Diageo plc ADR (DEO) stock expected to rise by 50.73%: What’s driving the optimism?

A share price of Diageo plc ADR [DEO] is currently trading at $121.08, up 0.88%. An important factor to consider is whether the stock is rising or falling in short-term value. The DEO shares have lost -3.44% over the last week, with a monthly amount drifted -5.48%, and not seem to be holding up well over a long-time horizon.

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From an analyst’s perspective:

Diageo plc ADR [NYSE: DEO] stock has seen the most recent analyst activity on July 12, 2024, when Goldman downgraded its rating to a Sell. Previously, Citigroup upgraded its rating to Buy on July 03, 2024. On January 12, 2024, downgrade downgraded it’s rating to Underperform. Argus downgraded its rating to a Hold. UBS downgraded its rating to a Sell. JP Morgan downgraded its rating to Neutral for this stock on November 29, 2023. In a note dated September 15, 2023, TD Cowen initiated an Market Perform rating.

Diageo plc ADR experienced fluctuations in its stock price throughout the past year between $119.74 and $175.06. Currently, Wall Street analysts expect the stock to reach $182.5 within the next 12 months. Diageo plc ADR [NYSE: DEO] shares were valued at $121.08 at the most recent close of the market. An investor can expect a potential return of 50.73% based on the average DEO price forecast.

Analyzing the DEO fundamentals

Trailing Twelve Months sales for Diageo plc ADR [NYSE:DEO] were 20.29B which represents -1.86% decline. Gross Profit Margin for this corporation currently stands at 0.6% with Operating Profit Margin at 0.29%, Pretax Profit Margin comes in at 0.25%, and Net Profit Margin reading is 0.19%. To continue investigating profitability, this company’s Return on Assets is posted at 0.08, Equity is 0.45 and Total Capital is 0.16. Upon thorough examination of the company’s fundamental financial framework, it becomes apparent that the debt-to-equity ratio stands at 2.19.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 119.81 points at the first support level, and at 118.53 for the second support level. However, for the 1st resistance point, the stock is sitting at 122.03, and for the 2nd resistance point, it is at 122.97.

Ratios To Look Out For

To put it in perspective, the Current Ratio for Diageo plc ADR [NYSE:DEO] is 1.53. On the other hand, the Quick Ratio is 0.55, and the Cash Ratio is 0.14. Considering the valuation of this stock, the price to sales ratio is 3.31, the price to book ratio is 6.70 and price to earnings (TTM) ratio is 17.50.

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