NYSE:DEO

Diageo PLC (DEO)

80.24
-0.19 (0.24%)
as of Jun 8, 2026, 8:00:00 pm Market Open.
86 watching
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Investor Insights
star iconJun 8, 2026, 12:00 am

This summary was created by AI, based on 6 opinions in the last 12 months.

Diageo PLC has faced significant challenges recently, including an 80% cut to their dividend, signaling a troubling shift in the company's trajectory. Analysts express concerns about declining consumption among younger demographics and increased competition from alternative beverages, such as cannabis. The company, known for its premium-brand focus, has seen sales decline, notably in Agave, and has faced distribution issues. Furthermore, there is skepticism about the efficacy of the new CEO's turnaround strategies. While some analysts believe there is potential for recovery, the consensus is more cautious given the current state of the business and external pressures.

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Consensus
Sell
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Valuation
Overvalued
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BUY ON WEAKNESS

Near an all-time high. Very good company and growing well. Would like to see a little bit of a pull back from a valuation standpoint. Trading around 19X earnings. Normalized would probably be around 16X-17X. Well managed.

BUY ON WEAKNESS

Sin stocks have performed very, very well. Has grown on the back of a distilled liquor business and doing a global roll up in emerging markets. Look for an earnings dip to pick some of the stock up.

BUY

They are the premium alcohol company. Low beta stock but with a 10% long-term growth outlook. Nice dividend yield of about 2.4% that should grow by 9%-10% over the next 3 years.

BUY

World’s biggest liquor company. Been a wonderful investment and he thinks it will continue doing well. The big growth for the company is in developing markets. Well-run company. PE ratio is 18.

BUY

Great company and a great industry. It has all the attributes he likes when investing in a company. Great cash flow and solid management. They understand their business very well. Have a lot of operating leverage. Strong enough balance sheet that they can do acquisitions.

BUY ON WEAKNESS

Have fabulous brand names in liquor. Trades at about 15X earnings with a 3% yield. Payout ratio is about 50%. Had 5% organic growth this year. Great balance sheet. Should continue to do well. If you see a bad day on the stock market, that may be the time to Buy.

BUY

This has had phenomenal run. The thing that worries him is when will it come to an end. Global portfolio of distilled products. Driven by emerging markets. Demand is not going away. He likes it but is concerned about the run. At some point he will cut it in half.

HOLD

(Market Call Minute.) The premium drinks manufacturer. Has leverage to international and emerging markets.

SELL
If he owned, he would be comfortable taking some money off the table. There is a lot of currency activity going on. With all the acquisition activities, valuations are being pushed with liquor companies. Would prefer to buy in the $80's. 2% yield.
HOLD
(Market Call Minute.) This is one you want to stick with.
PAST TOP PICK
(A Top Pick June23/11. Up 24.99%.) About a 3rd of their earnings are from emerging markets and want to increase it to 50% within the next 5 years. Great defensive play with some growth exposure and a decent dividend.
HOLD
Has nothing negative to say about this company. He owns its key competitor Pernod Ricard SA (RI-FRA) but it is a very tough call to decide between the 2. (See Top Picks.)
PAST TOP PICK
(Top Pick Jun 13/11, Up 26.86%) Continues to be one of the most attractive consumer staples stocks out there. It has that combination of organic growth and structurally high margins. 10 leading global brands. Still comfortable holding here at an all-time high.
HOLD
Has done extremely well and is up 15%-16% year to date. In the near-term, it has gotten a bit frothy but you should continue to hold it over the next 12 to 18 months.
BUY
(Market Call Minute) Consumer staples is something you want to be in especially with a global focus
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