As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the consumer discretionary - specialized consumer services industry, including Service International (NYSE: SCI) and its peers.

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 do serve customers better.

The 11 consumer discretionary - specialized consumer services stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.1% 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 $1.11 billion, up 1.7% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a narrow beat of analysts’ EBITDA estimates but full-year EPS guidance slightly missing analysts’ expectations.

Unsurprisingly, the stock is down 4.9% since reporting and currently trades at $80.25.

Read our full report on Service International here, it’s free.

Best Q4: 1-800-FLOWERS (NASDAQ: FLWS)

Founded in 1976, 1-800-FLOWERS (NASDAQ: FLWS) is an online retailer of flowers, gifts, and gourmet foods, serving customers globally.

1-800-FLOWERS reported revenues of $702.2 million, down 9.5% year on year, in line with analysts’ expectations. The business had a strong quarter with a beat of analysts’ EPS estimates and a narrow beat of analysts’ EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 18.4% since reporting. It currently trades at $3.30.

Is now the time to buy 1-800-FLOWERS? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Pool (NASDAQ: POOL)

Founded in 1993 and headquartered in Louisiana, Pool (NASDAQ: POOL) is one of the largest wholesale distributors of swimming pool supplies, equipment, and related leisure products.

Pool reported revenues of $982.2 million, flat year on year, falling short of analysts’ expectations by 1.7%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates.

Pool delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 15.7% since the results and currently trades at $215.19.

Read our full analysis of Pool’s results here.

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 $198.9 million, up 11.1% year on year. This print surpassed analysts’ expectations by 7.4%. It was a satisfactory quarter as it also put up a solid beat of analysts’ revenue estimates.

The stock is down 19.6% since reporting and currently trades at $29.90.

Read our full, actionable report on H&R Block here, it’s free.

ADT (NYSE: ADT)

Founded in 1874 and headquartered in Boca Raton, Florida, ADT (NYSE: ADT) is a provider of security, automation, and smart home solutions, offering comprehensive services for home and business protection.

ADT reported revenues of $1.28 billion, up 1.3% year on year. This result missed analysts’ expectations by 1.2%. Zooming out, it was a mixed quarter as it also logged EPS in line with analysts’ estimates but a slight miss of analysts’ revenue estimates.

The stock is down 14.9% since reporting and currently trades at $6.83.

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

Market Update

Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

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