S&P 500’s biggest turkeys in the consumer discretionary sector: ECDA, VMAR, and others

[A digital stock market chart showing a downward trend arrow against a blue and black background, illustrating an economic downturn concept. 3D Rendering]
peshkov

The consumer discretionary sector (XLY [https://seekingalpha.com/symbol/XLY]) has advanced 2.8% year-to-date, slowly recovering since the April lows after inflation rebound fears, tariffs, and lower consumer sentiment.

According to Seeking Alpha analyst group MTS Insights, the sector faces heightened risk as it approaches the end of the year with a labor market that keeps deteriorating.

“Discretionary companies rely much more on consumer confidence and strong incomes, both of which are showing cracks heading into the holiday season,” MTS Insights said in a recent analysis [https://seekingalpha.com/article/4840368-2025-holiday-sales-outlook-and-xly-consumer-resilience-tested-by-labor-market]. “Valuations in the discretionary sector still reflect optimism that spending will hold up through year-end, yet most retail outlooks, aside from Visa’s, point to slower growth and even declines among younger consumers.”

“The combination of weakening labor market conditions, higher goods prices due to tariffs, and multiple holiday outlooks pointing to subdued spending growth suggests that discretionary consumption will likely disappoint this season,” MTS Insights concluded, assigning a “sell” rating to the sector.

Here are the five consumer discretionary stocks with the lowest year-to-date performance:

* In the automobile industry: ECD Automotive Design (ECDA [https://seekingalpha.com/symbol/ECDA]) -98.5% YTD; Seeking Alpha Quant rating: 2.69 (Hold)
* In leisure products: Vision Marine Technologies (VMAR [https://seekingalpha.com/symbol/VMAR]) -92.5% YTD; SA Quant rating: 2.97 (Hold)
* In consumer electronics: Algorhythm Holdings (RIME [https://seekingalpha.com/symbol/RIME]) -91.7% YTD; SA Quant rating: 2.66 (Hold)
* In auto parts and equipment: REE Automotive Ltd. (REE [https://seekingalpha.com/symbol/REE]) -91.5% YTD; SA Quant rating: 2.58 (Hold)
* Also in leisure products: Interactive Strength (TRNR [https://seekingalpha.com/symbol/TRNR]) -91.5% YTD; SA Quant rating: 2.18 (Hold)

MORE ON THE CONSUMER DISCRETIONARY SELECT SECTOR SPDR® FUND ETF

* 2025 Holiday Sales Outlook And XLY: Consumer Resilience To Be Tested By The Labor Market [https://seekingalpha.com/article/4840368-2025-holiday-sales-outlook-and-xly-consumer-resilience-tested-by-labor-market]
* XLY: When Two Stocks Make An ETF Too Crowded [https://seekingalpha.com/article/4839186-xly-when-two-stocks-make-an-etf-too-crowded]
* As Alphabet nears $4T, here are top 10 consumer discretionary stocks by marketcap [https://seekingalpha.com/news/4525777-as-alphabet-nears-4t-here-are-top-10-consumer-discretionary-stocks-by-marketcap]
* Black Friday, Cyber Monday, and 10 retail stocks to watch [https://seekingalpha.com/news/4525400-black-friday-cyber-monday-and-10-retail-stocks-to-watch]
* Seeking Alpha’s Quant Rating on The Consumer Discretionary Select Sector SPDR® Fund ETF [https://seekingalpha.com/symbol/XLY/ratings/quant-ratings]