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U.S. Consumer Discretionary Sector Analysis

UpdatedJan 19, 2026
DataAggregated Company Financials
Companies803
  • 7D-2.2%
  • 3M2.0%
  • 1Y6.6%
  • YTD2.8%

Over the last 7 days, the Consumer Discretionary industry has dropped 2.2%, driven by Amazon.com declining 3.3%. On the other hand Alibaba Group Holding is actually up 9.6%. In the past year, the industry has gained 6.6%. 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
Mon, 19 Jan 2026US$7.8tUS$3.6tUS$221.6b19.4x35.3x2.2x
Wed, 17 Dec 2025US$7.7tUS$3.6tUS$221.9b19.2x34.8x2.2x
Fri, 14 Nov 2025US$7.8tUS$3.5tUS$223.7b18.4x34.7x2.2x
Sun, 12 Oct 2025US$7.4tUS$3.5tUS$220.8b17.9x33.5x2.1x
Tue, 09 Sep 2025US$7.5tUS$3.5tUS$221.7b19.8x33.9x2.2x
Thu, 07 Aug 2025US$6.9tUS$3.4tUS$218.7b18.7x31.7x2x
Sat, 05 Jul 2025US$7.0tUS$3.4tUS$216.1b19x32.2x2x
Mon, 02 Jun 2025US$6.7tUS$3.4tUS$217.6b16.9x30.8x2x
Wed, 30 Apr 2025US$6.1tUS$3.4tUS$210.7b16.7x29.1x1.8x
Fri, 28 Mar 2025US$6.4tUS$3.4tUS$211.7b17.1x30.4x1.9x
Sun, 23 Feb 2025US$7.1tUS$3.4tUS$211.9b18.7x33.4x2.1x
Tue, 21 Jan 2025US$7.2tUS$3.3tUS$201.9b18.9x35.8x2.2x
Thu, 19 Dec 2024US$7.5tUS$3.3tUS$200.9b18.2x37.4x2.2x
Sat, 16 Nov 2024US$6.7tUS$3.4tUS$195.5b18.3x34.4x2x
Mon, 14 Oct 2024US$5.9tUS$3.2tUS$178.6b18x32.9x1.8x
Wed, 11 Sep 2024US$5.4tUS$3.2tUS$177.8b16.7x30.3x1.7x
Fri, 09 Aug 2024US$5.1tUS$3.2tUS$172.7b16.7x29.4x1.6x
Sun, 07 Jul 2024US$5.7tUS$3.1tUS$167.3b17.1x34.4x1.8x
Tue, 04 Jun 2024US$5.4tUS$3.1tUS$167.6b18.3x32x1.7x
Thu, 02 May 2024US$5.3tUS$3.1tUS$167.2b17x31.5x1.7x
Sat, 30 Mar 2024US$5.4tUS$3.1tUS$160.3b18.2x33.8x1.8x
Mon, 26 Feb 2024US$5.3tUS$3.1tUS$153.1b17.6x34.9x1.7x
Wed, 24 Jan 2024US$5.1tUS$3.1tUS$141.5b17.2x35.9x1.7x
Fri, 22 Dec 2023US$5.3tUS$3.1tUS$141.0b17.5x37.3x1.7x
Sun, 19 Nov 2023US$4.9tUS$3.0tUS$138.2b15.6x35.4x1.6x
Tue, 17 Oct 2023US$4.7tUS$3.0tUS$114.0b15.1x41.7x1.6x
Thu, 14 Sep 2023US$5.0tUS$3.0tUS$112.8b15.1x44.7x1.7x
Sat, 12 Aug 2023US$5.0tUS$3.0tUS$112.7b16.1x44.3x1.7x
Mon, 10 Jul 2023US$4.9tUS$2.9tUS$99.8b15.1x49.4x1.7x
Wed, 07 Jun 2023US$4.6tUS$2.9tUS$98.9b14x46.8x1.6x
Fri, 05 May 2023US$4.2tUS$2.9tUS$95.6b13.9x44.3x1.4x
Sun, 02 Apr 2023US$4.5tUS$2.9tUS$81.5b13.6x55.4x1.6x
Tue, 28 Feb 2023US$4.5tUS$3.1tUS$86.3b13.5x52.6x1.5x
Thu, 26 Jan 2023US$4.6tUS$3.0tUS$107.9b12.8x42.4x1.5x
Price to Earnings Ratio

42.4x


Total Market Cap: US$4.6tTotal Earnings: US$107.9bTotal 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 27% 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-0.29%
Consumer Discretionary-2.23%
Retail Distributors4.30%
Leisure0.96%
Consumer Durables0.59%
Specialty Stores0.025%
Online Retail and Ecommerce0%0
Auto-1.90%
General Merchandise and Department Stores-2.65%
Auto Components-2.73%
Consumer Services-2.89%
Luxury-2.94%
Hospitality-4.91%
Industry PE
  • Investors are most optimistic about the Auto industry which is trading above its 3-year average PE ratio of 118x.
    • Analysts are expecting annual earnings growth of 33.2%, 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 7.7% 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
BABA Alibaba Group HoldingUS$165.409.6%
+US$32.3b		94.3%PE20.5x
LOW Lowe's CompaniesUS$277.553.9%
+US$5.8b		6.3%PE23x
HD Home DepotUS$380.171.5%
+US$5.5b		-7.1%PE26x
SBUX StarbucksUS$92.994.6%
+US$4.7b		-2.2%PE57x
AZO AutoZoneUS$3.52k2.9%
+US$1.7b		9.1%PE23.7x

Latest News

AZO
US$3,522.02
AutoZone
7D
2.9%
1Y
9.1%
WSM
US$211.51
Williams-Sonoma
7D
6.3%
1Y
4.3%
DRI
US$214.62
Darden Restaurants
7D
6.1%
1Y
18.1%
AMZN
US$239.12
Amazon.com
7D
-3.3%
1Y
5.8%
SBUX
US$92.99
Starbucks
7D
4.6%
1Y
-2.2%
TCOM
US$61.77
Trip.com Group
7D
-18.4%
1Y
-8.0%
BABA
US$165.40
Alibaba Group Holding
7D
9.6%
1Y
94.3%
LOW
US$277.55
Lowe's Companies
7D
3.9%
1Y
6.3%
YUM
US$160.26
Yum! Brands
7D
3.0%
1Y
27.9%

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.
SE
US$121.42
Sea
7D
-9.1%
1Y
5.5%

SE: Future Share Gains Will Stem From Fintech And Share Repurchase Program

Analysts have nudged their fair value estimate for Sea slightly lower to about US$191 from roughly US$192, citing recent Street research that highlights segment wide revenue strength, ongoing growth investments, and a mix of higher and lower price targets across firms following the Q3 report. Analyst Commentary Street research around the Q3 print is fairly constructive, but with different views on how much upside is left relative to current pricing and execution risks.
BKNG
US$5,115.91
Booking Holdings
7D
-6.8%
1Y
3.8%
RCL
US$276.01
Royal Caribbean Cruises
7D
-11.4%
1Y
14.1%

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$106.76
PDD Holdings
7D
-11.4%
1Y
1.1%

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.
HD
US$380.17
Home Depot
7D
1.5%
1Y
-7.1%

HD: Ongoing Investments And Wholesale Expansion Will Support Post Headwind Share Gains

Analysts have trimmed their Home Depot price targets, with cuts such as US$455 to US$430 and US$475 to US$430, reflecting softer near term demand, recent earnings misses, and the expected impact of lower margin wholesale mix. They still see the company well positioned for a future housing recovery and share gains when conditions improve.
MELI
US$2,075.01
MercadoLibre
7D
-4.7%
1Y
13.0%

MELI: Rising Brazil Competition And Fair Valuation Will Shape Future Profit Margins

Analysts have trimmed their blended price target for MercadoLibre by about $7 per share. This reflects slightly softer revenue growth assumptions and higher discount rates, partly offset by expectations for stronger profit margins and a lower future P/E multiple in light of recent target moves from Barclays, UBS and JPMorgan.
TSLA
US$437.50
Tesla
7D
-1.7%
1Y
2.6%

TSLA: AI And Robotics Ambitions Will Reshape Long-Term Equity Story

Analysts have raised their Tesla fair value estimate from $500 to $600. They point to updated assumptions for higher revenue growth, wider profit margins, and a lower future P/E multiple, even as recent research still highlights risks around delivery trends, spending plans, and governance.