Header cover image

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?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 06 Feb 2023US$4.9tUS$3.1tUS$86.1b13.6x56.4x1.6x
Wed, 04 Jan 2023US$4.0tUS$3.0tUS$108.5b11.8x36.8x1.3x
Fri, 02 Dec 2022US$4.5tUS$3.0tUS$108.3b11.7x41.6x1.5x
Sun, 30 Oct 2022US$4.4tUS$3.0tUS$111.6b11.1x39.3x1.5x
Tue, 27 Sep 2022US$4.6tUS$3.0tUS$111.0b10.6x41.3x1.5x
Thu, 25 Aug 2022US$4.6tUS$3.0tUS$111.9b11.5x41x1.5x
Sat, 23 Jul 2022US$5.0tUS$2.9tUS$120.8b11.5x41.5x1.7x
Mon, 20 Jun 2022US$4.4tUS$2.9tUS$119.6b10.7x36.9x1.5x
Wed, 18 May 2022US$4.7tUS$2.9tUS$121.1b11.8x38.4x1.6x
Fri, 15 Apr 2022US$5.8tUS$2.9tUS$135.3b12.4x42.8x2x
Sun, 13 Mar 2022US$5.3tUS$2.8tUS$131.1b13.1x40.7x1.9x
Tue, 08 Feb 2022US$6.0tUS$2.8tUS$126.2b14.3x47.2x2.1x
Thu, 06 Jan 2022US$6.8tUS$2.8tUS$117.2b15.7x57.6x2.5x
Sat, 04 Dec 2021US$6.6tUS$2.7tUS$117.5b15.4x56x2.4x
Mon, 01 Nov 2021US$6.9tUS$2.7tUS$121.5b16.3x56.8x2.6x
Wed, 29 Sep 2021US$6.4tUS$2.6tUS$123.2b17.3x51.6x2.4x
Fri, 27 Aug 2021US$6.4tUS$2.6tUS$120.3b16.3x52.9x2.4x
Sat, 03 Jul 2021US$6.6tUS$2.6tUS$115.1b17.8x57.3x2.6x
Tue, 06 Apr 2021US$6.2tUS$2.3tUS$66.1b20.4x93.2x2.7x
Fri, 08 Jan 2021US$6.2tUS$2.3tUS$47.4b19.5x130.4x2.7x
Thu, 01 Oct 2020US$5.2tUS$2.2tUS$50.9b19.4x102.4x2.4x
Sun, 05 Jul 2020US$4.1tUS$2.1tUS$51.6b21.1x78.5x2x
Wed, 08 Apr 2020US$3.0tUS$2.2tUS$84.3b10.9x35.2x1.3x
Price to Earnings Ratio

30.4x


Total Market Cap: US$3.4tTotal Earnings: US$112.8bTotal Revenue: US$2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Consumer Discretionary Sector Price to Earnings3Y Average 66.2x202120222023
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 Market1.73%
Consumer Discretionary1.10%
Auto Components7.69%
Leisure7.42%
Auto4.83%
Consumer Durables4.53%
Specialty Stores3.52%
General Merchanise and Department Stores2.35%
Consumer Services1.45%
Retail Distributors1.38%
Hospitality1.06%
Luxury0.81%
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?

CompanyLast Price7D1YValuation
TSLA TeslaUS$189.9814.0%
+US$74.8b
-37.2%PE47.8x
AMZN Amazon.comUS$103.392.8%
+US$33.7b
-34.5%PS2.1x
HD Home DepotUS$331.505.5%
+US$17.6b
-7.2%PE19.8x
LOW Lowe's CompaniesUS$215.977.0%
+US$8.5b
-4.9%PE19.6x
ABNB AirbnbUS$118.708.4%
+US$5.8b
-24.8%PE46.1x
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Latest News

CMG

US$1,692.97

Chipotle Mexican Grill

7D

5.2%

1Y

16.5%

LCID

US$11.62

Lucid Group

7D

-9.7%

1Y

-57.8%

SBUX

US$104.30

Starbucks

7D

-4.3%

1Y

9.8%

MCD

US$264.23

McDonald's

7D

-3.0%

1Y

1.6%

LOW

US$215.97

Lowe's Companies

7D

6.7%

1Y

-5.7%

AMZN

US$103.39

Amazon.com

7D

1.1%

1Y

-34.4%

GM

US$41.13

General Motors

7D

8.4%

1Y

-19.8%

PDD

US$95.65

Pinduoduo

7D

-8.6%

1Y

71.3%

MBLY

US$42.78

Mobileye Global

7D

19.5%

1Y

n/a

TSLA

US$189.98

Tesla

7D

6.8%

1Y

-38.3%