DEO Stock Analysis: Buy, Sell, or Hold?
DEO - Diageo plc
$82.16
3.46 (4.40%)
▲
5d:
-0.54%
30d:
+3.63%
90d:
+10.09%
BUY
HIGH Confidence
Analysis Updated: Jul 2, 2026 12:00 AM ET
Earnings: Aug 06, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: DEO shows strong fundamentals and good volume confirmation. Solid entry point despite slightly high pricing.
✅ BUY SIGNAL: DEO shows strong fundamentals and good volume confirmation. Solid entry point despite slightly high pricing.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$85.55
Based on 0.9% avg growth
INTRINSIC VALUE TODAY
$53.12
Trading above historical range
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 12.9x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DEO is currently trading at $82.16, which is considered slightly high relative to its 30-day fair value range of $79.26 to $83.32. The stock's valuation (Forward PE: 12.9) is in line with its historical norms (12.9). At these levels, the market is pricing in 0.1% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.
Technical Outlook: Technically, DEO is in a downtrend. Immediate support is located at $78.59, while resistance sits at $87.48. The stock is showing strong short-term momentum, up 4.4% recently.
Market Sentiment: DEO has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $100.43 (+22.2%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, DEO is in a downtrend. Immediate support is located at $78.59, while resistance sits at $87.48. The stock is showing strong short-term momentum, up 4.4% recently.
Market Sentiment: DEO has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $100.43 (+22.2%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY HIGH
Historical Trading Range
$79.26 -
$83.32
Company Quality Score
51/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
81.9%
All Signals
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Strong upward momentum (+4.4%)
- BULLISH: Trading 22.2% below Wall St target ($100.43)
- NEUTRAL: Market pricing in 0.1% annual earnings growth - fairly valued
Trading Range Analysis
30-Day Trading Range
$79.26 -
$83.32
Current vs Trading Range
SLIGHTLY HIGH
Support & Resistance Levels
Support Level
$78.60
Resistance Level
$87.48
Current Trend
Downtrend
Technical data as of
Jun 9, 2026
Fundamental Context
Forward P/E (Next Year Est.)
12.94
Wall Street Target
$100.43
(+22.2%)
Revenue Growth (YoY)
-4.0%
Earnings Growth (YoY)
2.9%
Profit Margin
12.2%
Valuation Premium vs History
+0.1% premium
PE vs Historical
12.9 vs 12.9
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+0.1%
(market-implied from PE analysis)
1-Year Target
$82.24
(+0%)
2-Year Target
$82.32
(+0%)
3-Year Target
$82.41
(+0%)
3-Yr Target (if PE normalizes)
(PE: 13→13)
PE COMPRESSION
$82.15
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: -2.2%)
$129.46
(+58%)
Base:
(SPY PE: 12.9, Growth: -2.2%)
$76.92
(-6%)
Bear:
(PE: 11.0, Growth: -2.2%)
$65.38
(-20%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (18x PE), but valuation improves significantly next year (13x PE) as earnings recover.
Trailing PE: 18.18 | Current EPS (TTM): $4.33
Bull Case
$126.93
(+55%)
Analyst growth 46.6%, PE expands to 20.0
Base Case
$115.39
(+40%)
Market implied 46.6%, PE stable at 18.2
Bear Case
$53.52
(-35%)
Severe decline -20.0%, PE contracts to 15.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: July 03, 2026 9:46 PM ET
Data refreshes hourly during market hours. Next update: 10:46 PM
Data refreshes hourly during market hours. Next update: 10:46 PM
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Technical Signals Check
Is DEO showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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