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U.S. Consumer Discretionary Sector Analysis

UpdatedSep 18, 2025
DataAggregated Company Financials
Companies770
  • 7D4.6%
  • 3M16.4%
  • 1Y30.2%
  • YTD11.9%

The Consumer Discretionary industry is up 4.6% in the last week, with Tesla up 22%. During this same period, the Royal Caribbean Cruises underperformed, falling 5.4%. In the last 12 months, the industry was up 30%. As for the next few years, earnings are expected to grow by 18% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 18 Sep 2025US$7.8tUS$3.5tUS$221.4b19.8x35.4x2.3x
Sat, 16 Aug 2025US$7.2tUS$3.5tUS$217.2b19.7x33.1x2.1x
Mon, 14 Jul 2025US$7.0tUS$3.4tUS$215.7b18.9x32.3x2x
Wed, 11 Jun 2025US$6.8tUS$3.4tUS$217.3b17.7x31.2x2x
Fri, 09 May 2025US$6.2tUS$3.4tUS$218.7b16.8x28.4x1.8x
Sun, 06 Apr 2025US$5.6tUS$3.4tUS$211.7b15.5x26.6x1.7x
Tue, 04 Mar 2025US$6.8tUS$3.4tUS$211.4b17.4x32.3x2x
Thu, 30 Jan 2025US$7.4tUS$3.3tUS$198.4b19x37.2x2.2x
Sat, 28 Dec 2024US$7.3tUS$3.3tUS$200.9b18.1x36.4x2.2x
Mon, 25 Nov 2024US$6.7tUS$3.4tUS$199.9b18.6x33.6x2x
Wed, 23 Oct 2024US$5.8tUS$3.2tUS$178.2b18.2x32.6x1.8x
Fri, 20 Sep 2024US$5.6tUS$3.2tUS$177.6b17.6x31.8x1.8x
Sun, 18 Aug 2024US$5.5tUS$3.2tUS$172.6b17.4x31.8x1.7x
Tue, 16 Jul 2024US$5.8tUS$3.1tUS$167.3b17.9x34.6x1.9x
Thu, 13 Jun 2024US$5.4tUS$3.1tUS$168.0b17.8x32.1x1.7x
Sat, 11 May 2024US$5.5tUS$3.1tUS$166.9b18.3x32.7x1.8x
Mon, 08 Apr 2024US$5.3tUS$3.1tUS$160.4b18x33.3x1.7x
Wed, 06 Mar 2024US$5.4tUS$3.1tUS$154.9b17.8x34.6x1.8x
Fri, 02 Feb 2024US$5.1tUS$3.1tUS$149.4b16.8x34x1.7x
Sun, 31 Dec 2023US$5.3tUS$3.1tUS$141.6b17.7x37.5x1.7x
Tue, 28 Nov 2023US$5.0tUS$3.0tUS$139.8b15.4x35.7x1.6x
Thu, 26 Oct 2023US$4.4tUS$3.0tUS$112.8b14.6x39.3x1.5x
Sat, 23 Sep 2023US$4.7tUS$3.0tUS$112.4b14.9x41.9x1.6x
Mon, 21 Aug 2023US$4.7tUS$3.0tUS$112.4b16x42.2x1.6x
Wed, 19 Jul 2023US$5.1tUS$2.9tUS$99.9b15.7x51.4x1.8x
Fri, 16 Jun 2023US$4.8tUS$2.9tUS$98.9b14.8x48.7x1.7x
Sun, 14 May 2023US$4.2tUS$2.9tUS$94.2b14x45x1.5x
Tue, 11 Apr 2023US$4.4tUS$2.9tUS$81.8b13.6x53.3x1.5x
Thu, 09 Mar 2023US$4.5tUS$3.1tUS$86.3b14.3x51.8x1.5x
Sat, 04 Feb 2023US$4.9tUS$3.1tUS$111.4b13.5x43.6x1.6x
Mon, 02 Jan 2023US$4.0tUS$3.0tUS$108.5b11.7x36.9x1.3x
Wed, 30 Nov 2022US$4.3tUS$3.0tUS$108.9b11.7x39.8x1.4x
Fri, 28 Oct 2022US$4.5tUS$3.0tUS$112.0b11.1x39.8x1.5x
Sun, 25 Sep 2022US$4.6tUS$3.0tUS$111.0b10.7x41.3x1.5x
Price to Earnings Ratio

41.3x


Total Market Cap: US$4.6tTotal Earnings: US$111.0bTotal Revenue: US$3.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Consumer Discretionary Sector Price to Earnings3Y Average 37.9x202320242025
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 37.9x.
  • 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 26% per year over the last three years.
  • Revenues for these companies have grown 5.5% 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 Market1.17%
Consumer Discretionary4.63%
Auto20.01%
General Merchandise and Department Stores2.47%
Auto Components1.98%
Specialty Stores0.61%
Consumer Services0.49%
Online Retail and Ecommerce0%0
Luxury-0.15%
Retail Distributors-0.16%
Hospitality-0.67%
Leisure-1.08%
Consumer Durables-1.88%
Industry PE
  • Investors are most optimistic about the Auto Components industry which is trading above its 3-year average PE ratio of 143x.
    • Analysts are expecting annual earnings growth of 31.7%, which is higher than its past year's earnings growth of 2.8% per year.
Forecasted Growth
  • Analysts are most optimistic on the Leisure industry, expecting annual earnings growth of 38% over the next 5 years.
  • This is better than its past earnings decline of 22% per year.
  • In contrast, the Consumer Durables industry is expected to see its earnings grow by 4.3% 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$425.8615.5%
+US$189.6b		74.6%PE240.7x
BABA Alibaba Group HoldingUS$166.1715.5%
+US$49.7b		96.8%PE17.8x
AMZN Amazon.comUS$231.620.6%
+US$13.8b		24.2%PE35x
PDD PDD HoldingsUS$134.867.3%
+US$13.0b		34.9%PE13.9x
NIO NIOUS$7.4530.2%
+US$5.2b		48.4%PS1.8x

Latest News

HD
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Home Depot
7D
0.9%
1Y
8.6%
NKE
US$72.31
NIKE
7D
-2.6%
1Y
-10.6%

Product Portfolio Transition And Digital Cleanup Will Create New Opportunities

Analysts have modestly raised their price target for NIKE to $79.76, reflecting improved sales and margin prospects—especially from cleaner U.S. channels, strong demand for key franchises, and better inventory management—though ongoing China, tariff, and macro risks temper the near-term outlook. Analyst Commentary Bullish analysts highlight improving sales and margins, citing accelerated inventory normalization, cleaner U.S. channels, rising holiday order books, and renewed retailer enthusiasm, particularly for Air Force One and Jordan Retro.
RCL
US$323.07
Royal Caribbean Cruises
7D
-5.4%
1Y
91.7%
ORLY
US$104.55
O'Reilly Automotive
7D
-3.0%
1Y
40.6%

Inventory Improvements And Store Expansions Will Boost Retail Presence

O’Reilly Automotive’s consensus price target saw a modest upward revision, as analysts point to strong EPS growth, consistent profitability, robust Q2 comps and margins, supply chain execution, and successful cost pass-throughs as key drivers, with the fair value estimate rising slightly from $106.95 to $107.55. Analyst Commentary Bullish analysts cite continued strong EPS growth projections (9%-10% over two years) and a consistent track record of profitability and technical outperformance.
TSLA
US$425.86
Tesla
7D
15.5%
1Y
74.6%
FLUT
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Flutter Entertainment
7D
-4.2%
1Y
21.8%
AMZN
US$231.62
Amazon.com
7D
0.6%
1Y
24.2%

Cloud Transition And AI Adoption Will Drive Long Term Expansion

Analysts modestly raised Amazon's price target—now $263.74—citing improving AWS demand visibility, growth potential from aggressive grocery expansion and logistics, and stronger Prime ecosystem engagement, while noting lingering concerns over operational complexity and recent AWS margin trends. Analyst Commentary Bullish analysts are raising targets on expectations that Amazon’s aggressive expansion and integration into the grocery sector—especially fresh/perishable delivery with minimum $25 baskets—will drive durable, faster growth, higher merchandise margins, meaningful EBIT/EPS upside, deeper Prime ecosystem engagement, and significant market share gains in a massive ($1–2T+) market.
NIO
US$7.45
NIO
7D
30.2%
1Y
48.4%
BABA
US$166.17
Alibaba Group Holding
7D
15.5%
1Y
96.8%

AI, Cloud And Quick Commerce Will Power Digital Progress

Analysts have raised Alibaba’s price target to $165.48, citing accelerating cloud and AI-driven revenue growth, improved execution and synergies in quick commerce, margin expansion, and diversification into new verticals, all underpinning stronger long-term fundamentals. Analyst Commentary Bullish analysts cite accelerating cloud revenue growth, particularly with robust AI-related and external revenue contributions, solidifying Alibaba’s position as China’s leading GenAI and cloud infrastructure provider.
DHI
US$169.98
D.R. Horton
7D
-3.5%
1Y
-12.5%
MAR
US$262.05
Marriott International
7D
-2.2%
1Y
7.2%

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SE
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Sea
7D
-3.2%
1Y
126.8%

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Sep 05
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MELI
US$2,446.32
MercadoLibre
7D
4.1%
1Y
16.3%

Digital Retail And MercadoPago Adoption Will Fuel Future Markets

Analysts have raised MercadoLibre’s price target to $2,876, reflecting confidence in its aggressive push into Brazil’s low-ASP e-commerce segment despite rising competition, driven by strong Q2 execution and potential for share gains among value-focused consumers. Analyst Commentary MercadoLibre is aggressively targeting the lower average selling price (ASP) segment in Brazil, including a significant lowering of the free shipping threshold and large-scale promotional campaigns, to directly compete with Shopee, Temu, and TikTok Shop.
PDD
US$134.86
PDD Holdings
7D
7.3%
1Y
34.9%
TCOM
US$76.79
Trip.com Group
7D
5.9%
1Y
64.4%

Promoting Inbound Travel And Rural Revitalization In China Will Support Sustainable Long-Term Growth

The consensus Analyst Price Target for Trip.com Group has risen to $79.15, primarily reflecting a sharp decline in the company’s future P/E ratio, while revenue growth expectations remain stable. What's in the News Completed repurchase of 7,000,000 shares (1.06%) for $400 million under the buyback announced in February 2025.
HLT
US$266.41
Hilton Worldwide Holdings
7D
-2.4%
1Y
20.6%