Diageo plc (DEO) Stock Analysis
Recovery setup
Consumer Defensive · Beverages - Wineries & Distilleries
Sell if holding. At $79.82, A.R:R 1.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 1.8): -1.0; Consecutive earnings misses (2).
Diageo plc, together with its subsidiaries, engages in the production, marketing, and distribution of alcoholic beverages in North America, Europe, the Asia Pacific, Latin America and Caribbean, and Africa. It offers beer, scotch, gin, vodka, rum, liqueur, raki, wine, Irish and... Read more
Sell if holding. At $79.82, A.R:R 1.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 1.8): -1.0; Consecutive earnings misses (2). Chart setup: Death cross but MACD improving, RSI 61. Score 4.9/10, high confidence.
Passes 4/7 gates (clean insider activity, no SEC red flags, earnings proximity 98d clear, semi cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: moderate.
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
3 floor-breakers
Revenue shrinking — -4.0% YoY. Growth thesis broken unless recovery story develops.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $79.82, A.R:R 1.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 1.8): -1.0; Consecutive earnings misses (2). Chart setup: Death cross but MACD improving, RSI 61. Prior stop was $76.55. Score 4.9/10, high confidence.
Take-profit target: $90.11 (+12.9% upside). Prior stop was $76.55. Stop-loss: $76.55.
Leverage penalty (D/E 1.8): -1.0; Consecutive earnings misses (2); Weak overall score: 4.9/10.
Diageo plc trades at a P/E of 17.9 (forward 12.0). TrendMatrix value score: 6.9/10. Verdict: Sell.
31 analysts cover DEO with a consensus score of 3.9/5. Average price target: $104.
What does Diageo plc do?Diageo plc, together with its subsidiaries, engages in the production, marketing, and distribution of alcoholic...
Diageo plc, together with its subsidiaries, engages in the production, marketing, and distribution of alcoholic beverages in North America, Europe, the Asia Pacific, Latin America and Caribbean, and Africa. It offers beer, scotch, gin, vodka, rum, liqueur, raki, wine, Irish and Canadian whisky, US and Indian whisky, Chinese whisky, cachaça, tequila, brandy, and Chinese white spirit beverages. The company also provides ready-to-drink and non-alcoholic beverages. Its principal brands include Johnnie Walker, Don Julio, Guinness, Crown Royal, Smirnoff, Baileys, Captain Morgan, Casamigos, Shui Jing Fang, and McDowell's. The company was formerly known as Guinness plc and changed its name to Diageo plc in February 1998. The company was incorporated in 1886 and is headquartered in London, the United Kingdom.