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U.S. Consumer Discretionary Sector Analysis

UpdatedMar 16, 2026
DataAggregated Company Financials
Companies795
  • 7D-2.6%
  • 3M-10.7%
  • 1Y9.3%
  • YTD-9.5%

Over the last 7 days, the Consumer Discretionary industry has dropped 2.6%, driven by a pullback from Amazon.com of 0.8%. In the past year, the industry has gained 9.3%. 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 Mar 2026US$7.1tUS$3.6tUS$204.2b18.6x34.6x2x
Thu, 12 Feb 2026US$7.6tUS$3.6tUS$205.5b20.2x36.9x2.1x
Sat, 10 Jan 2026US$7.9tUS$3.6tUS$221.6b19.1x35.9x2.2x
Mon, 08 Dec 2025US$7.7tUS$3.6tUS$221.9b18.7x34.7x2.2x
Wed, 05 Nov 2025US$7.9tUS$3.5tUS$225.7b18.2x35.2x2.3x
Fri, 03 Oct 2025US$7.9tUS$3.5tUS$220.8b19.7x35.6x2.3x
Sun, 31 Aug 2025US$7.3tUS$3.5tUS$220.7b20.2x33x2.1x
Tue, 29 Jul 2025US$7.1tUS$3.4tUS$212.9b18.8x33.4x2.1x
Thu, 26 Jun 2025US$6.8tUS$3.4tUS$217.4b17.8x31.4x2x
Sat, 24 May 2025US$6.7tUS$3.4tUS$220.3b16.9x30.4x2x
Mon, 21 Apr 2025US$5.7tUS$3.4tUS$211.8b15.7x26.9x1.7x
Wed, 19 Mar 2025US$6.2tUS$3.4tUS$212.7b16.7x29.3x1.8x
Fri, 14 Feb 2025US$7.1tUS$3.4tUS$203.4b18.9x35x2.1x
Sun, 12 Jan 2025US$6.9tUS$3.3tUS$200.2b18x34.6x2.1x
Tue, 10 Dec 2024US$7.3tUS$3.3tUS$201.1b19.4x36.1x2.2x
Thu, 07 Nov 2024US$6.0tUS$3.2tUS$181.8b18.5x33.1x1.9x
Sat, 05 Oct 2024US$5.9tUS$3.2tUS$178.6b18.4x32.8x1.8x
Mon, 02 Sep 2024US$5.5tUS$3.2tUS$177.3b17.7x31x1.7x
Wed, 31 Jul 2024US$5.5tUS$3.1tUS$167.7b17.5x33x1.8x
Fri, 28 Jun 2024US$5.6tUS$3.1tUS$166.7b17.4x33.4x1.8x
Sun, 26 May 2024US$5.4tUS$3.1tUS$167.8b18.1x32.1x1.7x
Tue, 23 Apr 2024US$5.0tUS$3.1tUS$160.7b16.8x31.3x1.6x
Thu, 21 Mar 2024US$5.3tUS$3.1tUS$159.2b17.3x33.4x1.7x
Sat, 17 Feb 2024US$5.3tUS$3.1tUS$151.8b18.1x35x1.7x
Mon, 15 Jan 2024US$5.1tUS$3.1tUS$141.5b17.3x36.3x1.7x
Wed, 13 Dec 2023US$5.1tUS$3.1tUS$139.2b16.7x36.8x1.7x
Fri, 10 Nov 2023US$4.8tUS$3.0tUS$130.2b14.8x36.7x1.6x
Sun, 08 Oct 2023US$4.7tUS$3.0tUS$113.8b15x41.4x1.6x
Tue, 05 Sep 2023US$5.0tUS$3.0tUS$112.1b16.1x44.7x1.7x
Thu, 03 Aug 2023US$5.0tUS$2.9tUS$105.2b15.8x47.2x1.7x
Sat, 01 Jul 2023US$4.9tUS$2.9tUS$99.8b14.9x49x1.7x
Mon, 29 May 2023US$4.4tUS$2.9tUS$99.5b13.6x43.9x1.5x
Wed, 26 Apr 2023US$4.2tUS$2.9tUS$79.3b13.4x53.1x1.4x
Fri, 24 Mar 2023US$4.3tUS$2.9tUS$80.7b13.1x52.8x1.5x
Price to Earnings Ratio

52.8x


Total Market Cap: US$4.3tTotal Earnings: US$80.7bTotal Revenue: US$2.9tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Consumer Discretionary Sector Price to Earnings3Y Average 36.2x202420252026
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 36.2x.
  • The industry is trading close to its 3-year average PS ratio of 1.9x.
Past Earnings Growth
  • The earnings for companies in the Consumer Discretionary industry have grown 36% per year over the last three years.
  • Revenues for these companies have grown 7.6% 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 Market-2.40%
Consumer Discretionary-2.62%
Online Retail and Ecommerce0%0
Consumer Services-0.93%
Auto-1.39%
General Merchandise and Department Stores-2.01%
Leisure-3.06%
Hospitality-3.97%
Auto Components-4.07%
Specialty Stores-4.20%
Luxury-4.70%
Consumer Durables-5.13%
Retail Distributors-5.31%
Industry PE
  • Investors are most optimistic about the Luxury industry which is trading above its 3-year average PE ratio of 28.6x.
    • Analysts are expecting annual earnings growth of 18.3%, which is higher than its past year's earnings decline of 11.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Auto industry, expecting annual earnings growth of 35% over the next 5 years.
  • This is better than its past earnings decline of 47% per year.
  • In contrast, the Consumer Durables industry is expected to see its earnings grow by 7.2% 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
BABA Alibaba Group HoldingUS$136.713.1%
+US$9.1b		-7.4%PE16.8x
CPNG CoupangUS$20.458.7%
+US$3.0b		-13.1%PE179.7x
NIO NIOUS$6.0322.1%
+US$2.8b		19.9%PS1.2x
PDD PDD HoldingsUS$103.841.2%
+US$1.7b		-19.4%PE9.9x
XPEV XPengUS$20.098.9%
+US$1.6b		-18.2%PS1.9x

Latest News

JD
US$28.49
JD.com
7D
3.7%
1Y
-37.0%
ULTA
US$516.74
Ulta Beauty
7D
-19.5%
1Y
44.7%
NIO
US$6.03
NIO
7D
22.1%
1Y
19.9%
LOW
US$242.11
Lowe's Companies
7D
-3.2%
1Y
7.2%

LOW: Housing And AI Adoption Will Support Home Improvement Recovery

The analyst price target for Lowe's Companies edges up to $286.48 from $286.13 as analysts factor in slightly lower modeled revenue growth and profit margins, along with a modestly higher assumed discount rate and future P/E. Analyst Commentary Recent research updates around Lowe's cluster around the same Q4 earnings print and FY26 outlook, but they split into two clear camps.
BABA
US$136.71
Alibaba Group Holding
7D
3.1%
1Y
-7.4%

BABA: AI Cloud And Chip Investments Will Support Long Term Upside

The analyst price target for Alibaba Group Holding has inched higher to $199.61 from $198.28, with analysts pointing to Alibaba's focus on AI driven cloud monetization, its inclusion on a major APAC conviction list, and ongoing debates around margins and capital intensity as key factors shaping their updated view. Analyst Commentary Recent research on Alibaba highlights a split view, with some firms adding the stock to high conviction lists while others move to more cautious ratings.
AMZN
US$211.74
Amazon.com
7D
-0.8%
1Y
8.2%

AMZN: AI Cloud Partnerships Will Support Future Cash Flow Resilience

Analysts have made a minor reduction to their Amazon.com price target, reflecting slightly higher discount rates. They continue to point to ongoing support from AWS-focused research, AI-related capital expenditure commentary, and views that Amazon's e-commerce and advertising businesses remain relatively well positioned against AI disintermediation risks.
TSLA
US$395.56
Tesla
7D
-0.8%
1Y
66.2%

Tesla will achieve a 392% PE ratio increase according to recent forecasts

Tesla (TSLA) Investment Narrative Tesla is one of the most prominent companies in the global transition toward electric vehicles and sustainable energy. The company designs and manufactures electric vehicles, battery storage systems, and solar energy products.
CAVA
US$87.25
CAVA Group
7D
6.6%
1Y
11.0%

CAVA: Rich Earnings Multiples Will Test Sustained Same Store Sales Momentum

The CAVA Group analyst fair value estimate has been adjusted from $72.00 to $65.60 as analysts balance higher projected revenue growth and profit margins against a lower future P/E assumption and continued discussion of rich valuation multiples in recent research. Analyst Commentary Recent research on CAVA Group highlights a split view.
BKNG
US$4,293.02
Booking Holdings
7D
-3.3%
1Y
-5.9%

BKNG: AI Relief And Solid Travel Demand Will Support Future Cash Generation

Our updated analyst price target for Booking Holdings edges slightly lower to $5,816 from $5,874 as analysts factor in a modestly lower fair value and P/E, alongside slightly higher revenue growth and profit margin expectations. This outlook is supported by research that highlights resilient OTA fundamentals and easing AI disintermediation concerns following the reported ChatGPT checkout pivot.
HD
US$342.58
Home Depot
7D
-3.1%
1Y
-3.3%

HD: Pro Ecosystem And AI Tools Will Support Post Storm Demand Recovery

Our Home Depot fair value estimate increases from $398.00 to about $410.27, reflecting analysts' higher price targets following Q4 results and updated models that point to steadier home improvement trends and slightly stronger profitability assumptions. Analyst Commentary Bullish analysts have generally raised their price targets for Home Depot following Q4 results, pointing to stable execution, resilience in home improvement demand and an outlook they view as supportive of higher valuations.
XPEV
US$20.09
XPeng
7D
8.9%
1Y
-18.2%

XPEV: Global Expansion And AI Vehicle Rollout Will Test Execution And Pricing

XPeng's analyst fair value estimate has inched down by about $0.03 to $17.02, as analysts factor in a series of reduced price targets from several firms alongside mixed views on growth, margins, and upcoming guidance, partially balanced by at least one more optimistic upgrade. Analyst Commentary Recent research has tilted more cautious, with several bearish analysts trimming their price targets on XPeng as they reassess the balance between execution risks and the current valuation.
PDD
US$103.84
PDD Holdings
7D
1.2%
1Y
-19.4%

PDD: Future Returns Will Hinge On Managing Rising Regulatory And Policy Risks

Analysts have modestly lifted their PDD Holdings fair value estimate to about $119, citing updated assumptions around revenue growth, profit margins and future P/E expectations, even as recent research includes both price target increases and reductions across the Street. Analyst Commentary Recent research on PDD Holdings reflects a mix of optimism and caution, with some firms lifting fair value and others pulling back on previous enthusiasm.
DRI
US$206.69
Darden Restaurants
7D
2.5%
1Y
10.2%

DRI: Value Discipline And Brand Reshaping Will Support Long-Term Upside

Darden Restaurants' analyst price target has inched slightly higher to $235, with analysts citing the company's value discipline, recent rating upgrades and ongoing sector headwinds that have kept expectations relatively contained. Analyst Commentary Recent research on Darden Restaurants shows a split tape, but there is still a core group of bullish analysts leaning into the story with higher targets and upgrade calls that emphasize value discipline and execution in a tougher restaurant backdrop.
CPNG
US$20.45
Coupang
7D
8.7%
1Y
-13.1%
DASH
US$167.78
DoorDash
7D
-5.0%
1Y
-11.6%

DASH: Offensive Global Commerce Investments And AI Integrations Will Drive Future Upside

Analysts have trimmed their DoorDash fair value estimate from $274.69 to $260.90, citing lower projected revenue growth and profit margins, slightly higher discount rates, and a richer assumed future P/E that have filtered through updated models following recent price target resets across the Street. Analyst Commentary Street research on DoorDash is mixed, with many firms trimming price targets while keeping positive ratings, and a smaller group leaning more cautious.
ORLY
US$90.46
O'Reilly Automotive
7D
-4.4%
1Y
0.7%

ORLY: Store Expansion And Buybacks Will Support Attractive Future Risk Reward

Narrative Update on O'Reilly Automotive The analyst price target for O'Reilly Automotive has been trimmed by a few dollars, reflecting a modest reset in valuation multiples such as future P/E following recent research updates from several firms. However, underlying fair value inputs like growth and margins remain essentially unchanged.