U.S. Consumer Discretionary Sector Analysis
UpdatedFeb 06, 2023
DataAggregated Company Financials
Companies876
- 7D1.1%
- 3M16.8%
- 1Y-20.3%
- YTD21.8%
Over the last 7 days, the Consumer Discretionary industry has risen 1.1%, driven by gains from Tesla of 6.8%. During this same period, the Alibaba Group Holding underperformed, falling 10%. However, the industry is down 20% over the past year. As for the next few years, earnings are expected to grow by 25% per annum.
Sector Valuation and Performance
Has the U.S. Consumer Discretionary Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 06 Feb 2023 | US$4.9t | US$3.1t | US$86.1b | 13.6x | 56.4x | 1.6x |
| Wed, 04 Jan 2023 | US$4.0t | US$3.0t | US$108.5b | 11.8x | 36.8x | 1.3x |
| Fri, 02 Dec 2022 | US$4.5t | US$3.0t | US$108.3b | 11.7x | 41.6x | 1.5x |
| Sun, 30 Oct 2022 | US$4.4t | US$3.0t | US$111.6b | 11.1x | 39.3x | 1.5x |
| Tue, 27 Sep 2022 | US$4.6t | US$3.0t | US$111.0b | 10.6x | 41.3x | 1.5x |
| Thu, 25 Aug 2022 | US$4.6t | US$3.0t | US$111.9b | 11.5x | 41x | 1.5x |
| Sat, 23 Jul 2022 | US$5.0t | US$2.9t | US$120.8b | 11.5x | 41.5x | 1.7x |
| Mon, 20 Jun 2022 | US$4.4t | US$2.9t | US$119.6b | 10.7x | 36.9x | 1.5x |
| Wed, 18 May 2022 | US$4.7t | US$2.9t | US$121.1b | 11.8x | 38.4x | 1.6x |
| Fri, 15 Apr 2022 | US$5.8t | US$2.9t | US$135.3b | 12.4x | 42.8x | 2x |
| Sun, 13 Mar 2022 | US$5.3t | US$2.8t | US$131.1b | 13.1x | 40.7x | 1.9x |
| Tue, 08 Feb 2022 | US$6.0t | US$2.8t | US$126.2b | 14.3x | 47.2x | 2.1x |
| Thu, 06 Jan 2022 | US$6.8t | US$2.8t | US$117.2b | 15.7x | 57.6x | 2.5x |
| Sat, 04 Dec 2021 | US$6.6t | US$2.7t | US$117.5b | 15.4x | 56x | 2.4x |
| Mon, 01 Nov 2021 | US$6.9t | US$2.7t | US$121.5b | 16.3x | 56.8x | 2.6x |
| Wed, 29 Sep 2021 | US$6.4t | US$2.6t | US$123.2b | 17.3x | 51.6x | 2.4x |
| Fri, 27 Aug 2021 | US$6.4t | US$2.6t | US$120.3b | 16.3x | 52.9x | 2.4x |
| Sat, 03 Jul 2021 | US$6.6t | US$2.6t | US$115.1b | 17.8x | 57.3x | 2.6x |
| Tue, 06 Apr 2021 | US$6.2t | US$2.3t | US$66.1b | 20.4x | 93.2x | 2.7x |
| Fri, 08 Jan 2021 | US$6.2t | US$2.3t | US$47.4b | 19.5x | 130.4x | 2.7x |
| Thu, 01 Oct 2020 | US$5.2t | US$2.2t | US$50.9b | 19.4x | 102.4x | 2.4x |
| Sun, 05 Jul 2020 | US$4.1t | US$2.1t | US$51.6b | 21.1x | 78.5x | 2x |
| Wed, 08 Apr 2020 | US$3.0t | US$2.2t | US$84.3b | 10.9x | 35.2x | 1.3x |
Price to Earnings Ratio
30.4x
Current Industry PE
- Investors are pessimistic on the American Consumer Discretionary industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 56.4x which is lower than its 3-year average PE of 66.2x.
- The 3-year average PS ratio of 2.1x is higher than the industry's current PS ratio of 1.6x.
Past Earnings Growth
- The earnings for companies in the Consumer Discretionary industry have declined 8.6% per year over the last three years.
- Meanwhile revenues for these companies have grown 11% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the U.S. Consumer Discretionary sector?
| US Market | 1.73% | |
| Consumer Discretionary | 1.10% | |
| Auto Components | 7.69% | |
| Leisure | 7.42% | |
| Auto | 4.83% | |
| Consumer Durables | 4.53% | |
| Specialty Stores | 3.52% | |
| General Merchanise and Department Stores | 2.35% | |
| Consumer Services | 1.45% | |
| Retail Distributors | 1.38% | |
| Hospitality | 1.06% | |
| Luxury | 0.81% | |
| Online Retail and Ecommerce | -2.32% | |
Industry PE
- Investors are most optimistic about the Hospitality industry which is trading above its 3-year average PE ratio of 72.1x.
- Analysts expect its future annual earnings growth (27.0%) to be largely in line with prior year's earnings growth.
Forecasted Growth
- Analysts are most optimistic on the Online Retail and Ecommerce industry, expecting annual earnings growth of 37% over the next 5 years.
- This is better than its past earnings decline of 65% per year.
- In contrast, the Consumer Durables industry is expected to see its earnings decline by 4.6% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| TSLA Tesla | US$189.98 | 14.0% +US$74.8b | -37.2% | PE47.8x | |
| AMZN Amazon.com | US$103.39 | 2.8% +US$33.7b | -34.5% | PS2.1x | |
| HD Home Depot | US$331.50 | 5.5% +US$17.6b | -7.2% | PE19.8x | |
| LOW Lowe's Companies | US$215.97 | 7.0% +US$8.5b | -4.9% | PE19.6x | |
| ABNB Airbnb | US$118.70 | 8.4% +US$5.8b | -24.8% | PE46.1x |
