NYSE:DEO

Diageo PLC (DEO)

85.16
+2.08 (2.50%)
as of Jul 27, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJul 27, 2026, 12:00 am

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

Diageo PLC is currently facing significant challenges reflecting a shift in consumer behavior, particularly among younger generations who are drinking less. The company's recent performance has prompted a drastic cut to its dividend, with some experts pointing to an erosion of brand strength and high inflation affecting consumer spending. While a few analysts believe there could be a potential turnaround due to a new CEO and a focus on premium brands, the overall consensus leans towards caution. The contentious market dynamics, including cannabis competition and legal issues surrounding specific product lines, further complicate its outlook. Experts recommend keeping a close watch on the stock, suggesting that despite its current premium brand positioning, the company may need to reevaluate its pricing strategies.

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Consensus
Sell
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Valuation
Overvalued
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COMMENT

Great global brand and tremendous diversification across the spirits business, both in terms of the number of products and the number of countries it sells to. Probably pretty expensive right now. Your dividend will grow over time and you will probably get your capital appreciation. For a long hold, in some ways, it is an ideal stock.

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.
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