DEO Stock Analysis: Buy, Sell, or Hold?
DEO - Diageo plc
$92.80
1.76 (1.93%)
ā²
BUY
MODERATE Confidence
Last Updated: January 30, 2026
Earnings: Feb 25, 2026
23d
Get Alerted When DEO Hits Your Target Price
Join 10,000+ traders who never miss a move
You're in! Check your email to confirm and set your target price.
100% Free
No spam, ever
Unsubscribe anytime
Interactive Price Chart (1 Month)
Loading chart...
Loading historical data...
Bottom Line:
š” BUY OPPORTUNITY: DEO shows positive signals but monitor for confirmation. Market pricing in 1.3% growth. Moderate conviction.
š” BUY OPPORTUNITY: DEO shows positive signals but monitor for confirmation. Market pricing in 1.3% growth. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$105.83
Based on 3.5% avg growth
INTRINSIC VALUE TODAY
$65.71
Trading above fair value
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 13.4x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DEO is currently trading at $92.80, which is considered extended relative to its 30-day fair value range of $86.47 to $90.74. The stock's valuation (Forward PE: 13.9) is in line with its historical norms (13.4). At these levels, the market is pricing in 1.3% annual earnings growth.
Technical Outlook: Technically, DEO is in a strong downtrend. The price is approaching resistance at $92.91. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: DEO has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $104.86 (+13.0%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, DEO is in a strong downtrend. The price is approaching resistance at $92.91. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: DEO has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $104.86 (+13.0%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
EXTENDED
Fair Price Range
$86.47 -
$90.74
Company Quality Score
65/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
62.9%
All Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($104.86)
- BULLISH: Expecting earnings turnaround to 1.3% growth with 0.4% revenue growth
Fair Price Analysis
30-Day Fair Range
$86.47 -
$90.74
Current vs Fair Value
EXTENDED
Support & Resistance Levels
Support Level
$86.95
Resistance Level
$92.91
Current Trend
Strong Downtrend
Fundamental Context
Forward P/E (Next Year Est.)
13.92
Wall Street Target
$104.86
(+13.0%)
Revenue Growth (YoY)
0.4%
Earnings Growth (YoY)
-74.7%
Profit Margin
11.6%
Valuation Premium vs History
+1.3% premium
PE vs Historical
13.9 vs 13.4
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+1.3%
(market-implied from PE analysis)
1-Year Target
$94.01
(+1%)
2-Year Target
$95.23
(+3%)
3-Year Target
$96.47
(+4%)
3-Yr Target (if PE normalizes)
(PE: 14ā13)
PE COMPRESSION
$92.85
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.3, Growth: 2.9%)
$162.02
(+75%)
Base:
(SPY PE: 13.9, Growth: 2.9%)
$101.15
(+9%)
Bear:
(PE: 11.8, Growth: 2.9%)
$85.98
(-7%)
š
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (21x PE), but valuation improves significantly next year (14x PE) as earnings recover.
Trailing PE: 21.03 | Current EPS (TTM): $4.22
Bull Case
$154.21
(+66%)
Analyst growth 58.0%, PE expands to 23.1
Base Case
$140.19
(+51%)
Market implied 58.0%, PE stable at 21.0
Bear Case
$60.35
(-35%)
Severe decline -20.0%, PE contracts to 17.9
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Last updated: February 01, 2026 2:41 AM ET
Data refreshes hourly during market hours. Next update: 3:41 AM
Data refreshes hourly during market hours. Next update: 3:41 AM
š„ Top Stocks Breaking Out Now
| Ticker | Score | Recommendation | Change % |
|---|
Technical Signals Check
Is DEO showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
Top Rated Beverages - Wineries & Distilleries Stocks
Top-rated stocks in Beverages - Wineries & Distilleries by analyst ratings.
| Stock | Analyst Consensus | Analyst Target | Tradestie Score |
|---|---|---|---|
|
MGPI
MGP Ingredients Inc |
STRONG BUY
6 analysts |
$35 | 59 HOLD |
Advanced DEO Option Strategies
Professional options setups generated by AI based on today's DEO price and gamma walls.
