As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at consumer discretionary stocks, starting with Performance Food Group (NYSE: PFGC).
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 137 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 in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.1% since the latest earnings results.
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 print fell short of analysts’ expectations by 0.5%. Overall, it was a mixed quarter for the company with full-year revenue guidance meeting analysts’ expectations but EPS in line with analysts’ estimates.
The market seems disappointed with the results as the stock is down 20.1% since reporting and currently trades at $91.06.
Read our full report on Performance Food Group here, it’s free.
Best Q2: Smith & Wesson (NASDAQ: SWBI)
With a history dating back to 1852, Smith & Wesson (NASDAQ: SWBI) is a firearms manufacturer known for its handguns and rifles.
Smith & Wesson reported revenues of $112.6 million, up 32.3% year on year, outperforming analysts’ expectations by 14.1%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 7% since reporting. It currently trades at $13.13.
Is now the time to buy Smith & Wesson? 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 27.8% since the results and currently trades at $19.97.
Read our full analysis of Matthews’s results here.
Latham (NASDAQ: SWIM)
Started as a family business, Latham (NASDAQ: SWIM) is a global designer and manufacturer of in-ground residential swimming pools and related products.
Latham reported revenues of $197.5 million, up 14.4% year on year. This number surpassed analysts’ expectations by 4.8%. It was a strong quarter as it also produced full-year revenue guidance exceeding analysts’ expectations and full-year EBITDA guidance topping analysts’ expectations.
The stock is up 10.6% since reporting and currently trades at $6.31.
Read our full, actionable report on Latham here, it’s free.
H&R Block (NYSE: HRB)
Founded in 1955 by brothers Henry W. Bloch and Richard A. Bloch, H&R Block (NYSE: HRB) is a tax preparation company offering professional tax assistance and financial solutions to individuals and small businesses.
H&R Block reported revenues of $1.14 billion, up 3% year on year. This print topped analysts’ expectations by 2.5%. Overall, it was a very strong quarter as it also put up full-year revenue guidance beating analysts’ expectations and full-year EBITDA guidance beating analysts’ expectations.
The stock is down 3.7% since reporting and currently trades at $44.93.
Read our full, actionable report on H&R Block 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 Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
