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U.S. Consumer Discretionary Sector Analysis

UpdatedJan 24, 2026
DataAggregated Company Financials
Companies801
  • 7D0.6%
  • 3M1.6%
  • 1Y6.1%
  • YTD3.4%

In the last week, Consumer Discretionary has been flat. As for the the longer term, the industry is up 6.1% over the past 12 months. 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
Sat, 24 Jan 2026US$7.9tUS$3.6tUS$221.3b19.7x35.7x2.2x
Mon, 22 Dec 2025US$7.8tUS$3.6tUS$220.7b19.6x35.2x2.2x
Wed, 19 Nov 2025US$7.4tUS$3.5tUS$223.2b17.2x33.2x2.1x
Fri, 17 Oct 2025US$7.6tUS$3.5tUS$220.8b18.3x34.3x2.2x
Sun, 14 Sep 2025US$7.7tUS$3.5tUS$221.3b19.7x34.7x2.2x
Tue, 12 Aug 2025US$7.0tUS$3.4tUS$217.7b19x32.1x2x
Thu, 10 Jul 2025US$6.8tUS$3.4tUS$216.0b18.9x31.7x2x
Sat, 07 Jun 2025US$6.6tUS$3.4tUS$217.3b17.5x30.5x1.9x
Mon, 05 May 2025US$6.3tUS$3.4tUS$217.2b16.9x28.9x1.8x
Wed, 02 Apr 2025US$6.2tUS$3.4tUS$211.8b16.9x29.1x1.8x
Fri, 28 Feb 2025US$6.9tUS$3.4tUS$211.5b18x32.6x2x
Sun, 26 Jan 2025US$7.3tUS$3.3tUS$202.3b18.9x36.1x2.2x
Tue, 24 Dec 2024US$7.2tUS$3.3tUS$200.7b18x35.7x2.1x
Thu, 21 Nov 2024US$6.7tUS$3.4tUS$198.5b18.3x34x2x
Sat, 19 Oct 2024US$5.8tUS$3.2tUS$178.5b18.6x32.6x1.8x
Mon, 16 Sep 2024US$5.6tUS$3.2tUS$177.5b17.4x31.7x1.8x
Wed, 14 Aug 2024US$5.2tUS$3.2tUS$173.3b17.2x30x1.6x
Fri, 12 Jul 2024US$5.8tUS$3.1tUS$167.3b17.5x34.6x1.8x
Sun, 09 Jun 2024US$5.4tUS$3.1tUS$168.0b17.9x32.2x1.7x
Tue, 07 May 2024US$5.5tUS$3.1tUS$166.5b17.8x33.1x1.8x
Thu, 04 Apr 2024US$5.4tUS$3.1tUS$160.5b18.2x33.4x1.7x
Sat, 02 Mar 2024US$5.4tUS$3.1tUS$155.0b17.7x35x1.8x
Mon, 29 Jan 2024US$5.1tUS$3.1tUS$146.5b17.4x34.6x1.7x
Wed, 27 Dec 2023US$5.3tUS$3.1tUS$141.2b17.7x37.6x1.7x
Fri, 24 Nov 2023US$4.9tUS$3.0tUS$139.1b15.3x35.4x1.6x
Sun, 22 Oct 2023US$4.5tUS$3.0tUS$113.0b14.5x39.5x1.5x
Tue, 19 Sep 2023US$5.0tUS$3.0tUS$112.4b15x44.2x1.7x
Thu, 17 Aug 2023US$4.8tUS$3.0tUS$112.7b15.9x42.9x1.6x
Sat, 15 Jul 2023US$5.1tUS$2.9tUS$99.9b15.5x51.2x1.8x
Mon, 12 Jun 2023US$4.7tUS$2.9tUS$99.3b14.3x47.1x1.6x
Wed, 10 May 2023US$4.2tUS$2.9tUS$92.0b14.1x45.9x1.4x
Fri, 07 Apr 2023US$4.3tUS$2.9tUS$81.7b13.4x53.2x1.5x
Sun, 05 Mar 2023US$4.6tUS$3.1tUS$86.2b14.5x53.2x1.5x
Tue, 31 Jan 2023US$4.7tUS$3.1tUS$109.4b13x42.7x1.5x
Price to Earnings Ratio

42.7x


Total Market Cap: US$4.7tTotal Earnings: US$109.4bTotal Revenue: US$3.1tTotal 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 26% per year over the last three years.
  • Revenues for these companies have grown 5.2% 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 Market-0.39%
Consumer Discretionary0.57%
Auto2.11%
Consumer Services0.85%
General Merchandise and Department Stores0.64%
Retail Distributors0.38%
Luxury0.17%
Specialty Stores0.097%
Leisure0.04%
Online Retail and Ecommerce0%0
Hospitality-0.58%
Auto Components-0.75%
Consumer Durables-2.87%
Industry PE
  • Investors are most optimistic about the Auto industry which is trading above its 3-year average PE ratio of 120x.
    • Analysts are expecting annual earnings growth of 33.0%, 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 7.6% 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$449.062.6%
+US$38.4b		10.4%PE294.1x
BABA Alibaba Group HoldingUS$173.234.7%
+US$17.5b		94.3%PE21.5x
SBUX StarbucksUS$97.625.0%
+US$5.3b		-1.2%PE59.8x
CVNA CarvanaUS$473.316.8%
+US$4.3b		96.8%PE106.4x
ORLY O'Reilly AutomotiveUS$99.234.8%
+US$3.8b		18.7%PE33.7x

Latest News

DHI
US$150.51
D.R. Horton
7D
-3.5%
1Y
5.3%

Results: D.R. Horton, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

Jan 23
Results: D.R. Horton, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates
HD
US$383.77
Home Depot
7D
0.9%
1Y
-7.4%

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

Analysts made only a small adjustment to their Home Depot fair value estimate, trimming the target by less than US$1 as they fine tuned assumptions around the discount rate, modest revenue growth, slightly higher profit margins, and a marginally lower future P/E multiple in light of mixed recent price target moves on the stock. Analyst Commentary Recent research on Home Depot reflects a mix of optimism on the long term and caution around the nearer term, with several firms trimming price targets after Q3 results and guidance, while others have recently raised their targets.
MELI
US$2,137.29
MercadoLibre
7D
3.0%
1Y
15.9%

MELI: Argentina De Risking Will Support Upside Despite Brazilian E Commerce Pressures

Narrative Update The updated analyst fair value estimate for MercadoLibre has moved from about $3,406 to roughly $3,285. This reflects a slightly higher discount rate and more measured assumptions on revenue growth, profit margins, and future P/E, in line with recent Street research where analysts have modestly adjusted price targets while weighing Argentina de risking against a more competitive Brazilian e commerce backdrop.
LEN
US$111.84
Lennar
7D
-5.7%
1Y
-15.5%
CVNA
US$473.31
Carvana
7D
6.8%
1Y
96.8%
SBUX
US$97.62
Starbucks
7D
5.0%
1Y
-1.2%

SBUX: Turnaround Progress And Labor Disputes Will Shape Future Traffic And Margins

Narrative Update Analysts have nudged their Starbucks fair value estimate higher to US$95.06 from US$94.13, citing refreshed price targets from firms raising expectations for coffee chains within their 2026 restaurant group outlooks and ongoing confidence in the company’s turnaround efforts despite sector wide sales headwinds. Analyst Commentary Recent research on Starbucks reflects a mix of optimism around the turnaround story and caution around sector wide pressures, with several firms fine tuning price targets and earnings assumptions as they update 2026 restaurant group outlooks.
EXPE
US$271.14
Expedia Group
7D
-4.9%
1Y
58.3%
AZO
US$3,700.00
AutoZone
7D
5.1%
1Y
11.0%

AZO: Do It For Me Strength Will Counter Recent Caution On Do It Yourself

Narrative Update Analysts have trimmed their AutoZone fair value estimate by about $118 to $4,213, reflecting slightly higher discount rate assumptions, a modestly lower profit margin outlook, and a higher future P/E input following recent price target resets and sector views from major research firms. Analyst Commentary Street research on AutoZone has turned more mixed recently, with some firms trimming price targets while others see an improved risk and reward profile after the stock's pullback.
TSLA
US$449.06
Tesla
7D
2.6%
1Y
10.4%

TSLA: Autonomy And Robotaxi Progress Will Reshape Long-Term Equity Story

Analysts have nudged their Tesla price targets higher by aligning models with slightly lower discount rates, marginally firmer revenue growth and profit margin assumptions, and a modestly reduced future P/E multiple. Recent research highlights both upside tied to full self driving and robotaxi potential, as well as ongoing concerns about auto fundamentals and execution risk.
ORLY
US$99.23
O'Reilly Automotive
7D
4.8%
1Y
18.7%

ORLY: Pricing Tailwinds And Expanded Buybacks Will Support Future Upside

Analysts have trimmed their price target on O'Reilly Automotive by $5, citing slightly higher discount rate and P/E assumptions, along with recent Street research that includes a modest target cut at Morgan Stanley and an upgrade with supportive pricing commentary at Raymond James. Analyst Commentary Bullish analysts are highlighting a constructive setup for O'Reilly Automotive, pointing to recent research that balances a modest price target trim against more optimistic rating changes and commentary on pricing.
CPNG
US$19.99
Coupang
7D
-5.4%
1Y
-11.4%

CPNG: Data Breach Resolution And Margin Execution Will Support US$40 Upside

Analysts have kept their Coupang fair value estimate steady at US$40.00, but updated assumptions around discount rate, revenue growth, profit margins and a higher future P/E reflect a mix of regulatory risk after the data breach and continued confidence from recent price target moves, such as Barclays' lift to US$40 and a more constructive stance from Deutsche Bank. Analyst Commentary Recent research highlights a split view, with some firms cautious after the data breach and others more constructive on Coupang's ability to execute and support a higher valuation.
FLUT
US$174.91
Flutter Entertainment
7D
-7.2%
1Y
-34.6%
BABA
US$173.23
Alibaba Group Holding
7D
4.7%
1Y
94.3%
MAR
US$319.70
Marriott International
7D
-1.9%
1Y
12.5%
YUM
US$152.97
Yum! Brands
7D
-4.5%
1Y
19.3%

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.
TJX
US$153.24
TJX Companies
7D
-2.6%
1Y
24.9%

TJX: Off Price Execution And FY26 Guidance Will Support Multi Year Outlook

Analysts nudged their price target for TJX higher to about $164 from roughly $160, citing supportive Street research that highlights stronger Q3 results, updated FY26 guidance, and broad confidence in off-price retail trends and TJX's multi-banner momentum. Analyst Commentary Recent research points to a generally constructive stance on TJX, with multiple firms lifting valuation targets after the Q3 report and updated FY26 guidance.