Wrapping up Q2 earnings, we look at the numbers and key takeaways for the consumer discretionary stocks, including 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 138 consumer discretionary stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.7% while next quarter’s revenue guidance was 0.8% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.4% 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 $10.53 billion, up 4.5% year on year. This print exceeded analysts’ expectations by 0.6%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates.

Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 6.7% since reporting and currently trades at $93.72.

Is now the time to buy US Foods? Access our full analysis of the earnings results here, it’s free.

Best Q2: 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 $1.12 billion, up 330% year on year, outperforming analysts’ expectations by 139%. The business had an incredible quarter with a beat of analysts’ EPS estimates.

Howard Hughes Holdings achieved the biggest analyst estimate beat and fastest revenue growth of the whole group. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $65.95.

Is now the time to buy Howard Hughes Holdings? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Matthews (NASDAQ: MATW)

Originally a death care company, Matthews International (NASDAQ: MATW) is a diversified company offering ceremonial services, brand solutions and industrial technologies.

Matthews reported revenues of $246 million, down 29.6% year on year, falling short of analysts’ expectations by 7%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates and full-year EBITDA guidance missing analysts’ expectations.

As expected, the stock is down 30.5% since the results and currently trades at $19.22.

Read our full analysis of Matthews’s results here.

Sysco (NYSE: SYY)

Powering more than 730,000 commercial kitchens across North America and Europe, Sysco (NYSE: SYY) is a global food distributor that supplies restaurants, healthcare facilities, schools, hotels, and other foodservice establishments with food products and related services.

Sysco reported revenues of $22.12 billion, up 4.7% year on year. This print surpassed analysts’ expectations by 0.8%. Taking a step back, it was a mixed quarter as it also recorded a narrow beat of analysts’ EPS estimates but a miss of analysts’ EBITDA estimates.

The stock is down 8.6% since reporting and currently trades at $77.70.

Read our full, actionable report on Sysco here, it’s free.

Performance Food Group (NYSE: PFGC)

With a massive network spanning 155 distribution centers and delivering over 250,000 different food products, Performance Food Group (NYSE: PFGC) distributes food and food-related products to over 300,000 restaurants, convenience stores, theaters, and institutions across North America.

Performance Food Group reported revenues of $18.03 billion, up 6.4% year on year. This result came in 0.5% below analysts’ expectations. Aside from that, it was a mixed quarter as it also produced full-year revenue guidance meeting analysts’ expectations but EPS in line with analysts’ estimates.

The stock is down 20.8% since reporting and currently trades at $90.23.

Read our full, actionable report on Performance Food Group here, it’s free.

Market Update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.