ASX consumer discretionary stocks have been among the worst-performing in 2026.
The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is down 14% year to date, compared to a flat S&P/ASX 200 Index (ASX: XJO).
Interest rates, inflation, and geopolitical conflict have all weighed on consumer sentiment, as investors have pushed towards safe-haven assets this year.
These economic factors have all been headwinds for the sector this year.
However, there are now pockets of value appearing in a struggling sector.
One such consumer discretionary stock is Eagers Automotive Ltd (ASX: APE).
The team at Bell Potter have identified this consumer discretionary stock as one with upside.
Image source: Getty Images
Company overview
Eagers Automotive is the largest automotive retailing group in the Australian market.
The company's core business involves the ownership and operation of motor vehicle dealerships covering a diversified portfolio of automotive brands. Its product and service offerings include the sale of new and used vehicles, vehicle repair services, and parts, among others.
The company also facilitates vehicle financing through third-party providers.
Its share price has stayed relatively flat in 2026, showing some resilience compared to other consumer discretionary stocks.
Bell Potter recently increased its price target on the company, following the completion of its strategic investment in CanadaOne Auto, effective 30th April.
Here's what the broker had to say.
Updated view
Eagers Automotive has completed its strategic investment in CanadaOne Auto as of April 30.
The company also announced that Pat Priestner, the founder of CanadaOne Auto, has exercised an option to acquire a 5% stake in easyauto123.
The only change to forecasts is related to timing.
Analysts had previously assumed the investment would begin contributing from the end of March, but it instead started at the end of April.
As a result, 2026 revenue and profit forecasts have been reduced by about 3%. There are no changes to the underlying business outlook in either Australia or Canada, and forecasts for 2027, 2028, and dividends remain essentially unchanged.
Price target increases
Following the update, the team at Bell Potter increased the target price to $29.25 (previously $28.50).
The broker has also maintained its buy recommendation.
From yesterday's closing price of $24.57, this updated price target indicates an upside potential of nearly 20%.
Potential drivers for the share price include strong sales from BYD, a recovery in Toyota sales in Australia, possible acquisitions in Canada following the completed investment, and a solid first-half result expected in August.
