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The performance of consumer discretionary businesses is closely linked to economic cycles. Over the past six months, it seems like demand trends are working against their favor as the industry has tumbled by 5.2%. This drawdown was disheartening since the S&P 500 stood firm.

While some companies have durable competitive advantages that enable them to grow consistently, the odds aren’t great for the ones we’re analyzing today. With that said, here are three consumer stocks best left ignored.

Ralph Lauren (RL)

Market Cap: $16.65 billion

Originally founded as a necktie company, Ralph Lauren (NYSE:RL) is an iconic American fashion brand known for its classic and sophisticated style.

Why Do We Think Twice About RL?

1. Weak constant currency growth over the past two years indicates challenges in maintaining its market share

2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 4.1%

3. Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 2.7 percentage points over the next year

Ralph Lauren is trading at $269.50 per share, or 20.7x forward P/E. Check out our free in-depth research report to learn more about why RL doesn’t pass our bar.

Sirius XM (SIRI)

Market Cap: $7.39 billion

Known for its commercial-free music channels, Sirius XM (NASDAQ:SIRI) is a broadcasting company that provides satellite radio and online radio services across North America.

Why Should You Dump SIRI?

1. Demand for its offerings was relatively low as its number of core subscribers has underwhelmed

2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 36.6% annually while its revenue grew

3. Eroding returns on capital suggest its historical profit centers are aging

Sirius XM’s stock price of $21.85 implies a valuation ratio of 7.3x forward P/E. Dive into our free research report to see why there are better opportunities than SIRI.

RE/MAX (RMAX)

Market Cap: $152.3 million

Short for Real Estate Maximums, RE/MAX (NYSE:RMAX) operates a real estate franchise network spanning over 100 countries and territories.

Why Do We Pass on RMAX?

1. Performance surrounding its agents has lagged its peers

2. Earnings per share fell by 8.9% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable

3. ROIC of 0% reflects management’s challenges in identifying attractive investment opportunities

At $7.64 per share, RE/MAX trades at 5.9x forward P/E. If you’re considering RMAX for your portfolio, see our FREE research report to learn more.