Worst Performing Consumer Discretionary Stocks of January 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Rivian's Poor Performance: Rivian Automotive (RIVN) leads the list with a one-month performance of -26.61%, indicating a significant decline in market confidence that could hinder future financing opportunities.
- Las Vegas Sands Decline: Las Vegas Sands (LVS) saw a drop of -19.70% despite holding a Buy rating of 3.50, suggesting that ongoing declines may affect investor confidence in its long-term growth potential.
- Other Underperformers: Coupang (CPNG) and DraftKings (DKNG) experienced declines of -18.27% and -13.32%, respectively, highlighting a general weakness in the consumer discretionary sector that could lead to overall market pessimism.
- Hold Rated Companies: Companies like Wynn Resorts (WYNN), Dutch Bros (BROS), DoorDash (DASH), and Chewy (CHWY) hold Hold ratings, yet their declining performances reflect a cautious market sentiment towards the consumer discretionary industry.
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Analyst Views on RIVN
Wall Street analysts forecast RIVN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RIVN is 17.78 USD with a low forecast of 10.00 USD and a high forecast of 25.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
8 Buy
7 Hold
3 Sell
Moderate Buy
Current: 15.170
Low
10.00
Averages
17.78
High
25.00
Current: 15.170
Low
10.00
Averages
17.78
High
25.00
About RIVN
Rivian Automotive, Inc. is an automotive manufacturer, which is engaged in developing and building category-defining electric vehicles (EVs) and accessories, as well as software and services that address the entire lifecycle of the vehicle. The Company’s R1 platform consists of two vehicles: the R1T, a two-row five-passenger pickup truck, and the R1S, a three-row seven-passenger sport utility vehicle (SUV). In the commercial market, the Company offers a Rivian Commercial Vehicle (RCV) platform. The vehicle on this platform is the Electric Delivery Van (EDV), designed and engineered by Rivian in collaboration with Amazon. The Company also offers FleetOS, its proprietary, end-to-end centralized fleet management subscription platform. It also offers a variety of services, including vehicle repair and maintenance, financing, insurance, software subscriptions and FleetOS solutions. Its value-added services include vehicle electrical architecture and software development services, and more.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Rivian Automotive Faces Market Challenges Ahead
- Production Capacity Improvement: Rivian achieved gross profit in Q4 2024, indicating that its electric truck sales now exceed production costs, laying a foundation for future profitability despite ongoing losses.
- Intensified Market Competition: Unlike Tesla, Rivian faces a more competitive landscape with major automakers and other EV manufacturers already holding market share, making its market entry strategy crucial.
- New Model Launch Plans: Rivian plans to introduce the R2, a lower-priced truck aimed at the mass market in 2026, although the market acceptance of this model remains uncertain, its successful launch will be key to the company's future growth.
- Strong Cash Position: With $7 billion in cash reserves at the end of Q3 2025, Rivian is well-positioned to produce and sell the R2, yet investors should remain cautious and wait for the model's market performance before deciding to invest.
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Rivian Set to Achieve 2026 Goals with R2 Launch
- Strong Cash Reserves: As of Q3 2025, Rivian holds approximately $7 billion in cash and short-term investments, providing ample funding for its capital investment plans and ensuring a smooth launch of the R2 model in 2026.
- Profits from High-End Models: Rivian achieved a modest gross profit in Q4 2024 and is expected to be profitable for the full year of 2025, indicating that its sales revenue from high-end electric vehicles exceeds production costs, boosting market confidence.
- Strategic R2 Model: Rivian plans to launch the lower-cost R2 model in 2026, targeting the mass market; if successful, this could significantly increase production volume and lower unit costs, driving the company towards sustainable profitability.
- Market Acceptance Risk: While the R2 launch is seen as crucial for the company's future success, consumer acceptance remains uncertain, and poor market reception could jeopardize Rivian's long-term viability.
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