Royal Caribbean and Amazon are emerging as the strongest growth stories among the S&P 500's biggest consumer discretionary stocks, earning A- growth grades while several household names fall deep into Sell territory. The divergence highlights an increasingly uneven consumer backdrop, where travel demand and Amazon's diversified growth engine are holding up better than housing-linked and mature restaurant businesses.

Royal Caribbean generates revenue primarily from cruise fares and onboard spending across brands including Royal Caribbean International, Celebrity Cruises and Silversea. Its growth increasingly depends on pricing, occupancy, capacity additions and consumers' willingness to keep spending on travel experiences.

Royal Caribbean and Amazon topped the ranking with A- grades, while Booking Holdings and Tesla followed at B-. Under the methodology, stocks graded B- or better are considered Buy candidates based on growth characteristics.

The contrast further down the list is striking. Ross Stores earned a C+, while Marriott and Starbucks received C grades. TJX slipped to D+, while McDonald's received a D.

Housing-exposed retailers were weakest. Lowe's and Home Depot both earned D- grades, highlighting the growth pressure facing businesses tied closely to housing turnover, remodeling activity and big-ticket consumer spending.

The rankings matter because consumer discretionary stocks are not moving as a single group. Investors are increasingly rewarding companies with stronger revenue expansion and operating momentum while penalizing businesses where growth has slowed despite established brands.

Investor Takeaway

The biggest signal is the widening gap inside consumer discretionary. Royal Caribbean and Amazon currently stand out on growth, while Home Depot, Lowe's and McDonald's face a much higher bar to reaccelerate. Investors should watch Royal Caribbean's bookings, pricing and capacity growth alongside Amazon's retail margins and AWS expansion. For weaker-ranked names, comparable sales and transaction growth will be critical. A recovery in housing activity could improve the outlook for Home Depot and Lowe's, while continued travel demand would reinforce Royal Caribbean's position near the top of the sector.