3 Consumer Stocks Trading Under 17 Times Earnings

The tech-driven bull market over the past three years has left top consumer brands trading at attractive valuations.

Royal Caribbean (NYSE: RCL), Lululemon (NASDAQ: LULU), and Uber (NYSE: UBER) offer different paths to higher earnings. Based on next year's consensus earnings estimates, all three trade below 17 times forward earnings.

Here's why they could be worth buying.

Image source: Getty Images.

1. Royal Caribbean

Royal Caribbean stock rose about 26% over the past year through the Nov. 5, 2026, close, supported by strong demand and an upgraded outlook for earnings this year. Long-term travel trends could carry it further. The World Travel & Tourism Council's May 2026 research projects travel will grow roughly 1.5 times faster than the global economy over the next decade.

Royal Caribbean is already benefiting from that trend. Third-quarter revenue grew 9% year over year, and management said 2027 bookings were running ahead of historical levels and at higher ticket prices. That signals a growing appetite for travel beyond the recent vacation season.

Its planned purchase of a 50% interest in Sandals and Beaches Resorts could broaden that opportunity. The portfolio includes 18 all-inclusive resorts, giving the cruise operator another way to connect with more travelers. The deal is expected to close in early 2027, providing an additional growth catalyst for next year.

Travel has been the one area consumers have continued to spend on in recent years amid elevated inflation and interest rates. At a valuation of 16 times 2027 consensus earnings, Royal Caribbean looks reasonably priced to deliver returns on par with future earnings. Analysts expect earnings to grow at an annualized rate of about 13.7% in the next several years.

2. Lululemon

Lululemon stock fell about 33% over the year through the Nov. 5, 2026, close. In the fiscal second quarter, Lululemon trimmed its full-year sales outlook and reported a 12% decline in second-quarter comparable sales in the Americas. However, a new CEO could give this once high-flying brand a fresh start, which is not priced into the stock right now.

Lululemon has shaken up its leadership after appointing new CEO Heidi O'Neill in September. The Oct. 7 leadership overhaul named former Athleta CEO Maggie Gauger president and chief product officer, and former Walmart Canada executive Joseph Godsey chief operating officer, both effective Oct. 26.

Management is focused on improving the product assortment, increasing marketing, and controlling expenses. A fresh merchandise strategy can bring shoppers back. Lululemon's brand still carries enough weight to grow outside the Americas, with revenue from its Rest of World segment up 6% in constant currency last quarter.

Investors are not paying a premium for growth right now. At about 13 times consensus earnings for the fiscal year ending January 2028, it is well below the 20-plus earnings multiple it traded at over the past decade. The stock could be undervalued ahead of a potential brand recovery under new leadership.

3. Uber

Uber stock fell about 26% over the past year, driven by concerns about emerging competition from robotaxis and a disappointing profit outlook. However, third-quarter gross bookings -- the value of transactions on its platform -- still grew a healthy 20% year over year. Lyft, DoorDash, and robotaxi operators will bring more competition, but Uber has an established customer network and data from billions of transactions, which might be overlooked.

Uber completed about 4.1 billion rides and delivery orders in the third quarter and reached 215 million monthly users. It also has roughly 55 million Uber One members. Its algorithms learn from billions of trips to decide where driver and customer incentives will have the greatest effect. That can improve the service and drive repeat usage, providing it with more information to improve its platform.

One service with momentum is delivery. Uber Eats gross bookings grew 23% year over year in Q3. On Nov. 5, Amazon announced that U.S. Prime members could get free deliveries on restaurant orders of $25 or more through Amazon's website and shopping app -- all powered by Uber Eats.

Competition is a risk worth monitoring, as it could force Uber to spend more on discounts and driver incentives, weighing on profits. Even so, about 15 times 2027 consensus earnings might be too low for a business with massive amounts of data and a powerful new channel to reach customers through Amazon. The stock could deliver market-beating returns in the coming years if it delivers on analysts' estimates calling for 27% annualized earnings growth.

John Ballard has positions in Amazon and DoorDash. The Motley Fool has positions in and recommends Amazon, DoorDash, Lyft, and Walmart. The Motley Fool recommends Lululemon Athletica Inc. and Uber Technologies. The Motley Fool has a disclosure policy.