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U.S. Consumer Discretionary Sector Analysis

UpdatedJul 13, 2026
DataAggregated Company Financials
Companies778
  • 7D-0.05%
  • 3M1.3%
  • 1Y5.1%
  • YTD-2.4%

The Consumer Discretionary is pretty flat in the last 7 days, but Alibaba Group Holding has stood out, gaining 15%. As for the the longer term, the industry is up 5.1% over the past 12 months. Looking forward, earnings are forecast to grow by 21% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 14 Jul 2026US$7.6tUS$3.7tUS$215.1b18.7x35.4x2.1x
Thu, 11 Jun 2026US$7.5tUS$3.7tUS$214.6b18.5x34.9x2x
Sat, 09 May 2026US$7.9tUS$3.7tUS$208.9b18.9x37.9x2.2x
Mon, 06 Apr 2026US$6.9tUS$3.6tUS$198.2b18.7x35x1.9x
Wed, 04 Mar 2026US$7.3tUS$3.6tUS$205.2b19.8x35.6x2x
Fri, 30 Jan 2026US$7.7tUS$3.6tUS$218.5b19.3x35.5x2.2x
Sun, 28 Dec 2025US$7.8tUS$3.6tUS$221.4b19.2x35.4x2.2x
Tue, 25 Nov 2025US$7.3tUS$3.6tUS$225.1b17.9x32.2x2x
Thu, 23 Oct 2025US$7.7tUS$3.5tUS$218.9b18.6x35.2x2.2x
Sat, 20 Sep 2025US$7.8tUS$3.5tUS$221.3b19.5x35.4x2.3x
Mon, 18 Aug 2025US$7.2tUS$3.5tUS$217.2b19.7x33.1x2.1x
Wed, 16 Jul 2025US$7.0tUS$3.4tUS$215.7b18.4x32.4x2x
Fri, 13 Jun 2025US$6.8tUS$3.4tUS$217.6b17.4x31.1x2x
Sun, 11 May 2025US$6.4tUS$3.4tUS$218.4b17.1x29.1x1.9x
Tue, 08 Apr 2025US$5.6tUS$3.4tUS$211.7b14.9x26.6x1.7x
Thu, 06 Mar 2025US$6.6tUS$3.4tUS$212.8b17.7x30.8x1.9x
Sat, 01 Feb 2025US$7.4tUS$3.3tUS$193.4b19x38.3x2.2x
Mon, 30 Dec 2024US$7.2tUS$3.3tUS$200.9b18.2x35.8x2.2x
Wed, 27 Nov 2024US$6.8tUS$3.4tUS$199.9b19x34.1x2x
Fri, 25 Oct 2024US$5.7tUS$3.2tUS$179.1b18x31.8x1.8x
Sun, 22 Sep 2024US$5.8tUS$3.2tUS$177.7b17.8x32.6x1.8x
Tue, 20 Aug 2024US$5.5tUS$3.2tUS$172.7b17.3x31.9x1.7x
Thu, 18 Jul 2024US$5.8tUS$3.1tUS$167.3b18.1x34.9x1.9x
Sat, 15 Jun 2024US$5.4tUS$3.1tUS$167.8b17.8x32.4x1.7x
Mon, 13 May 2024US$5.4tUS$3.1tUS$166.8b18.5x32.4x1.7x
Wed, 10 Apr 2024US$5.4tUS$3.1tUS$160.5b18.1x33.5x1.7x
Fri, 08 Mar 2024US$5.3tUS$3.1tUS$154.6b17.4x34.4x1.7x
Sun, 04 Feb 2024US$5.2tUS$3.1tUS$159.6b16.8x32.6x1.7x
Tue, 02 Jan 2024US$5.3tUS$3.1tUS$141.6b17.7x37.4x1.7x
Thu, 30 Nov 2023US$5.0tUS$3.1tUS$140.6b15.9x35.9x1.7x
Sat, 28 Oct 2023US$4.4tUS$3.0tUS$121.6b14.2x36.5x1.5x
Mon, 25 Sep 2023US$4.7tUS$3.0tUS$112.4b14.9x41.9x1.6x
Wed, 23 Aug 2023US$4.8tUS$3.0tUS$112.0b15.8x43.2x1.6x
Fri, 21 Jul 2023US$5.0tUS$2.9tUS$100.5b15.6x49.6x1.7x
Price to Earnings Ratio

49.6x


Total Market Cap: US$5.0tTotal Earnings: US$100.5bTotal Revenue: US$2.9tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Consumer Discretionary Sector Price to Earnings3Y Average 34.9x202420252026
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 34.9x.
  • 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 29% per year over the last three years.
  • Revenues for these companies have grown 8.2% 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 Market0.11%
Consumer Discretionary-0.052%
General Merchandise and Department Stores1.71%
Luxury0.81%
Hospitality0.47%
Online Retail and Ecommerce0%0
Leisure-0.16%
Specialty Stores-0.67%
Consumer Services-0.67%
Auto Components-0.79%
Retail Distributors-2.31%
Consumer Durables-2.68%
Auto-2.80%
Industry PE
  • Investors are most optimistic about the Retail Distributors industry which is trading above its 3-year average PE ratio of 20.0x.
    • Analysts are expecting annual earnings growth of 25.1%, which is higher than its past year's earnings decline of 19.0% 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 5.8% per year.
  • In contrast, the Consumer Durables industry is expected to see its earnings grow by 8.4% 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$247.311.3%
+US$33.9b		9.6%PE29.3x
BABA Alibaba Group HoldingUS$112.3514.7%
+US$32.8b		3.8%PE16.4x
SBUX StarbucksUS$107.345.1%
+US$6.0b		14.9%PE81.8x
SE SeaUS$110.665.4%
+US$3.5b		-26.8%PE42.3x
CMG Chipotle Mexican GrillUS$36.637.8%
+US$3.4b		-33.2%PE32.4x

Latest News

CMG
US$36.63
Chipotle Mexican Grill
7D
7.8%
1Y
-33.2%
Seeking Alpha • 6h

Chipotle: Patience Now, Payoff Once Spending Returns

Summary Chipotle Mexican Grill remains a dominant fast-casual player with robust revenue growth and premium margins. I maintain my Buy rating on CMG, despite recent underperformance and its premium valuation, as fundamentals remain strong. CMG trades at a 31x forward P/E—about a 97% premium to sector median—yet its fundamentals justify the multiple. Risks include potential margin erosion and weaker consumer spending if high interest rates persist, but no structural bull case concerns. Read the full article on Seeking Alpha
SBUX
US$107.34
Starbucks
7D
5.1%
1Y
14.9%
Seeking Alpha • 14h

Starbucks: Using AI To Cut Costs While Compounding Dividends And EPS

Summary Starbucks (SBUX) delivered Q2 revenue of $9.53B and 22% YoY EPS growth, confirming its turnaround and justifying a bullish outlook. SBUX raised FY2026 guidance, with global comps up 6.2%, margin expansion, and a robust 15-year dividend growth track record supporting its investment case. Operational improvements, a $2B cost savings program leveraging AI, and international expansion—especially in India and China—are key forward growth drivers. Despite a 44x FY2026 P/E and balance sheet risks, I see SBUX’s forward earnings growth and capital allocation as compelling for long-term investors. Read the full article on Seeking Alpha
LOW
US$207.70
Lowe's Companies
7D
-7.2%
1Y
-6.6%
TSLA
US$394.76
Tesla
7D
-6.0%
1Y
24.6%
Seeking Alpha • Jul 12

Tesla And The Emperor's New Clothes

Summary Tesla (TSLA) trades at a $1.5T valuation, yet its core auto business remains low-margin and capital-intensive, with free cash flow multiples exceeding 200x. TSLA's growth narrative is undermined by declining revenue, shrinking profit estimates, and surging capex, with 2026 capex guided above $20B—nearly double EBIT forecasts. Robotaxi and Optimus remain largely aspirational; tangible financial contribution and operational scale are absent, despite being central to the current valuation. Until autonomous and robotics initiatives deliver measurable cash flow and margins, TSLA's valuation is disconnected from its income statement reality. Read the full article on Seeking Alpha
AMZN
US$247.31
Amazon.com
7D
1.3%
1Y
9.6%
MELI
US$1,867.30
MercadoLibre
7D
3.4%
1Y
-21.6%
JD
US$28.88
JD.com
7D
7.8%
1Y
-6.2%
BABA
US$112.35
Alibaba Group Holding
7D
14.7%
1Y
3.8%
CVNA
US$64.99
Carvana
7D
-7.7%
1Y
-6.4%
BKNG
US$175.80
Booking Holdings
7D
-2.9%
1Y
-23.8%
HLT
US$322.45
Hilton Worldwide Holdings
7D
-5.0%
1Y
15.7%
ROST
US$219.46
Ross Stores
7D
3.8%
1Y
67.3%
Narrative Update • Jul 07

ROST: Strong Q1 Momentum And Value Model Will Face Tough Comparisons

The updated fair value estimate for Ross Stores moves higher by about $25 to $205, as analysts factor in a slightly lower discount rate, modestly softer revenue growth assumptions, and somewhat stronger profitability and future P/E expectations following a series of price target increases and supportive research commentary. Analyst Commentary Recent Street research on Ross Stores has been largely constructive, with several firms lifting price targets following a Q1 report that featured 17% comp sales growth versus an 8.6% consensus figure and stronger traffic trends.
MCD
US$272.61
McDonald's
7D
-2.5%
1Y
-9.7%
SE
US$110.66
Sea
7D
5.4%
1Y
-26.8%
MAR
US$362.91
Marriott International
7D
-4.4%
1Y
28.3%
Narrative Update • Jun 30

MAR: Expansion Into China And Saudi Arabia Will Drive Future Upside

Analysts have lifted their price target on Marriott International from $370 to $446, citing updated assumptions for revenue growth, profit margins, the discount rate, and future P/E that adjust their view of the stock's valuation profile. What's in the News Marriott International introduced the AI powered Ask Bonvoy tool in beta, using conversational search to help travelers find and book stays across its portfolio of more than 10,000 properties.
HD
US$337.11
Home Depot
7D
-3.9%
1Y
-8.9%