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Top 6 Distillers & Wineries Stock to Buy in 2019
Investor Insights

This summary was created by AI, based on 7 opinions in the last 12 months.

Diageo PLC (DEO-N) is facing challenges with declining sales, lower volumes, and margin compression. Management shakeup has also impacted the stock. However, some experts see potential in the company's brand portfolio, global presence, and potential for growth in emerging markets. The stock is currently trading at a relatively modest valuation, with a dividend yield of around 3-4%.

Consensus
Mixed
Valuation
Fair Value
DON'T BUY
Diageo PLC

If you look at the June numbers, sales were down and volumes were down in a lot of places around the world. So spirits are doing very poorly, and it's a higher-priced product. Margin compression. Expectations of 5-7% growth for the second half is over-optimistic.

Needs to restructure into fewer brands. Big issue is that it's not growing as fast as it used to, nor does it have pricing power anymore. Management shakeup has hurt. Stock's fallen a lot, so you could try a value play if you're prepared to hold for a long time.

food processing
BUY
Diageo PLC

Very well managed. Had volume, pricing and inventory issues. Overwhelming healthy messages from government to limit intake. Younger generation doesn't drink as much as older ones. Not expensive, a lot of the negatives are priced in. Yield is just over 4%.

Take a look. Nice, conservative name to own. Potentially undervalued, and could turn around.

food processing
COMMENT
Diageo PLC

The high-end boozemaker is out of touch with the American consumer who is struggling. DEO's top tequila brand used to boast super growth, but is now -22% in the past year; not they have slashed the price of that tequila to adjust.

food processing
DON'T BUY
Diageo PLC

Sales are slipping and their dividend isn't growing despite being a mature company. LVMH offers far better dividend growth, for example.

food processing
BUY
Diageo PLC

He's added at lower levels, a great opportunity. Best in the world at what they do. Sales have been soft, but they have so many of the top brands in the world. When someone like George Clooney comes out with a brand, they buy it and bring it into the distribution network. Will raise dividend and generate earnings growth for many years. Yields around 3%.

food processing
PAST TOP PICK
Diageo PLC
(A Top Pick Nov 01/22, Down 11%)

Disappointing earnings. Hurt in Latin America. General slowing, including US. Core holding. Great company, trades at 19x earnings. 2.8% dividend yield, steady growth over time. Share buybacks. Growth of India's middle class will be a huge driver.

food processing
DON'T BUY
Diageo PLC

On Nov. 10, they issued an operating profit warning, because they're getting killed in Latin America and the Caribbean, because consumers are trading down to cheaper brands. Younger people are drinking less hard alcohol than previous generations, verified by a recent poll. One factor is the legalization of cannabis. Another is that companies have been hiking liquor prices too often. Also, the new weight-loss drugs reduce craving for booze.

food processing
HOLD
Diageo PLC

Neutral on fate of company. Drop in valuation good, but moving towards a fair valuation at current price. Would be good to hold, or wait to buy on weakness. Premium offering of alcoholic spirit selection. 

food processing
TOP PICK
Diageo PLC
By far the largest distributor of alcohol beverages globally. Focusing on premium brands(higher margins). Sales rising which creates good profits. Able to buy emerging brands such as George Clooney's vodka brand. Rebound in travel increasing demand for alcohol. High dividend yield is good for investors. Not worried about looming recession, but high end products/brands won't be affected.
food processing
SELL
Diageo PLC
He sold this. No compelling reason to own it. It recovered with the market and offers reasonable metrics, but there are better stocks--he wants good cash flow to protect him in a downturn. He's getting picky.
food processing
SELL
Diageo PLC
He sold Diageo recently, because it scored poorly in valuation and dividend (decelerating). Consumers may buy fewer of their brands because of hot inflation. He owned this for a long time, but it was time to move on.
food processing
PAST TOP PICK
Diageo PLC
(A Top Pick Jul 28/21, Down 6%) Is the fastest-growing spirits/drinks company now with revenue growth nearing 10%. It carries a huge portfolio of premium brands which are immune to a recession. DEO is a core holding. A world-class business.
food processing
TOP PICK
Diageo PLC
#1 player globally. Focused on higher-end brands in all of the sectors they're in. So they can charge more, and their margins are growing. Spirits are gaining space on the shelf. Organic growth of 4-5%. Beverages are all about distribution, and they have the best. No one like them in the sector. Dividends grow over time. Yield is 1.58%. (Analysts’ price target is $200.07)
food processing
WEAK BUY
Diageo PLC
People are probably drinking a little more than they otherwise would. He was negative before COVID-19 because all their growth was by tuck-in acquisitions. Cannabis has unrealistic expectations.
food processing
TOP PICK
Diageo PLC
It is being impacted by CoVid19 because sales are down in China and fewer travelers aren't buying them. They have great brands, margins and solid dividend growth. They should do well in a recessionary environment. It is a great opportunity to get into a great business that has been too expensive for a while. (Analysts’ price target is $179.61)
food processing
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Diageo PLC(DEO-N) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 3

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 3

Total Signals / Votes : 6

Stockchase rating for Diageo PLC is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Diageo PLC(DEO-N) Frequently Asked Questions

What is Diageo PLC stock symbol?

Diageo PLC is a American stock, trading under the symbol DEO-N on the New York Stock Exchange (DEO). It is usually referred to as NYSE:DEO or DEO-N

Is Diageo PLC a buy or a sell?

In the last year, 6 stock analysts published opinions about DEO-N. 3 analysts recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Diageo PLC.

Is Diageo PLC a good investment or a top pick?

Diageo PLC was recommended as a Top Pick by on . Read the latest stock experts ratings for Diageo PLC.

Why is Diageo PLC stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Diageo PLC worth watching?

6 stock analysts on Stockchase covered Diageo PLC In the last year. It is a trending stock that is worth watching.

What is Diageo PLC stock price?

On 2024-12-03, Diageo PLC (DEO-N) stock closed at a price of $118.945.