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U.S. Consumer Discretionary Sector Analysis

UpdatedJul 29, 2026
DataAggregated Company Financials
Companies770
  • 7D-4.5%
  • 3M-6.8%
  • 1Y-2.7%
  • YTD-8.3%

Over the last 7 days, the Consumer Discretionary industry has dropped 4.5%, driven by pullbacks in Tesla and Amazon.com of 18% and 6.7%, respectively. Meanwhile, Booking Holdings actually outperformed within the industry, gaining 11% in the last week. Over the last year, the industry has been flat overall. Looking forward, 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
Wed, 29 Jul 2026US$7.1tUS$3.7tUS$212.5b19.4x33.6x1.9x
Fri, 26 Jun 2026US$7.3tUS$3.7tUS$214.0b18.3x34.2x2x
Sun, 24 May 2026US$7.8tUS$3.7tUS$212.3b18.4x36.8x2.1x
Tue, 21 Apr 2026US$7.8tUS$3.6tUS$198.2b20.1x39.5x2.1x
Thu, 19 Mar 2026US$7.2tUS$3.6tUS$204.1b18.5x35.4x2x
Sat, 14 Feb 2026US$7.4tUS$3.6tUS$205.5b20.2x36x2.1x
Mon, 12 Jan 2026US$8.0tUS$3.6tUS$221.6b19.1x36.1x2.3x
Wed, 10 Dec 2025US$7.6tUS$3.6tUS$222.0b18.8x34.4x2.1x
Fri, 07 Nov 2025US$7.9tUS$3.5tUS$223.0b17.9x35.6x2.2x
Sun, 05 Oct 2025US$7.8tUS$3.5tUS$220.9b19.5x35.1x2.2x
Tue, 02 Sep 2025US$7.3tUS$3.5tUS$220.7b20.2x33x2.1x
Thu, 31 Jul 2025US$7.1tUS$3.4tUS$213.0b18.3x33.2x2.1x
Sat, 28 Jun 2025US$6.8tUS$3.4tUS$216.2b18x31.5x2x
Mon, 26 May 2025US$6.6tUS$3.4tUS$220.2b16.9x30.2x1.9x
Wed, 23 Apr 2025US$5.5tUS$3.4tUS$211.4b15.9x26.2x1.6x
Fri, 21 Mar 2025US$6.2tUS$3.4tUS$212.4b17.3x29.4x1.8x
Sun, 16 Feb 2025US$7.3tUS$3.4tUS$205.0b18.6x35.5x2.2x
Tue, 14 Jan 2025US$6.9tUS$3.3tUS$200.7b18.2x34.6x2.1x
Thu, 12 Dec 2024US$7.3tUS$3.3tUS$201.1b19.5x36.1x2.2x
Sat, 09 Nov 2024US$6.3tUS$3.2tUS$181.0b18.9x35x2x
Mon, 07 Oct 2024US$6.0tUS$3.2tUS$178.6b18.4x33.4x1.9x
Wed, 04 Sep 2024US$5.5tUS$3.2tUS$177.2b17.3x31x1.7x
Fri, 02 Aug 2024US$5.6tUS$3.1tUS$166.7b17.4x33.6x1.8x
Sun, 30 Jun 2024US$5.5tUS$3.1tUS$167.2b17.5x33x1.8x
Tue, 28 May 2024US$5.4tUS$3.1tUS$167.8b17.9x32.1x1.7x
Thu, 25 Apr 2024US$5.2tUS$3.1tUS$160.0b17.1x32.3x1.7x
Sat, 23 Mar 2024US$5.4tUS$3.1tUS$159.5b17.5x33.6x1.7x
Mon, 19 Feb 2024US$5.3tUS$3.1tUS$152.0b18.1x34.8x1.7x
Wed, 17 Jan 2024US$5.1tUS$3.1tUS$141.6b17.1x36.3x1.7x
Fri, 15 Dec 2023US$5.2tUS$3.1tUS$139.5b17.3x37.2x1.7x
Sun, 12 Nov 2023US$4.7tUS$3.0tUS$130.9b15x36.3x1.6x
Tue, 10 Oct 2023US$4.7tUS$3.0tUS$113.8b15x41.4x1.6x
Thu, 07 Sep 2023US$5.0tUS$3.0tUS$112.1b15.5x44.2x1.7x
Sat, 05 Aug 2023US$5.1tUS$3.0tUS$110.5b16.3x46.1x1.7x
Price to Earnings Ratio

46.1x


Total Market Cap: US$5.1tTotal Earnings: US$110.5bTotal Revenue: US$3.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Consumer Discretionary Sector Price to Earnings3Y Average 34.7x202420252026
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 34.7x.
  • 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 24% per year over the last three years.
  • Revenues for these companies have grown 7.3% 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-1.50%
Consumer Discretionary-4.51%
Consumer Services6.42%
Retail Distributors5.33%
Hospitality4.99%
Specialty Stores4.07%
Leisure2.46%
Luxury2.12%
Consumer Durables1.37%
Auto Components1.03%
Online Retail and Ecommerce0%0
General Merchandise and Department Stores-5.28%
Auto-15.04%
Industry PE
  • Investors are most optimistic about the Leisure industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 30.2%, which is higher than its past year's earnings decline of 5.8% per year.
Forecasted Growth
  • Analysts are most optimistic on the Auto industry, expecting annual earnings growth of 37% over the next 5 years.
  • This is better than its past earnings decline of 17% per year.
  • In contrast, the Specialty Stores industry is expected to see its earnings grow by 9.4% 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
BKNG Booking HoldingsUS$199.3111.1%
+US$15.4b		-10.9%PE25.1x
HD Home DepotUS$344.473.9%
+US$12.8b		-8.7%PE24.5x
GM General MotorsUS$90.3013.6%
+US$9.5b		73.3%PE42.7x
RCL Royal Caribbean CruisesUS$322.5012.0%
+US$9.3b		-3.6%PE19.7x
LOW Lowe's CompaniesUS$218.247.2%
+US$8.3b		-5.1%PE18.5x

Latest News

RCL
US$322.50
Royal Caribbean Cruises
7D
12.0%
1Y
-3.6%
Seeking Alpha • 9h

Royal Caribbean: Not Priced For Perfecta

Summary Royal Caribbean Cruises remains on a robust growth trajectory, despite higher fuel costs and modest Q2'26 revenue growth of 6.4%. Bookings are at record prices and volumes, supporting strong forward guidance, though 2026 revenue growth was revised slightly down to 9%. Capital returns remain solid with a 2% dividend and $1B in H1'26 buybacks, but nearly $23B in debt poses a risk if travel is disrupted. The stock trades at 16x 2027 EPS estimates with management targeting a 20% CAGR, suggesting the market isn't fully pricing in the forecast growth. Read the full article on Seeking Alpha
AMZN
US$230.86
Amazon.com
7D
-6.7%
1Y
-0.06%
ABNB
US$153.11
Airbnb
7D
6.3%
1Y
11.9%
Seeking Alpha • Jul 28

Airbnb: Offering A Great Value As It Enters Its Next Great Growth Cycle

Summary Airbnb (ABNB) continues to defy negative perceptions, expanding beyond travel rentals while maintaining an asset-light, scalable business model. Q1 2026 results highlight ABNB’s strength, with revenue and gross bookings value up 19% year-over-year to $29.2 billion. Nights and seats booked rose 9% YoY, signaling robust platform demand and countering concerns of platform maturity. I see significant growth runway ahead for ABNB, supported by strong regional demand and ongoing business model evolution. Read the full article on Seeking Alpha
TSLA
US$307.44
Tesla
7D
-17.8%
1Y
-3.6%
MCD
US$273.02
McDonald's
7D
3.5%
1Y
-9.8%
Narrative Update • Jul 27

MCD: NEXT Automation And AI Will Support Long Term Cash Compounding

McDonald's price target narrative is being revised slightly lower to about $323.90 from roughly $331.29, as analysts factor in softer near term sales trends and a mixed restaurant backdrop while still expecting brand strength and market share gains over time. Analyst Commentary Recent Street research on McDonald's reflects a split view, with most analysts trimming price targets while still highlighting the company's brand strength and long term positioning.
HD
US$344.47
Home Depot
7D
3.9%
1Y
-8.7%
Seeking Alpha • Jul 27

Home Depot: The Problems Brewing Underneath The Surface

Summary Home Depot is headed for yet another rough year as the stock is already underperforming the market by a very wide margin. If management's FY 2026 guidance remains intact, then investors could expect the share price to stabilize in the near term. Beyond the next couple of months, however, HD's long-term profitability issues will continue to weigh as growth barely keeps up with inflation. Read the full article on Seeking Alpha
RIVN
US$16.69
Rivian Automotive
7D
-2.9%
1Y
28.1%
CPNG
US$15.44
Coupang
7D
-2.0%
1Y
-48.2%
BABA
US$115.19
Alibaba Group Holding
7D
-2.4%
1Y
-3.5%
Seeking Alpha • Jul 24

Alibaba: Qwen Powering AI Transformation

Summary Alibaba is rated bullish with a $203.29 target, implying 71% upside, driven by AI-led transformation and ecosystem integration. Qwen AI agent is deeply embedded in BABA’s e-commerce, enhancing customer engagement and merchant efficiency and driving token-based monetization. BABA’s Cloud+AI segment is now a core growth engine, with external revenue surpassing $5.3B and triple-digit AI growth for 11 straight quarters. SOTP valuation applies 18x P/E to e-commerce and 3x P/S to AI+Cloud, reflecting robust growth, but macro headwinds and high capex remain key risks. Read the full article on Seeking Alpha
GM
US$90.30
General Motors
7D
13.6%
1Y
73.3%
BXBL
US$4.20
Boxabl
7D
-47.6%
1Y
-57.6%
XPEV
US$12.71
XPeng
7D
-4.7%
1Y
-30.9%
TJX
US$160.80
TJX Companies
7D
3.7%
1Y
27.2%
Seeking Alpha • Jul 16

The TJX Companies: Resilient Performance, But Valuation Caps Upside (Upgrade)

Summary TJX Companies has outperformed retail peers, driven by strong comp sales and margin expansion amid a choppy consumer macro environment. Recent Q1 results delivered a beat-and-raise, with all banners posting high single-digit comps and management citing room for up to ~7k stores. I am raising my rating on TJX to "Neutral," as the stock now presents a balanced bull-bear case after a >20% annual rise and a recent 10% pullback. Key risks include TJX’s thin margin profile in the low 30s and a valuation that appears disconnected from its actual earnings growth. Read the full article on Seeking Alpha
SBUX
US$103.10
Starbucks
7D
-0.8%
1Y
11.1%
LOW
US$218.24
Lowe's Companies
7D
7.2%
1Y
-5.1%
BKNG
US$199.31
Booking Holdings
7D
11.1%
1Y
-10.9%