Diageo (DEO) Stock – Current Investor Update

By Tamara Parker • Thursday, July 31 15:26 • Permanent Link

One of the losers of today's trading session was Diageo. Shares of the Beverages company plunged -4.6%, and some investors may be wondering if its price of $98.12 would make a good entry point. Here's what you should know if you are considering this investment:

Diageo has moved -16.3% over the last year, and the S&P 500 logged a change of 16.8%
DEO has an average analyst rating of buy and is -20.04% away from its mean target price of $122.71 per share
Its trailing earnings per share (EPS) is $6.46
Diageo has a trailing 12 month Price to Earnings (P/E) ratio of 15.2 while the S&P 500 average is 29.3
Its forward earnings per share (EPS) is $7.18 and its forward P/E ratio is 13.7
The company has a Price to Book (P/B) ratio of 21.19 in contrast to the S&P 500's average ratio of 4.74
Diageo is part of the Consumer Staples sector, which has an average P/E ratio of 25.91 and an average P/B of 3.03
DEO has reported YOY quarterly earnings growth of -11.7% and gross profit margins of 0.6%
The company has a free cash flow of $1.54 Billion, which refers to the total sum of all its inflows and outflows of cash over the last quarter
Diageo plc, together with its subsidiaries, engages in the production, marketing, and sale of alcoholic beverages. The company offers scotch, gin, vodka, rum, raki, liqueur, wine, tequila, Chinese white spirits, cachaça, and brandy, as well as beer, including cider and flavored malt beverages. It also provides Chinese, Canadian, Irish, American, and Indian-Made Foreign Liquor whiskies, as well as flavored malt beverages, ready to drink, and non-alcoholic products. The company provides its products under the Johnnie Walker, Crown Royal, J&B, Buchanan's, Smirnoff, Cîroc, Ketel One, Captain Morgan, Baileys, Don Julio, Casamigos, Tanqueray, Guinness, Shui Jing Fang, Yenì, McDowell's, Don Papa, Aviation American, Seagram, Seagram's 7 Crown, Zacapa, Black Dog, Black & White, Signature, Royal Challenge, Godawan, Antiquity, Gordon's, Old Parr, Windsor, Bundaberg, Ypióca, Bulleit, and Bell's brand names. It operates in the United States, the United Kingdom, Türkiye, Australia, Korea, India, Greater China, Brazil, Mexico, South Africa, Nigeria, and internationally. The company was incorporated in 1886 and is headquartered in London, the United Kingdom.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.