3.4tUS$210.1b18.4x32.8x2x
Sat, 25 Jan 2025US$7.3tUS$3.3tUS$202.3b18.9x36.2x2.2x
Mon, 23 Dec 2024US$7.2tUS$3.3tUS$200.7b18.2x35.7x2.1x
Wed, 20 Nov 2024US$6.7tUS$3.4tUS$197.9b18.1x33.9x2x
Fri, 18 Oct 2024US$5.8tUS$3.2tUS$178.3b18.4x32.7x1.8x
Sun, 15 Sep 2024US$5.6tUS$3.2tUS$177.5b17.4x31.7x1.8x
Tue, 13 Aug 2024US$5.2tUS$3.2tUS$172.9b16.8x30.1x1.7x
Thu, 11 Jul 2024US$5.8tUS$3.1tUS$167.3b17.2x34.5x1.8x
Sat, 08 Jun 2024US$5.4tUS$3.1tUS$168.0b17.9x32.4x1.8x
Mon, 06 May 2024US$5.4tUS$3.1tUS$166.4b17.4x32.7x1.8x
Wed, 03 Apr 2024US$5.4tUS$3.1tUS$160.5b18.2x33.7x1.8x
Fri, 01 Mar 2024US$5.4tUS$3.1tUS$154.1b17.6x34.9x1.8x
Sun, 28 Jan 2024US$5.1tUS$3.1tUS$146.5b17.4x34.6x1.7x
Tue, 26 Dec 2023US$5.3tUS$3.1tUS$141.3b17.7x37.6x1.7x
Thu, 23 Nov 2023US$5.0tUS$3.0tUS$138.9b15.3x35.7x1.6x
Sat, 21 Oct 2023US$4.5tUS$3.0tUS$113.0b14.5x39.5x1.5x
Mon, 18 Sep 2023US$5.0tUS$3.0tUS$112.5b15.1x44.6x1.7x
Wed, 16 Aug 2023US$4.9tUS$3.0tUS$112.1b16.2x43.8x1.6x
Fri, 14 Jul 2023US$5.1tUS$2.9tUS$99.9b15.4x51.2x1.8x
Sun, 11 Jun 2023US$4.7tUS$2.9tUS$99.3b14.3x47.1x1.6x
Tue, 09 May 2023US$4.2tUS$2.9tUS$92.3b14x46x1.5x
Thu, 06 Apr 2023US$4.3tUS$2.9tUS$81.6b13.3x53.1x1.5x
Sat, 04 Mar 2023US$4.6tUS$3.1tUS$86.2b14.5x53.2x1.5x
Mon, 30 Jan 2023US$4.8tUS$3.0tUS$109.4b13.2x43.9x1.6x
Price to Earnings Ratio

43.9x


Total Market Cap: US$4.8tTotal Earnings: US$109.4bTotal 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 2.2x.
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 5.2% 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-0.28%
Consumer Discretionary-0.27%
Auto2.07%
Retail Distributors0.22%
Leisure0.22%
Consumer Services0.013%
Online Retail and Ecommerce0%0
Specialty Stores-0.00061%
Luxury-0.70%
General Merchandise and Department Stores-0.93%
Auto Components-1.44%
Hospitality-1.53%
Consumer Durables-2.28%
Industry PE
  • Investors are most optimistic about the Auto industry which is trading above its 3-year average PE ratio of 119x.
    • Analysts are expecting annual earnings growth of 33.0%, 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 7.4% 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$449.362.5%
+US$35.9b		9.0%PE294.2x
BABA Alibaba Group HoldingUS$177.183.7%
+US$14.0b		105.8%PE22x
ORLY O'Reilly AutomotiveUS$98.885.6%
+US$4.4b		17.6%PE33.6x
AZO AutoZoneUS$3.70k6.7%
+US$3.9b		9.6%PE24.9x
SBUX StarbucksUS$95.832.7%
+US$2.9b		-2.2%PE58.7x

Latest News

MELI
US$2,153.75
MercadoLibre
7D
2.6%
1Y
17.8%

MELI: Argentina De Risking Will Support Upside Despite Brazilian E Commerce Pressures

Narrative Update The updated analyst fair value estimate for MercadoLibre has moved from about $3,406 to roughly $3,285. This reflects a slightly higher discount rate and more measured assumptions on revenue growth, profit margins, and future P/E, in line with recent Street research where analysts have modestly adjusted price targets while weighing Argentina de risking against a more competitive Brazilian e commerce backdrop.
CVNA
US$478.45
Carvana
7D
3.8%
1Y
96.8%
SBUX
US$95.83
Starbucks
7D
2.7%
1Y
-2.2%

SBUX: Turnaround Progress And Labor Disputes Will Shape Future Traffic And Margins

Narrative Update Analysts have nudged their Starbucks fair value estimate higher to US$95.06 from US$94.13, citing refreshed price targets from firms raising expectations for coffee chains within their 2026 restaurant group outlooks and ongoing confidence in the company’s turnaround efforts despite sector wide sales headwinds. Analyst Commentary Recent research on Starbucks reflects a mix of optimism around the turnaround story and caution around sector wide pressures, with several firms fine tuning price targets and earnings assumptions as they update 2026 restaurant group outlooks.
AZO
US$3,698.63
AutoZone
7D
6.7%
1Y
9.6%

AZO: Do It For Me Strength Will Counter Recent Caution On Do It Yourself

Narrative Update Analysts have trimmed their AutoZone fair value estimate by about $118 to $4,213, reflecting slightly higher discount rate assumptions, a modestly lower profit margin outlook, and a higher future P/E input following recent price target resets and sector views from major research firms. Analyst Commentary Street research on AutoZone has turned more mixed recently, with some firms trimming price targets while others see an improved risk and reward profile after the stock's pullback.
TSLA
US$449.36
Tesla
7D
2.5%
1Y
9.0%

TSLA: Autonomy And Robotaxi Progress Will Reshape Long-Term Equity Story

Analysts have nudged their Tesla price targets higher by aligning models with slightly lower discount rates, marginally firmer revenue growth and profit margin assumptions, and a modestly reduced future P/E multiple. Recent research highlights both upside tied to full self driving and robotaxi potential, as well as ongoing concerns about auto fundamentals and execution risk.
ORLY
US$98.88
O'Reilly Automotive
7D
5.6%
1Y
17.6%

ORLY: Pricing Tailwinds And Expanded Buybacks Will Support Future Upside

Analysts have trimmed their price target on O'Reilly Automotive by $5, citing slightly higher discount rate and P/E assumptions, along with recent Street research that includes a modest target cut at Morgan Stanley and an upgrade with supportive pricing commentary at Raymond James. Analyst Commentary Bullish analysts are highlighting a constructive setup for O'Reilly Automotive, pointing to recent research that balances a modest price target trim against more optimistic rating changes and commentary on pricing.
DKNG
US$31.62
DraftKings
7D
-10.8%
1Y
-23.8%

DKNG: Federally Regulated Event Contracts Will Unlock New States Over Time

Analysts have nudged their DraftKings fair value estimate higher to about US$45.34 from roughly US$44.47, reflecting updated views on slightly stronger long term profitability; a modestly lower discount rate; and a somewhat lower forward P/E multiple after recent price target revisions and mixed rating changes across the Street. Analyst Commentary Recent Street research on DraftKings shows a split tape, with some firms turning more constructive around the long term opportunity and others calling out nearer term risks tied to prediction markets, hold volatility and regulatory questions.
CPNG
US$19.95
Coupang
7D
-6.1%
1Y
-9.3%

CPNG: Data Breach Resolution And Margin Execution Will Support US$40 Upside

Analysts have kept their Coupang fair value estimate steady at US$40.00, but updated assumptions around discount rate, revenue growth, profit margins and a higher future P/E reflect a mix of regulatory risk after the data breach and continued confidence from recent price target moves, such as Barclays' lift to US$40 and a more constructive stance from Deutsche Bank. Analyst Commentary Recent research highlights a split view, with some firms cautious after the data breach and others more constructive on Coupang's ability to execute and support a higher valuation.
FLUT
US$181.19
Flutter Entertainment
7D
-9.9%
1Y
-32.4%
AMZN
US$234.34
Amazon.com
7D
-1.6%
1Y
-0.5%
BABA
US$177.18
Alibaba Group Holding
7D
3.7%
1Y
105.8%
YUM
US$153.53
Yum! Brands
7D
-4.7%
1Y
20.9%

YUM: Potential Pizza Hut Exit And Beef Tariff Relief Will Shape Outlook

Analysts slightly trimmed their consolidated fair value estimate for Yum! Brands to about $164.92 per share from roughly $165.56 as they weighed mixed price target revisions.
ROST
US$187.01
Ross Stores
7D
-3.5%
1Y
25.8%

ROST: Off Price Execution And Clean Comps Will Support Balanced Returns

Analysts lifted their Ross Stores fair value estimate to about $192 per share from roughly $183, citing higher Street price targets, resilient same-store-sales trends in recent quarters, and ongoing interest in the off price model across several recent research updates. Analyst Commentary Recent research on Ross Stores shows a cluster of higher price targets and generally constructive views on the off price model, but also flags several risks that investors should keep in mind.
TJX
US$153.42
TJX Companies
7D
-1.8%
1Y
25.1%

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.
RCL
US$285.55
Royal Caribbean Cruises
7D
2.7%
1Y
19.9%

RCL: Softer Revenue Yields And 2026 EPS Guidance Will Pressure Shares

Analysts have trimmed their price target for Royal Caribbean Cruises by about $23 to reflect a combination of slightly higher required returns, a modestly lower assumed profit margin and valuation multiple, and updated views on revenue growth and earnings visibility following recent Q3 commentary and 2026 guidance. Analyst Commentary Recent research updates on Royal Caribbean point to a more cautious tone, even as analysts continue to engage with the story following Q3 results and the release of 2026 guidance.
PDD
US$106.07
PDD Holdings
7D
-1.3%
1Y
2.0%

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.