Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at US Foods (NYSE: USFD) and its peers.
This sector includes everything from cable TV services to hotel stays to gym memberships. While diverse, the way people buy and experience these products is being upended by the internet and digitization. Consumer discretionary companies are working to adapt to secular trends such as streaming video, online marketplaces for lodging accommodations, and connected fitness. That discretionary purchases are, by definition, something consumers can give up makes it even more imperative for companies in the space to adapt.
The 141 consumer discretionary stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 4.1% below.
Thankfully, share prices of the companies have been resilient as they are up 6% on average since the latest earnings results.
US Foods (NYSE: USFD)
With a fleet of over 6,500 trucks delivering everything from fresh produce to frozen entrées, US Foods (NYSE: USFD) is a major foodservice distributor that supplies food products and services to approximately 250,000 restaurants, healthcare facilities, hotels, and educational institutions across the United States.
US Foods reported revenues of $9.61 billion, up 2.8% year on year. This print fell short of analysts’ expectations by 0.5%. Overall, it was a slower quarter for the company with a significant miss of analysts’ EPS and adjusted operating income estimates.
Interestingly, the stock is up 13.3% since reporting and currently trades at $104.29.
Read our full report on US Foods here, it’s free.
Best Q1: Howard Hughes Holdings (NYSE: HHH)
Named after the eccentric business magnate and aviator whose legacy lives on in real estate development, Howard Hughes Holdings (NYSE: HHH) develops, owns, and manages master-planned communities and commercial properties across the United States.
Howard Hughes Holdings reported revenues of $235.9 million, up 18.4% year on year, outperforming analysts’ expectations by 20.4%. The business had an incredible quarter with a beat of analysts’ EPS estimates.
Howard Hughes Holdings scored the biggest analyst estimate beat among its peers. The market seems happy with the results as the stock is up 16.8% since reporting. It currently trades at $74.21.
Is now the time to buy Howard Hughes Holdings? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Leggett & Platt (NYSE: LEG)
Founded in 1883, Leggett & Platt (NYSE: LEG) is a diversified manufacturer of products and components for various industries.
Leggett & Platt reported revenues of $918.2 million, down 10.2% year on year, falling short of analysts’ expectations by 3.3%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
Interestingly, the stock is up 4.7% since the results and currently trades at $11.90.
Read our full analysis of Leggett & Platt’s results here.
Covista (NYSE: CVSA)
Formerly known as DeVry Education Group, Covista (NYSE: CVSA) is a global provider of workforce solutions and educational services.
Covista reported revenues of $487 million, up 4.5% year on year. This print beat analysts’ expectations by 2.7%. It was a strong quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates and a beat of analysts’ EPS estimates.
The stock is up 9.9% since reporting and currently trades at $128.54.
Read our full, actionable report on Covista here, it’s free.
Disney (NYSE: DIS)
Founded by brothers Walt and Roy, Disney (NYSE: DIS) is a multinational entertainment conglomerate, renowned for its theme parks, movies, television networks, and merchandise.
Disney reported revenues of $25.17 billion, up 6.5% year on year. This result topped analysts’ expectations by 1.3%. Overall, it was a strong quarter as it also put up a solid beat of analysts’ adjusted operating income and EPS estimates.
The stock is down 1.4% since reporting and currently trades at $99.10.
Read our full, actionable report on Disney here, it’s free.
Market Update
Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?
These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
