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

U.S. Consumer Discretionary Sector Analysis

UpdatedFeb 16, 2026
DataAggregated Company Financials
Companies798
  • 7D-2.4%
  • 3M-2.9%
  • 1Y-1.7%
  • YTD-5.2%

Over the last 7 days, the Consumer Discretionary industry has dropped 2.4%, driven by Amazon.com declining 4.8%. Over the last year, the industry has been flat overall. Looking forward, 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, 17 Feb 2026US$7.4tUS$3.6tUS$207.6b20.3x35.6x2.1x
Thu, 15 Jan 2026US$7.9tUS$3.6tUS$221.6b19.5x35.6x2.2x
Sat, 13 Dec 2025US$7.8tUS$3.5tUS$221.9b19.2x35.1x2.2x
Mon, 10 Nov 2025US$7.7tUS$3.5tUS$223.4b17.9x34.6x2.2x
Wed, 08 Oct 2025US$7.8tUS$3.5tUS$220.9b19x35.5x2.3x
Fri, 05 Sep 2025US$7.4tUS$3.5tUS$221.9b20.3x33.1x2.1x
Sun, 03 Aug 2025US$6.8tUS$3.4tUS$216.0b18.1x31.4x2x
Tue, 01 Jul 2025US$6.9tUS$3.4tUS$216.2b18.1x32x2x
Thu, 29 May 2025US$6.8tUS$3.4tUS$218.4b17.1x31.2x2x
Sat, 26 Apr 2025US$6.1tUS$3.4tUS$210.6b16.5x29x1.8x
Mon, 24 Mar 2025US$6.2tUS$3.4tUS$211.8b16.7x29.5x1.8x
Wed, 19 Feb 2025US$7.3tUS$3.4tUS$204.4b19.3x35.6x2.2x
Fri, 17 Jan 2025US$7.2tUS$3.3tUS$201.8b18.7x35.5x2.1x
Sun, 15 Dec 2024US$7.4tUS$3.3tUS$201.0b19.1x36.6x2.2x
Tue, 12 Nov 2024US$6.4tUS$3.2tUS$180.6b18.9x35.2x2x
Thu, 10 Oct 2024US$5.9tUS$3.2tUS$178.5b17.9x32.8x1.9x
Sat, 07 Sep 2024US$5.3tUS$3.2tUS$177.6b17x29.9x1.7x
Mon, 05 Aug 2024US$5.2tUS$3.2tUS$174.0b16.7x30x1.7x
Wed, 03 Jul 2024US$5.6tUS$3.1tUS$167.3b17x33.3x1.8x
Fri, 31 May 2024US$5.4tUS$3.1tUS$167.8b18x32x1.7x
Sun, 28 Apr 2024US$5.3tUS$3.1tUS$159.9b17.2x33x1.7x
Tue, 26 Mar 2024US$5.4tUS$3.1tUS$159.7b17.5x33.6x1.7x
Thu, 22 Feb 2024US$5.2tUS$3.1tUS$152.7b17.9x34.2x1.7x
Sat, 20 Jan 2024US$5.1tUS$3.1tUS$141.6b17.1x35.7x1.7x
Mon, 18 Dec 2023US$5.3tUS$3.1tUS$139.6b17.1x37.8x1.7x
Wed, 15 Nov 2023US$4.8tUS$3.0tUS$131.2b15.8x36.4x1.6x
Fri, 13 Oct 2023US$4.8tUS$3.0tUS$113.9b15x42.3x1.6x
Sun, 10 Sep 2023US$4.9tUS$3.0tUS$111.8b15.5x43.9x1.6x
Tue, 08 Aug 2023US$5.1tUS$3.0tUS$110.7b16x46.4x1.7x
Thu, 06 Jul 2023US$5.0tUS$2.9tUS$99.8b15x49.8x1.7x
Sat, 03 Jun 2023US$4.5tUS$2.9tUS$99.0b13.9x45.7x1.6x
Mon, 01 May 2023US$4.3tUS$2.9tUS$87.9b13.8x49.2x1.5x
Wed, 29 Mar 2023US$4.3tUS$2.9tUS$82.0b13.5x52.1x1.5x
Fri, 24 Feb 2023US$4.6tUS$3.1tUS$86.5b13.7x53x1.5x
Price to Earnings Ratio

53x


Total Market Cap: US$4.6tTotal Earnings: US$86.5bTotal Revenue: US$3.1tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Consumer Discretionary Sector Price to Earnings3Y Average 36.7x202420252026
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 36.7x.
  • 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 5.4% 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 Market-1.34%
Consumer Discretionary-2.36%
Consumer Durables5.31%
Auto Components2.23%
Luxury1.76%
Auto1.41%
Online Retail and Ecommerce0%0
Retail Distributors-0.88%
Specialty Stores-1.62%
Leisure-2.54%
Consumer Services-4.76%
General Merchandise and Department Stores-4.90%
Hospitality-6.34%
Industry PE
  • Investors are most optimistic about the Luxury industry which is trading above its 3-year average PE ratio of 28.4x.
    • Analysts are expecting annual earnings growth of 18.9%, 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 7.7% 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$391.052.6%
+US$10.0b		-4.5%PE26.7x
LOW Lowe's CompaniesUS$287.393.8%
+US$5.9b		14.1%PE23.8x
MAR Marriott InternationalUS$353.896.8%
+US$4.9b		24.8%PE36.1x
DHI D.R. HortonUS$167.789.3%
+US$4.1b		28.5%PE14.6x
RIVN Rivian AutomotiveUS$17.7320.7%
+US$4.0b		26.4%PS4.1x

Latest News

F
US$14.12
Ford Motor
7D
3.9%
1Y
48.9%
AMZN
US$198.79
Amazon.com
7D
-4.8%
1Y
-13.1%
RCL
US$319.61
Royal Caribbean Cruises
7D
-8.2%
1Y
21.5%
RIVN
US$17.73
Rivian Automotive
7D
20.7%
1Y
26.4%
CVNA
US$342.87
Carvana
7D
-16.7%
1Y
20.2%
MAR
US$353.89
Marriott International
7D
6.8%
1Y
24.8%

Marriott International, Inc. Just Missed Earnings - But Analysts Have Updated Their Models

Feb 13
Marriott International, Inc. Just Missed Earnings - But Analysts Have Updated Their Models
FLUT
US$125.17
Flutter Entertainment
7D
-19.0%
1Y
-58.1%

FLUT: U.S. Sports Betting Expansion Will Counter U.K. Tax And Promotion Pressures

Analysts have trimmed their average price target on Flutter Entertainment to about $275 from roughly $285. This reflects slightly lower assumptions for revenue growth and profit margins, a modestly higher discount rate, and a higher future P/E multiple based on recent sector research updates.
AZO
US$3,858.16
AutoZone
7D
6.2%
1Y
11.6%
BABA
US$155.73
Alibaba Group Holding
7D
-4.5%
1Y
24.9%

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.
DHI
US$167.78
D.R. Horton
7D
9.3%
1Y
28.5%

DHI: Housing Demand And Regulatory Risks Will Shape Returns Through 2026

Analysts have trimmed their average price target for D.R. Horton by about $5 to roughly $160, reflecting a mix of reduced targets from several firms and offsetting increases from others as they incorporate updated views on margins, growth, and valuation multiples. Analyst Commentary Bullish and bearish analysts are fairly split on D.R. Horton, with some focusing on long term housing fundamentals and others highlighting nearer term margin and affordability pressures.
ORLY
US$96.66
O'Reilly Automotive
7D
4.2%
1Y
9.9%

O'Reilly Automotive, Inc. (NASDAQ:ORLY) Yearly Results: Here's What Analysts Are Forecasting For This Year

Feb 07
O'Reilly Automotive, Inc. (NASDAQ:ORLY) Yearly Results: Here's What Analysts Are Forecasting For This Year
PDD
US$100.28
PDD Holdings
7D
-5.0%
1Y
-19.2%

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.
SBUX
US$93.79
Starbucks
7D
-5.2%
1Y
-16.7%
HD
US$391.05
Home Depot
7D
2.6%
1Y
-4.5%

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.
DASH
US$160.34
DoorDash
7D
-13.9%
1Y
-24.9%

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.
LOW
US$287.39
Lowe's Companies
7D
3.8%
1Y
14.1%

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.