Top Consumer Discretionary Stocks for January 2022

QRTEA, CHH, and GME are top for value, growth, and momentum, respectively

Companies in the consumer discretionary sector sell nonessential goods and services, such as appliances, cars, and entertainment. Prominent examples include Home Depot Inc. (HD), McDonald’s Corp. (MCD), and Nike Inc. (NKE).

Consumer discretionary companies tend to be more sensitive to the overall business cycle because consumers are more likely to reduce or postpone discretionary purchases when times are tough. Therefore, discretionary stocks outperform the overall market during economic expansions, but they underperform it during economic contractions. By contrast, companies in the consumer staples sector sell essential items such as food and beverages, which are less sensitive to business cycles.

Consumer discretionary stocks, which are represented by an exchange-traded fund (ETF)—the Consumer Discretionary Select Sector SPDR ETF (XLY)—have outperformed the broader market, providing investors with a total return of 29.8% compared with the Russell 1000’s total return of 27.2% over the past 12 months. These market performance figures and all data in the tables below are as of Dec. 23, 2021.

Here are the top three consumer discretionary stocks with the best value, the fastest growth, and the most momentum.

Best Value Consumer Discretionary Stocks

These are the consumer discretionary stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows that you’re paying less for each dollar of profit generated. But they also could turn out to be a classic case of a value trap.

Best Value Consumer Discretionary Stocks
  Price ($) Market Capitalization (Market Cap) ($B) 12-Month Trailing P/E Ratio
Qurate Retail Inc. (QRTEA) 7.66 3.0 2.6
eBay Inc. (EBAY) 64.89 40.6 3.6
Foot Locker Inc. (FL) 41.92 4.2 4.8

Source: YCharts

  • Qurate Retail Inc.: Qurate Retail is an ecommerce service provider. The company partners with television networks and ecommerce sites, social media, mobile applications, and similar platforms to provide video and digital commerce services worldwide. Qurate’s brands include QVC, HSN, Zulily, and Frontgate, among others.
  • eBay Inc.: eBay is a global ecommerce company that connects millions of sellers and buyers in 190 global markets. eBay has 1.5 billion live listings and 152 million active buyers worldwide. In late November 2021, eBay announced that it had acquired the authentication business of Sneaker Con Digital, a sneaker authenticator with operations in the United States, the United Kingdom, Canada, Australia, and Germany. The acquisition extends the two companies’ collaboration that began in October 2020. Since the launch of the service, roughly 1.55 million sneakers have been fully vetted and verified globally on eBay. Terms of the acquisition were not disclosed.
  • Foot Locker Inc.: Foot Locker is an athletic footwear and apparel retailer. It sells its products in physical stores as well as direct-to-consumers via the internet and mobile sites as well as catalogs. On Dec. 13, 2021, Foot Locker announced the launch of its first proprietary womenswear brand, Cozi, for the 2021 holiday season. Cozi features pullover tops and hoodies, wide-leg sweatpants, and high-rise joggers.

Fastest-Growing Consumer Discretionary Stocks

These are the top consumer discretionary stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly year-over-year (YOY) percentage revenue growth and most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore, ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one figure or the other unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of more than 2,500% were excluded as outliers.

Fastest-Growing Consumer Discretionary Stocks
  Price ($) Market Cap ($B) EPS Growth (%) Revenue Growth (%)
Choice Hotels International Inc. (CHH) 152.66 8.5 700.0 53.4
Tesla Inc. (TSLA) 1,067.00 1,072 433.3 56.9
Marriott International Inc. (MAR) 165.19 53.8 116.1 75.1

Source: YCharts

  • Choice Hotels International Inc.: Choice Hotels International is a franchiser of hotel properties. The company also provides vacation rental properties and other services to customers globally. Choice Hotels International reported on Dec. 6, 2021, that its upcoming quarterly cash dividend would increase 6% to $0.2375 per share. The dividend is payable on Jan. 18, 2022, to shareholders of record as of Jan. 4, 2022.
  • Tesla Inc.: Tesla, the world’s largest automaker by market value, is primarily engaged in the design and manufacture of electric cars, SUVs, and trucks, as well as electric vehicle powertrain components. The automaker also manufactures and installs solar energy generation and energy storage products. For the third quarter (Q3) of 2021, which ended on Sept. 30, 2021, Tesla reported that net income attributable to common stockholders rose nearly fivefold YOY, while total revenues surged by almost 57%. The company attributed the performance primarily to growth in vehicle deliveries, as well as growth in other parts of the business.
  • Marriott International Inc.: Marriott International is a franchisor and operator of a global hotel chain. The company franchises lodging facilities and timesharing resorts, and also provides services for home and condominium owner associations.

Consumer Discretionary Stocks with the Most Momentum

These are the consumer discretionary stocks that had the highest total return over the past 12 months.

Consumer Discretionary Stocks with the Most Momentum
  Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
GameStop Corp. (GME) 152.14 11.6 639.6
Ford Motor Co. (F) 20.25 80.9 126.4
Dick’s Sporting Goods Inc. (DKS) 103.94 9.0 97.0
Russell 1000 Index N/A N/A 27.2
Consumer Discretionary Select Sector SPDR ETF (XLY) N/A N/A 29.8

Source: YCharts

  • GameStop Corp.: GameStop operates video game and personal computer (PC) entertainment software stores that sell new and used hardware and software and accessories. GameStop sells its products worldwide. In 2021, the company was among the most famous of the meme stocks—stocks that are popular among retail investors through social media.
  • Ford Motor Co.: Ford is a major manufacturer of sedans, SUVs, trucks, and other vehicles and is mounting a major initiative to catch up to rivals in electric vehicles (EVs) and mobility vehicles. On Dec. 8, 2021, Ford announced that it would invest $900 million in new technologies and systems in its Thailand manufacturing operations. The investment supports production of the next-generation Ranger pickup truck and Everest SUV and adds up to 1,250 jobs.
  • Dick’s Sporting Goods Inc.: Dick’s Sporting Goods is a retailer specializing in the sale of a broad array of sporting goods. The company’s products include sports gear, equipment, apparel, and footwear. It serves customers across the United States.

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  1. YCharts. “Financial Data.” Accessed Dec. 28, 2021.

  2. Qurate Retail, Investor Relations. “Qurate Retail, Inc. Reports Third Quarter 2021 Financial Results.” Accessed Dec. 28, 2021.

  3. eBay. “eBay Acquires Sneaker Con Authentication Business.” Accessed Dec. 28, 2021.

  4. Foot Locker, Investor Relations. “Foot Locker, Inc. Announces New Womenswear Brand Cozi for Holiday 2021.” Accessed Dec. 28, 2021.

  5. Choice Hotels International, Media Center. “Choice Hotels International Increases Quarterly Cash Dividend.” Accessed Dec. 28, 2021.

  6. Tesla. “Q3 2021 Update,” Pages 4–5. Accessed Dec. 28, 2021.

  7. Marriott International, Investor Relations. “Marriott International Reports Third Quarter 2021 Results.” Accessed Dec. 28, 2021.

  8. GameStop, Investor Relations. “GameStop Reports Financial Results for Q3 2021.” Accessed Dec. 28, 2021.

  9. Ford Motor. “Ford Invests US$900 Million to Modernize Thailand Manufacturing for Next-Gen Ranger and Everest; Adds 1,250 New Jobs,” Pages 1–2. Accessed Dec. 28, 2021.

  10. Dick’s Sporting Goods, Investor Relations. “Dick’s Sporting Goods Reports Record Third Quarter Sales and Earnings; Delivers 12.2% Increase in Same Store Sales and Raises Full Year Guidance.” Accessed Dec. 28, 2021.