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U.S. Consumer Discretionary Sector Analysis

UpdatedFeb 27, 2026
DataAggregated Company Financials
Companies798
  • 7D0.2%
  • 3M-4.6%
  • 1Y8.4%
  • YTD-4.4%

The Consumer Discretionary industry has been flat over the last week, but MercadoLibre has lost 12%. As for the the longer term, the industry is up 7.8% 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, 27 Feb 2026US$7.5tUS$3.6tUS$206.7b20.4x36.3x2.1x
Sun, 25 Jan 2026US$7.9tUS$3.6tUS$221.3b19.7x35.5x2.2x
Tue, 23 Dec 2025US$7.8tUS$3.6tUS$220.8b19.6x35.3x2.2x
Thu, 20 Nov 2025US$7.3tUS$3.6tUS$224.1b17.2x32.5x2.1x
Sat, 18 Oct 2025US$7.5tUS$3.5tUS$220.8b18.7x34x2.2x
Mon, 15 Sep 2025US$7.7tUS$3.5tUS$221.3b19.7x34.7x2.2x
Wed, 13 Aug 2025US$7.0tUS$3.4tUS$218.8b19.4x32x2x
Fri, 11 Jul 2025US$6.9tUS$3.4tUS$216.1b18.9x31.9x2x
Sun, 08 Jun 2025US$6.7tUS$3.4tUS$217.3b17.5x30.7x1.9x
Tue, 06 May 2025US$6.2tUS$3.4tUS$217.2b17.1x28.6x1.8x
Thu, 03 Apr 2025US$6.3tUS$3.4tUS$211.9b17.3x29.6x1.8x
Sat, 01 Mar 2025US$6.8tUS$3.4tUS$211.4b17.8x32.3x2x
Mon, 27 Jan 2025US$7.3tUS$3.3tUS$202.3b18.9x36.1x2.2x
Wed, 25 Dec 2024US$7.4tUS$3.3tUS$200.9b18x36.7x2.2x
Fri, 22 Nov 2024US$6.7tUS$3.4tUS$198.6b18.5x33.8x2x
Sun, 20 Oct 2024US$5.8tUS$3.2tUS$178.5b18.6x32.7x1.8x
Tue, 17 Sep 2024US$5.6tUS$3.2tUS$178.0b17.3x31.6x1.8x
Thu, 15 Aug 2024US$5.3tUS$3.2tUS$173.5b16.9x30.6x1.7x
Sat, 13 Jul 2024US$5.8tUS$3.1tUS$167.4b17.6x34.4x1.8x
Mon, 10 Jun 2024US$5.4tUS$3.1tUS$168.0b17.9x32.2x1.7x
Wed, 08 May 2024US$5.5tUS$3.1tUS$166.4b17.7x32.8x1.8x
Fri, 05 Apr 2024US$5.3tUS$3.1tUS$160.3b17.9x33.2x1.7x
Sun, 03 Mar 2024US$5.5tUS$3.1tUS$155.1b17.7x35.2x1.8x
Tue, 30 Jan 2024US$5.1tUS$3.1tUS$146.4b17.4x34.7x1.7x
Thu, 28 Dec 2023US$5.4tUS$3.1tUS$141.2b17.8x37.9x1.8x
Sat, 25 Nov 2023US$5.0tUS$3.0tUS$139.3b15.4x35.8x1.6x
Mon, 23 Oct 2023US$4.5tUS$3.0tUS$113.0b14.5x39.5x1.5x
Wed, 20 Sep 2023US$4.9tUS$3.0tUS$112.6b15x43.8x1.7x
Fri, 18 Aug 2023US$4.8tUS$3.0tUS$112.8b15.8x42.9x1.6x
Sun, 16 Jul 2023US$5.1tUS$2.9tUS$99.9b15.5x51.2x1.8x
Tue, 13 Jun 2023US$4.8tUS$2.9tUS$99.4b14.5x47.8x1.6x
Thu, 11 May 2023US$4.3tUS$2.9tUS$92.9b14x45.8x1.5x
Sat, 08 Apr 2023US$4.3tUS$2.9tUS$81.8b13.5x53.1x1.5x
Mon, 06 Mar 2023US$4.6tUS$3.1tUS$86.3b14.5x53.1x1.5x
Price to Earnings Ratio

53.1x


Total Market Cap: US$4.6tTotal Earnings: US$86.3bTotal 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 5.6% 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 Market0.58%
Consumer Discretionary0.16%
Hospitality2.56%
Consumer Services1.08%
Specialty Stores0.44%
General Merchandise and Department Stores0.27%
Online Retail and Ecommerce0%0
Retail Distributors-0.075%
Auto-0.62%
Luxury-0.70%
Leisure-0.94%
Consumer Durables-1.48%
Auto Components-3.06%
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 18.8%, which is higher than its past year's earnings decline of 13.1% per year.
Forecasted Growth
  • Analysts are most optimistic on the Leisure industry, expecting annual earnings growth of 34% 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$207.921.5%
+US$32.8b		-0.4%PE28.7x
BKNG Booking HoldingsUS$4.25k6.1%
+US$7.7b		-13.6%PE24.9x
ABNB AirbnbUS$136.978.9%
+US$6.7b		-1.8%PE32.7x
PDD PDD HoldingsUS$105.393.4%
+US$4.9b		-11.2%PE10x
MCD McDonald'sUS$334.532.3%
+US$4.7b		7.9%PE27.8x

Latest News

NKE
US$63.95
NIKE
7D
-2.5%
1Y
-20.1%
HD
US$375.09
Home Depot
7D
-0.9%
1Y
-3.9%
TSLA
US$408.58
Tesla
7D
-0.8%
1Y
39.5%
LOW
US$264.39
Lowe's Companies
7D
-5.0%
1Y
7.7%
BKNG
US$4,250.26
Booking Holdings
7D
6.1%
1Y
-13.6%
MELI
US$1,740.88
MercadoLibre
7D
-12.8%
1Y
-18.3%
AMZN
US$207.92
Amazon.com
7D
1.5%
1Y
-0.4%
BABA
US$148.05
Alibaba Group Holding
7D
-4.0%
1Y
8.4%

BABA: AI Cloud Monetization And Chips Will Support Long Term Upside

Analysts have nudged their fair value estimate for Alibaba Group Holding slightly higher to about $198 per share. This reflects updated assumptions for AI focused cloud investment, modest tweaks to revenue growth and profit margin expectations, and a mix of recent rating downgrades and upgrades that highlight both rising capital intensity and ongoing monetization efforts.
SE
US$110.90
Sea
7D
-3.2%
1Y
-12.3%

SE: Future Upside Will Stem From Higher E Commerce Monetization

Analysts have nudged their fair value estimate for Sea lower from $189.55 to $181.49, citing updated assumptions around take rates, revenue growth, margins, and future P/E following recent research on Shopee and the broader business. Analyst Commentary Bullish Takeaways Bullish analysts view Shopee’s higher take rates as a sign that Sea can better monetize its existing traffic, which supports the revised fair value despite the lower target.
MCD
US$334.53
McDonald's
7D
2.3%
1Y
7.9%
GRMN
US$254.16
Garmin
7D
6.0%
1Y
13.4%
ABNB
US$136.97
Airbnb
7D
8.9%
1Y
-1.8%

ABNB: AI Multiple Compression Likely To Cap Upside Despite Travel Tailwinds

Airbnb's fair value estimate edges up to about $110, reflecting a slightly lower discount rate and modestly stronger revenue growth assumptions, even as analysts recalibrate price targets around $150 and below in response to sector wide multiple compression and evolving views on AI related risks and travel demand drivers. Analyst Commentary Recent Street research on Airbnb reflects a mixed backdrop, with several firms trimming price targets at the same time others upgrade ratings and lift their targets.
CVNA
US$353.90
Carvana
7D
6.3%
1Y
58.6%

CVNA: Margin Pressures And Short Report Risks Will Confront Index Inclusion Benefits

Analysts have reduced our Carvana fair value estimate by about $22 to $307.90. This reflects recent target cuts that account for near-term margin pressure after Q4 misses, alongside ongoing expectations for scale, share gains in used vehicles, and improved profitability over time.
F
US$14.41
Ford Motor
7D
4.6%
1Y
55.1%

F: 2026 EV Loss Trajectory Will Constrain Margins And Earnings Multiple

Our analyst price target for Ford Motor has increased by $0.75 to reflect higher estimated fair value, a slightly lower discount rate, modestly slower projected revenue declines, improved profit margin assumptions, and a lower future P/E in line with recent target hikes from multiple firms and analyst views that 2026 could be a more predictable year for automakers. Analyst Commentary Recent Street research around Ford clusters around 2026 as a key year, with several firms adjusting price targets and ratings.
PDD
US$105.39
PDD Holdings
7D
3.4%
1Y
-11.2%

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.
ORLY
US$91.33
O'Reilly Automotive
7D
-3.0%
1Y
1.2%

ORLY: Steady Execution And Buybacks Expected To Support Balanced Risk Reward

Analysts have trimmed their price targets for O'Reilly Automotive, and our fair value estimate has edged down by about $4 to $105.72. They cite recent cuts from multiple research firms, even as they factor in relatively steady assumptions on growth, margins, and future P/E.