DEO Stock Analysis: Buy, Sell, or Hold?
DEO - Diageo plc
$83.51
0.90 (1.09%)
▲
5d:
+3.8%
30d:
-3.52%
90d:
+13.25%
BUY
HIGH Confidence
Analysis Updated: Jun 26, 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 fair pricing.
✅ BUY SIGNAL: DEO shows strong fundamentals and good volume confirmation. Solid entry point despite fair 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 $83.51, which is considered fair relative to its 30-day fair value range of $79.39 to $84.30. The stock's valuation (Forward PE: 13.2) is in line with its historical norms (12.9). At these levels, the market is pricing in 0.7% 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.
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 $99.71 (+19.4%). 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.
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 $99.71 (+19.4%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$79.39 -
$84.30
Company Quality Score
53/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
81.9%
All Signals
- NEUTRAL: Price in fair range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($99.71)
- NEUTRAL: Market pricing in 0.7% annual earnings growth - fairly valued
Trading Range Analysis
30-Day Trading Range
$79.39 -
$84.30
Current vs Trading Range
FAIR
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.)
13.15
Wall Street Target
$99.71
(+19.4%)
Revenue Growth (YoY)
-4.0%
Earnings Growth (YoY)
2.9%
Profit Margin
12.2%
Valuation Premium vs History
+0.7% premium
PE vs Historical
13.2 vs 12.9
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+0.7%
(market-implied from PE analysis)
1-Year Target
$84.09
(+1%)
2-Year Target
$84.68
(+1%)
3-Year Target
$85.28
(+2%)
3-Yr Target (if PE normalizes)
(PE: 13→13)
PE COMPRESSION
$83.63
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: -2.2%)
$129.46
(+55%)
Base:
(SPY PE: 13.2, Growth: -2.2%)
$78.18
(-6%)
Bear:
(PE: 11.2, Growth: -2.2%)
$66.46
(-20%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (19x PE), but valuation improves significantly next year (13x PE) as earnings recover.
Trailing PE: 19.08 | Current EPS (TTM): $4.33
Bull Case
$133.24
(+60%)
Analyst growth 46.6%, PE expands to 21.0
Base Case
$121.13
(+45%)
Market implied 46.6%, PE stable at 19.1
Bear Case
$56.17
(-33%)
Severe decline -20.0%, PE contracts to 16.2
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: June 28, 2026 10:48 AM ET
Data refreshes hourly during market hours. Next update: 11:48 AM
Data refreshes hourly during market hours. Next update: 11:48 AM
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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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