The S&P 500 has experienced a challenging two-week period marked by escalating geopolitical tensions, sector rotation into defensives, and technical deterioration.
In light of this, below is a list of the top S&P consumer discretionary holdings arranged according to their growth factor grade. The grades are given on a scale from A+ to F, with grades of B- or above considered a Buy and grades of D+ or below considered a Sell.
The list is topped by Royal Caribbean Cruises (RCL), with a growth grade of A+. Realty Income (O) and Tesla (TSLA) follow with A grades, while Amazon.com (AMZN) holds an A- rating. Booking Holdings (BKNG) rounds out the Buy-rated stocks with a B grade.
The remainder of the list includes several major consumer brands that fall into lower growth categories. O’Reilly Automotive (ORLY) holds a C grade, while Starbucks (SBUX) and The TJX Companies (TJX) both carry C- grades. Lowe’s Companies (LOW) and McDonald’s (MCD) sit at the bottom with D grades, and The Home Depot (HD) holds the lowest position with a D- grade.
The growth factor grade is a quantitative assessment used in stock analysis to evaluate a company’s growth prospects and expansion trajectory. This metric systematically analyzes multiple growth-related indicators to determine how effectively a company is scaling its business operations.
Growth factor grades are typically expressed on a letter scale (A+ through F), where higher grades indicate stronger growth characteristics relative to sector peers. An A+ grade represents exceptional growth potential, while lower grades suggest more moderate expansion or potential headwinds.
Here is the list:
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Royal Caribbean Cruises (RCL), Growth grade: A+
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Realty Income (O), Growth grade: A
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Tesla (TSLA), Growth grade: A
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Amazon.com (AMZN), Growth grade: A-
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Booking Holdings (BKNG), Growth grade: B
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O’Reilly Automotive (ORLY), Growth grade: C
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Starbucks (SBUX), Growth grade: C-
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The TJX Companies (TJX), Growth grade: C-
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Lowe’s Companies (LOW), Growth grade: D
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McDonald’s (MCD), Growth grade: D
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The Home Depot (HD), Growth grade: D-