Let’s dig into the relative performance of Service International (NYSE: SCI) and its peers as we unravel the now-completed Q2 consumer discretionary - specialized consumer services earnings season.

The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Some consumer discretionary companies don’t fall neatly into a category because their products or services are unique. Although their offerings may be niche, these companies have often found more efficient or technology-enabled ways of doing or selling something that has existed for a while. Technology can be a double-edged sword, though, as it may lower the barriers to entry for new competitors and allow them to serve customers better.

The 10 consumer discretionary - specialized consumer services stocks we track reported a slower Q2. As a group, revenues missed analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was 1% above.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 13.8% since the latest earnings results.

Service International (NYSE: SCI)

Founded in 1962, Service International (NYSE: SCI) is a leading provider of death care products and services in North America.

Service International reported revenues of $1.10 billion, up 3.6% year on year. This print exceeded analysts’ expectations by 1.8%. Overall, it was a satisfactory quarter for the company with full-year EPS guidance topping analysts’ expectations.

Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 9.7% since reporting and currently trades at $77.39.

Is now the time to buy Service International? Access our full analysis of the earnings results here, it’s free.

Best Q2: H&R Block (NYSE: HRB)

Founded in 1955 by brothers Henry W. Bloch and Richard A. Bloch, H&R Block (NYSE: HRB) is a tax preparation company offering professional tax assistance and financial solutions to individuals and small businesses.

H&R Block reported revenues of $1.14 billion, up 3% year on year, outperforming analysts’ expectations by 2.5%. The business had a very strong quarter with full-year revenue guidance beating analysts’ expectations and full-year EBITDA guidance beating analysts’ expectations.

H&R Block pulled off the biggest analyst estimate beat and highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 8.4% since reporting. It currently trades at $42.75.

Is now the time to buy H&R Block? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Matthews (NASDAQ: MATW)

Originally a death care company, Matthews International (NASDAQ: MATW) is a diversified company offering ceremonial services, brand solutions and industrial technologies.

Matthews reported revenues of $246 million, down 29.6% year on year, falling short of analysts’ expectations by 7%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates and full-year EBITDA guidance missing analysts’ expectations.

Matthews delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 29.8% since the results and currently trades at $19.43.

Read our full analysis of Matthews’s results here.

LKQ (NASDAQ: LKQ)

A global distributor of vehicle parts and accessories, LKQ (NASDAQ: LKQ) offers its customers a comprehensive selection of high-quality, affordably priced automobile products.

LKQ reported revenues of $3.41 billion, down 3% year on year. This result came in 2.3% below analysts’ expectations. Overall, it was a softer quarter as it also recorded full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ EPS estimates.

The stock is down 14.9% since reporting and currently trades at $22.45.

Read our full, actionable report on LKQ here, it’s free.

WeightWatchers (NASDAQ: WW)

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.

WeightWatchers reported revenues of $162.3 million, down 14.2% year on year. This print beat analysts’ expectations by 2%. More broadly, it was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates but a miss of analysts’ EBITDA estimates.

WeightWatchers had the weakest full-year guidance update of the whole group. The stock is up 2.1% since reporting and currently trades at $15.73.

Read our full, actionable report on WeightWatchers here, it’s free.

Market Update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.