3 Consumer Stocks That Concern Us

Anthony Lee Mon, May 4, 2026 at 7:16 PM EDT 3 min read **

• ^GSPC
• WW
• TNL
• FIGS

Consumer discretionary businesses are levered to the highs and lows of economic cycles. Thankfully for the industry, demand trends seem to be healthy as discretionary stocks have gained 7.5% over the past six months. This performance has nearly mirrored the S&P 500.

Nevertheless, this stability can be deceiving as many companies in this space lack recurring revenue characteristics and ride short-term fads. Keeping that in mind, here are three consumer stocks that may face trouble.

• More from Yahoo Scout Why is Figs facing declining earnings and growth concerns?

How has WeightWatchers' revenue decline affected its prospects?

What debt risks make Travel + Leisure stock concerning?

What common issues affect these three consumer stocks?

Figs (FIGS)

Market Cap: $2.57 billion

Rising to fame via TikTok and founded in 2013 by Heather Hasson and Trina Spear, Figs (NYSE:FIGS) is a healthcare apparel company known for its stylish approach to medical attire and uniforms.

Why Do We Avoid FIGS?**

Lackluster 19.1% annual revenue growth over the last five years indicates the company is losing ground to competitors

• Earnings per share have contracted by 3.6% annually over the last four years, a headwind for returns as stock prices often echo long-term EPS performance

• Free cash flow margin is projected to show no improvement next year

Figs is trading at $15.45 per share, or 59.1x forward P/E. Read our free research report to see why you should think twice about including FIGS in your portfolio, it’s free.

Travel + Leisure (TNL)

Market Cap: $4.02 billion

Formerly known as Wyndham Destinations, Travel + Leisure (NYSE:TNL) is a global vacation company that provides travelers with vacation ownership, exchange, and travel services.

Why Is TNL Risky?

• Sluggish trends in its tours conducted suggest customers aren’t adopting its solutions as quickly as the company hoped

• Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

• High net-debt-to-EBITDA ratio of 8× increases the risk of forced asset sales or dilutive financing if operational performance weakens

Travel + Leisure’s stock price of $64.41 implies a valuation ratio of 8.6x forward P/E. Dive into our free research report to see why there are better opportunities than TNL.

WeightWatchers (WW)

Market Cap: $106.7 million

Known by many for its old cable television commercials, WeightWatchers (NASDAQ:WW) is a wellness company offering a range of products and services promoting weight loss and healthy habits.

Why Are We Out on WW?

• Products and services have few die-hard fans as sales have declined by 12.4% annually over the last five years

• Cash burn makes us question whether it can achieve sustainable long-term growth

• Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

** Story Continues At $10.81 per share, WeightWatchers trades at 3.8x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why WW doesn’t pass our bar.

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