DEO Stock Analysis: Buy, Sell, or Hold?
DEO - Diageo plc
$88.51
0.45 (0.51%)
▲
5d:
+3.93%
30d:
+7.73%
90d:
+11.05%
BUY
MODERATE Confidence
Analysis Updated: Jul 31, 2026 12:00 AM ET
Earnings: Aug 04, 2026
0d
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: DEO shows positive signals but monitor for confirmation. Market pricing in 2.8% annual growth which appears achievable. Moderate conviction.
💡 BUY OPPORTUNITY: DEO shows positive signals but monitor for confirmation. Market pricing in 2.8% annual growth which appears achievable. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$83.07
Based on 0.5% avg growth
INTRINSIC VALUE TODAY
$51.58
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 $88.51, which is considered extended relative to its 30-day fair value range of $80.64 to $85.67. The stock's valuation (Forward PE: 14.1) is in line with its historical norms (12.9). At these levels, the market is pricing in 2.8% 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 strong uptrend. The price is approaching resistance at $90.12. 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 $101.43 (+14.6%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, DEO is in a strong uptrend. The price is approaching resistance at $90.12. 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 $101.43 (+14.6%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$80.64 -
$85.67
Company Quality Score
52/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
60.5%
All Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($101.43)
- NEUTRAL: Market pricing in 2.8% annual earnings growth - fairly valued
Trading Range Analysis
30-Day Trading Range
$80.64 -
$85.67
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$81.41
Resistance Level
$90.13
Current Trend
Strong Uptrend
Technical data as of
Aug 3, 2026
Fundamental Context
Forward P/E (Next Year Est.)
14.07
Wall Street Target
$101.43
(+14.6%)
Revenue Growth (YoY)
-4.0%
Earnings Growth (YoY)
2.9%
Profit Margin
12.2%
Valuation Premium vs History
+2.8% premium
PE vs Historical
14.1 vs 12.9
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+2.8%
(market-implied from PE analysis)
1-Year Target
$90.99
(+3%)
2-Year Target
$93.54
(+6%)
3-Year Target
$96.15
(+9%)
3-Yr Target (if PE normalizes)
(PE: 14→13)
PE COMPRESSION
$88.15
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.7, Growth: -3.0%)
$118.84
(+34%)
Base:
(SPY PE: 14.1, Growth: -3.0%)
$80.66
(-9%)
Bear:
(PE: 12.0, Growth: -3.0%)
$68.56
(-23%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (20x PE), but valuation improves significantly next year (14x PE) as earnings recover.
Trailing PE: 20.38 | Current EPS (TTM): $4.32
Bull Case
$141.05
(+59%)
Analyst growth 45.6%, PE expands to 22.4
Base Case
$128.22
(+45%)
Market implied 45.6%, PE stable at 20.4
Bear Case
$59.88
(-32%)
Severe decline -20.0%, PE contracts to 17.3
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: August 03, 2026 11:37 PM ET
Data refreshes hourly during market hours. Next update: 12:37 AM
Data refreshes hourly during market hours. Next update: 12:37 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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