Анализ фундаментальных метрик компании Diageo plc показывает, что текущая долговая нагрузка значительно превышает медианную по отрасли, что создает повышенные риски для инвесторов. При этом показатели рентабельности, такие как ROE и ROA, остаются на уровне 0, что указывает на отсутствие прибыли и нестабильность в операционной деятельности. Несмотря на наличие достаточно высокой ликвидности, выраженной в текущем коэффициенте, другие показатели, такие как рентабельность продаж и EBITDA, демонстрируют отрицательную динамику. Дивидендная доходность, хотя и присутствует, не компенсирует отсутствие роста выручки и чистой прибыли. В целом, компания сталкивается с серьезными проблемами в своих финансовых показателях, что обуславливает необходимую корректировку в оценке ее целевой цены. Необходимость пересмотра прогноза связана с негативными показателями, которые не соответствуют ожиданиям по сравнению с отраслевыми стандартами.

Diageo plc

Key Points
Diageo cited weakness among U.S. consumers for underwhelming results.
Management cut the dividend and lowered guidance.
The first half dividend was cut by more than half, year over year.
Diageo (NYSE: DEO) released its semi-annual financial update this week, and the results had investors bailing on the stock. Shares of the global alcoholic beverages company sank 10.8% this week, according to data provided by S&P Global Market Intelligence.
The results weren't what the company had previously expected, either. Now, management has lowered its guidance and cut the dividend. That sums up why investors decided to sell shares this week.
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Dividend cut
The owner of the Guinness, Smirnoff, and Johnnie Walker brands had previously said it expected organic sales to be about flat in 2026 versus 2025. For the first half of the fiscal 2026, though, organic sales sank 2.8%. That led the company to cut its year-end guidance.
Maybe more importantly for income investors, Diageo also cut its dividend. The company declared $0.20 per share, even though it had paid $0.405 per share in the first half of fiscal 2025. Dividends are typically viewed as a commitment from the company to investors seeking income. A dividend cut can be considered a breach of trust on top of the income decline.
After a sharp 32% decline last year, Diageo's stock was recovering this year. Word of weakness in the U.S. market wiped out most of that recover this week, however. The company has now slashed its dividend to aid in a turnaround plan.
It will provide more financial flexibility and help support the balance sheet, but that isn't what some investors wanted to hear. It's not surprising that a lower income stream and a weakened business environment led investors to move on from Diageo stock this week.
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Why Diageo Stock Cratered This Week

Key Points
Diageo saw organic sales and adjusted earnings per share decline by 3% in the first half of 2026, falling short of analysts' expectations.
It also announced it was cutting its dividend by more than half, prioritizing balance sheet strength.
Diageo remains a leader in the spirits industry, however, and is starting to look like an intriguing value stock at a lower-than-normal valuation.
Shares of leading global spirits juggernaut Diageo (NYSE: DEO) sank 15% as of 11 a.m. ET after the company reported earnings for the first half of 2026. Organic sales and adjusted earnings per share (EPS) each declined by 3% in the first half of the year and came up shy of Wall Street's expectations. However, the development that most likely harmed Diageo's share price the most was management's decision to roughly halve its dividend payments to reinforce its balance sheet. Following today's drop, Diageo's shares are now down 60% from their all-time high in 2021.
While the company saw solid sales growth in Africa and Latin America, rising 11% and 5%, respectively, North America and Asia Pacific declined by 7% and 11%, offsetting the growth in its emerging markets. Management pointed to North American weakness stemming from consumer affordability issues. While probably true, investors should also note that Diageo faces other longer-term headwinds, such as moderation increases, GLP-1 impacts, cannabis encroaching upon the industry, and Gen Z's shift away from alcohol. This decline is much more than just a soft macroeconomic environment.
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That said, Diageo remains the No. 1 operator in the global spirits industry and is home to 13 brands with $1 billion in sales. Furthermore, the company continuously innovates, testing new ready-to-drink options, collaborations, and non-alcoholic beer and spirits. This innovation has helped the company maintain its market share despite the turbulent environment. Now trading with an EV/EBITDA ratio of just 11 compared to its five-year average of 19 -- and 2.4 times sales (its lowest mark since the Great Recession) -- Diageo deserves a long look from value-oriented investors.
Now that the company has ripped the band-aid off regarding its dividend payments, its yield will likely drop from above 4% to roughly 2%. However, this added financial flexibility should only help the company's turnaround, as it can lower its $22 billion net debt balance. Diageo isn't my type of investment, but I can certainly see its appeal to value investors who don't believe the alcohol industry is in terminal decline.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Diageo Stock Is Sinking Further Down Today

(RTTNews) - Alcoholic beverage maker Diageo plc (DEO, DGE.L) reported Wednesday slightly higher pre-tax profit in its first half of fiscal 2026, despite weak net sales. Further, the firm decided to reduce its dividend, and also trimmed fiscal 2026 organic outlook.
In the overnight trading, the shares were losing around 2.2 percent, trading at $99.85.
In the first half, profit before taxation edged up to $2.79 billion from last year's $2.77 billion.
Profit attributable to equity shareholders of the parent company grew 3.1 percent to $2 billion from $1.94 billion a year ago. Basic earnings per share improved 3 percent to 89.7 cents from 87.1 cents last year.
Adjusted basic earnings per share were 95.3 cents, compared to 97.7 cents a year ago.
Net sales for the half year were down 4 percent to $10.46 billion from prior year's $10.90 billion, due to the decline in organic net sales of 2.8 percent and the negative impact of acquisitions and disposals of 1.8 percent.
Strong growth in Europe, LAC and Africa was more than offset by softer performance in North America, the company noted.
Further, Diageo said its Board has decided to reduce the dividend to a more appropriate level to accelerate the strengthening of the balance sheet and create more financial flexibility. The Board has also set a minimum floor for the dividend of 50 cents per annum.
The interim dividend of 20 cents per share, compared to prior year's 40.50 cents per share, will be paid to holders of ordinary shares and US ADRs on register as of April 17. The interim dividend will be paid on June 4.
Looking ahead for fiscal 2026, the company now projects organic net sales to be down 2 percent to 3 percent given further weakness in the US, and including the impact of Chinese white spirits. The company previously expected organic net sales growth to be flat to slightly down.
Further, organic operating profit growth is now expected to be flat to up low-single-digit, compared to previous view of growth in low to mid-single digit.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Diageo H1 Pre-tax Profit Edges Up, Sales Down; Cuts Dividend, FY26 Outlook

Diageo Plc DEO is scheduled to release interim results for the first half of fiscal 2026 on Feb. 25. The company has been witnessing difficulties in North America and the Asia Pacific regions, which are expected to have negatively impacted the company’s performance in the first half of fiscal 2026. However, Diageo has been experiencing strong momentum across Europe, Latin America and the Caribbean (LAC), and Africa, as reflected in its first-quarter fiscal 2026 update provided last month.
Key Factors to Note Ahead of DEO’s 1H26 Earnings
Diageo delivered a mixed start to fiscal 2026, with first-quarter organic net sales broadly flat despite positive volume growth. The divergence between volume and price/mix reflected pronounced regional and category shifts, particularly weakness in Chinese white spirits (CWS) and softer U.S. spirits demand.
DEO has been facing troubles in its key markets, including North America and the Asia Pacific, particularly Greater China. The headwinds in North America mainly relate to declines in U.S. Spirits due to soft consumption trends, tough tequila comparisons and increased promotional intensity.
The Asia Pacific has been the most pressured region, with Greater China witnessing sharp declines due to reduced baijiu category consumption occasions linked to policy impacts, significantly dragging regional performance. Additionally, beer route-to-market adjustments in Australia and China created near-term disruption. However, the company has been witnessing positive trends in India, which is likely to have partly offset the weakness in the Asia Pacific region.
On its fiscal 2025earnings call management cautioned that the fiscal 2026 performance will be weighted toward the second half of the year, indicating weak organic net sales and operating profit trends in the first half of fiscal 2026.
On its first-quarter fiscal 2026 update, the company reiterated that the decline in organic net sales is expected to be more pronounced in the first half, reflecting continued pressure from CWS and a softer U.S. consumer environment. Management also expected organic operating profit to decline in the first half before strengthening in the second, supported by improving market mix, phasing of marketing investments, and a greater contribution from Accelerate program savings later in the fiscal year.
However, DEO has been experiencing solid business momentum, strong consumer demand and market share gains, which have been boosting its performance. DEO is anticipated to have retained the strength in its business on constant premiumization efforts and favorable industry trends, particularly in the spirits category.
Despite the ongoing challenges, strength in Europe, LAC and Africa is expected to have aided the company’s performance in the first half of fiscal 2026. Trends in Europe have been bright, driven by continued strong momentum in Guinness and resilient execution despite a subdued spirits backdrop. Pricing in Türkiye and strength in Guinness are expected to support a favorable mix.
In LAC, the company is benefiting from positive trends in Brazil amid a stabilizing consumer environment. Performance in Mexico is expected to have been broadly stable, while positive price/mix trends across much of the region are expected to have aided the results. In Africa, DEO continues its strong trajectory with growth across key markets, though market mix pressured pricing.
Diageo’s Price Performance & Valuation
DEO shares have exhibited an uptrend, rising as much as 9.1% in the past three months, outperforming the S&P 500 index’s growth of 3.2%. However, the Zacks Rank #4 (Sell) stock has underperformed the broader industry’s growth of 23.3% and the Consumer Staples sector’s return of 13.5% in the same period.
DEO’s 3-Month Stock Price Performance
Image Source: Zacks Investment Research
From the valuation standpoint, DEO trades at a forward 12-month P/E multiple of 14.88X, underperforming the industry average of 16.89X and the S&P 500’s average of 22.51X. Diageo’s valuation appears quite cheap compared with the industry at current levels.
Image Source: Zacks Investment Research
Looking for Lucrative Picks? Check These
Here are some companies you may want to consider this earnings season.
Fomento Economico Mexicano FMX, alias FEMSA, is likely to register top and bottom-line growth when it reports fourth-quarter 2025 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $12.4 billion, indicating 24.6% growth from the prior-year quarter. FMX currently has a Zacks Rank #3 (Hold) and an Earnings ESP of +3.92%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for FEMSA’s quarterly earnings has moved down by a penny in the past 30 days to $1.53 per share. The consensus estimate suggests a 232.6% earnings upsurge from the year-ago quarter’s reported number. FMX has delivered a negative earnings surprise of 28.1%, on average, in the trailing four quarters.
Monster Beverage Corporation MNST is expected to register top and bottom-line growth when it reports fourth-quarter 2025 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.05 billion, suggesting 13% growth from the prior-year quarter. The company currently has a Zacks Rank of 3 and an Earnings ESP of +8.31%.
The Zacks Consensus Estimate for Monster Beverage’s quarterly earnings has moved down by a penny in the past seven days to 49 cents per share. The consensus estimate suggests 29% earnings growth from the year-ago quarter’s reported number. MNST has delivered an earnings surprise of 5.5%, on average, in the trailing four quarters.
Celsius CELH currently has a Zacks Rank #3 and an Earnings ESP of +6.46%. CELH is anticipated to register top and bottom-line growth when it reports fourth-quarter 2025 results. The Zacks Consensus Estimate for Celsius’ quarterly revenues is pegged at $638.2 million, indicating growth of 92.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Celsius’ bottom line has moved up by a penny in the past 30 days to 19 cents per share. The consensus estimate for CELH suggests growth of 35.7% from the year-ago quarter’s reported figure. CELH has delivered an earnings surprise of 42.9%, on average, in the trailing four quarters.
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Diageo 1H26 Earnings Ready to Unfold: What Are the Chances of a Beat?

In trading on Wednesday, shares of Diageo plc (Symbol: DEO) crossed above their 200 day moving average of $99.84, changing hands as high as $100.43 per share. Diageo plc shares are currently trading up about 1.3% on the day. The chart below shows the one year performance of DEO shares, versus its 200 day moving average:
Looking at the chart above, DEO's low point in its 52 week range is $84.52 per share, with $116.69 as the 52 week high point — that compares with a last trade of $100.57.
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
Also see:
Institutional Holders of HYKE
KR Historical Stock Prices
HDRO Options Chain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Diageo Breaks Above 200-Day Moving Average - Bullish for DEO

An updated edition of the Sept. 26, 2025, article.
The sin stock market refers to a segment of the equity market made up of companies whose core businesses are often considered unethical, controversial or socially undesirable by parts of society. These typically include firms involved in alcohol, tobacco, gambling, weapons and cannabis. Despite moral objections, sin stocks remain a well-defined and actively traded investment category.
From an investment standpoint, sin stocks function like any other equities, but they occupy a unique position in the market. Many institutional investors, pension funds and ESG-focused funds exclude them due to ethical guidelines or regulatory restrictions. This reduced investor participation can lead to lower valuations and higher dividend yields, creating potential opportunities for return-focused investors.
Why Some Investors Choose Sin Stocks
Some investors choose sin stocks primarily for their financial characteristics rather than their social perception. Companies in industries such as alcohol, tobacco, gambling and firearms often generate stable and predictable cash flows, supported by consistent demand that tends to hold up even in economic slowdowns. This resilience makes sin stocks appealing to investors seeking defensive exposure and earnings visibility.
Another key attraction is valuation and income potential. Because many institutional and ESG-focused investors exclude sin stocks, these companies can trade at lower valuation multiples compared with the broader market. At the same time, strong cash generation enables many sin stock companies to offer above-average dividend yields and steady share buyback programs, enhancing total shareholder returns.
Pricing power also plays a role. Sin stock companies frequently operate in highly regulated markets with high barriers to entry, allowing established players to pass on cost increases through price hikes. This dynamic helps protect margins and supports long-term profitability, even in inflationary environments.
Additionally, sin stocks often exhibit low correlation with economic cycles, making them useful portfolio diversifiers. While growth sectors may struggle in recessions, consumption of alcohol, tobacco or gaming tends to remain relatively consistent.
Ultimately, investors who choose sin stocks do so with a pragmatic mindset, prioritizing risk-adjusted returns, income stability and diversification. For these investors, ethical concerns are weighed against financial objectives, and sin stocks represent a deliberate strategy rather than a moral endorsement of the underlying businesses.
Trends in Sin Stock Sectors
Sin stocks have long intrigued investors for their mix of resilience and controversy. Sin stock sectors continue to evolve as regulation, consumer preferences and technology reshape demand and long-term investment potential.
Alcohol companies such as Diageo Plc DEO benefit from premiumization and steady global demand, while ready-to-drink offerings support growth. Tobacco leaders like Philip Morris International PM are transitioning toward reduced-risk products, including heated tobacco, to offset declining cigarette volumes.
Gambling stocks are benefiting from online betting and digital gaming legalization, driving structural growth. Weapons and firearms stocks remain cyclical, influenced by geopolitical tensions and regulatory uncertainty. Cannabis continues to be a high-growth but volatile segment, shaped by legalization momentum, pricing pressure and uneven profitability.
If you are looking to capitalize on this trend, our Sin Stocks Screen makes it easy to identify high-potential stocks such as Boyd Gaming Corporation BYD, Universal Corporation UVV and Constellation Brands, Inc. STZ.
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Boyd Gaming’s long-term investment appeal is anchored in its diversified regional gaming portfolio, disciplined capital allocation and resilient customer base. Management emphasized that the core Las Vegas Locals, and Midwest & South segments continue to deliver stable visitation and spend, supported by loyalty-driven play and a focus on value-oriented customers. Boyd’s strategy prioritizes operational efficiency, targeted property reinvestment and margin protection, enabling consistent free cash flow generation even in a normalized demand environment.
The company is also positioning for growth through selective development and digital gaming exposure, while maintaining a conservative balance sheet. Management highlighted flexibility to deploy capital toward share repurchases, debt reduction and high-return investments, reinforcing shareholder returns. With limited new supply in its core markets and a loyal customer mix, the Zacks Rank #2 (Buy) company is well-positioned for steady earnings growth and cash flow durability in the long term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Universal Corp’s investment case is supported by its strong market position in global tobacco sourcing and growing diversification into value-added ingredients. In the first half of fiscal 2026, UVV delivered 3% revenue growth and an 18% increase in operating income, reflecting disciplined execution in a firm demand environment. Its Tobacco Operations segment continues to benefit from balanced supply-demand dynamics, favorable product mix and low uncommitted inventory levels, supporting earnings stability.
At the same time, Universal Corp is investing in long-term growth through its Ingredients Operations, backed by expanded production capacity and a robust pipeline of value-added products. A strong balance sheet, declining net debt and focus on sustainability initiatives further enhance the Zacks Rank #3 (Hold) company’s ability to generate durable cash flows and steady shareholder returns over the long term.
Constellation Brands’ fundamental strength lies in its dominant position in the U.S. high-end beer category, supported by industry-leading brands such as Modelo, Corona and Pacifico. Despite a pressured consumer backdrop, STZ continues to outperform the beer category and gain market share across 49 of 50 states, underscoring strong brand equity and customer loyalty. The company’s strategy emphasizes pricing discipline, cost-saving initiatives and optimized price-pack architecture, which have helped sustain the beer operating margins even amid volume and cost headwinds.
STZ’s 7 million hectoliter capacity expansion through fiscal 2028, modular capital deployment and focus on distribution gains support structural growth. Strong cash flows and operational flexibility reinforce its ability to drive durable earnings and shareholder returns.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Sin Stocks: Controversial Yet Cash-Generative Plays for Smart Investors

Key Points
Alcohol consumption has been dropping sharply among younger generations, and that's a multidecade trend.
Those same younger adult consumers are more active in financial markets and prediction markets than prior generations, which bodes well for Robinhood.
Robinhood is delivering exceptional growth across key financial products while boosting trading volume on its platform.
Diageo (NYSE: DEO) is an alcoholic beverage company that's seeing a bad time for the industry. Gen Zers and millennials are curbing their drinking habits, and the trend has played out for multiple decades. Alcoholic beverage companies have relied heavily on baby boomers for sales, but as they age, that formula leaves questions about Diageo's long-term potential.
The company's stock is down by almost 30% over the past year. The bad performance coincides with a 0.1% revenue decline and 1.7% year-over-year organic sales growth in fiscal 2025, which ended June 30. And in the following quarter, reported next sales fell by 2.2%, while organic sales were flat. These weak results explain why the stock has struggled, and the outlook doesn't point to a meaningful recovery. In its latest earnings release, management pointed to "a softer U.S. consumer environment than planned for." That does not bode well for the company's near future.
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For investors looking to pick stocks that are benefiting from consumer trends rather than losing ground due to them, Robinhood (NASDAQ: HOOD) might be a better option. Gen Z appears more focused than previous generations on investing, prediction markets, and saving money. These three options have varying risk levels, and Robinhood serves them all.
Here's what else you should know about the fintech stock.
Prediction markets are heating up
Although Gen Z isn't drinking as much, they are the dominant demographic behind the rise of online sports betting. Gen Z and millennials have been chasing speculative assets for some time now in the hopes of striking it rich, and financial institutions have benefited from this trend.
Robinhood doesn't technically offer sports betting, but it does run a prediction market that includes event contracts for sporting events. The line between sports betting sites and prediction markets is thin -- both allow investors to put money on the line and profit if the outcome plays out as they predicted.
Event contracts relating to professional and college football games became available on Robinhood in August. Since that launch, trading volume on Robinhood's prediction market has surged. Total contracts traded more than doubled sequentially to 2.3 billion in Q3, and speculators traded 2.5 billion contracts in October. This hot segment should continue to experience meaningful demand as more types of event contracts are added.
Investing activity continues to act as a major catalyst
Prediction markets aren't the only catalyst that is propelling Robinhood's business and its stock. Transaction-based revenue increased by 129% year over year in Q3, including crypto-related revenue that more than quadrupled year over year.
The pickup in investment activity also comes with higher margin balances. Robinhood told investors in its Q3 press release that its interest income increased by 66% year over year. Lower short-term interest rates offset some of the impact of high balances, but the results still reflected meaningful trading volume increases and highlighted interest as a source of recurring revenue for Robinhood.
So, while Gen Z isn't drinking as much, more of its members are involved in financial markets. Companies like Robinhood are better positioned for long-term stock gains than alcoholic beverage giants like Diageo.
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Marc Guberti has no position in any of the stocks mentioned. The Motley Fool recommends Diageo Plc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

1 Stock I'd Buy Before DEO in 2026

(RTTNews) - Asahi Group Holdings (ASBRF.PK) has made the decision to acquire, 100% of the shares in Diageo Kenya Limited with a consideration of approximately 365.2 billion yen, and 53.68% of the shares in UDV Kenya Limited with a consideration of approximately 100.2 billion yen, from two subsidiaries of Diageo plc. The company has entered into a separate sale and purchase agreement with each of the two Diageo subsidiaries. Through the Transaction, Asahi will indirectly acquire 65.00% of the shares in East African Breweries which markets beer, spirits and RTD beverages in Kenya, Uganda and Tanzania. Asahi Group stated that it currently has no intention of acquiring the publicly traded shares of East African Breweries beyond a 65.00% shareholding, and intends to maintain EABL's listings.
East African Breweries is listed on the securities exchanges in Kenya, and is cross-listed in Uganda and Tanzania, and 35.00% of its shares are held by public shareholders.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Asahi To Indirectly Acquire 65.00% Of Shares In East African Breweries

For Immediate Release
Chicago, IL – December 15, 2025 – Zacks Equity Research shares Gold Fields Ltd. (GFI), as the Bull of the Day and, Diageo DEO, as the Bear of the Day. In addition, Zacks Equity Research provides analysis on — Micron Technology, Inc. MU, Palantir Technologies Inc. PLTR and NVIDIA Corp. NVDA.
Here is a synopsis of all three stocks:
Gold Fields Ltd. is one of the market’s premier gold mining companies having outperformed the broad market and industry average on all look back periods since 2014. GFI is the eighth largest producer of gold in the world, with mines operating in Australia, Chile, Ghana, Peru and South Africa and Canada. Over the last five years the stock has compounded at an average annual rate of 38%, bolstered in part by the bull market in gold, but also in its high-level operating leverage.
Gold Fields enjoys one of the best fundamental setups among the gold mining sector, with some of the highest growth forecast for its top and bottom line, complimented by a bargain valuation and institutional level scale. In addition to robust fundamentals, the stock is also showing signs of technical strength; both GFI stock and gold itself are forming compelling bullish patterns.
Finally, Gold Fields has experienced significant upgrades to its earnings estimates, giving it a Zacks Rank #1 (Strong Buy) rating. These catalysts all together make Gold Fields a worthy consideration for investors looking to gain exposure to gold and diversify away from the stock market.
Tailwinds for Gold Mining Stocks
Gold remains in a powerful bull market, rising more than 60% this year and outperforming major equity indexes since 2019. The backdrop driving this strength, persistent geopolitical uncertainty, rising global tensions, and elevated fiscal risks, has only intensified. There is little indication that these forces will ease anytime soon. At the same time, global central banks have been accumulating gold at the fastest pace in decades, creating a structural source of demand that supports higher prices.
As noted earlier, both the underlying commodity and GFI are forming bullish technical patterns. In the chart below, we can see that GFI broke out and then pulled back into its prior range. The key levels to watch remain the upper boundary near $44 and the lower boundary around $37.50. A decisive close above or below these levels would signal the direction of the next major move. Given the strong buying flows into gold and gold-linked equities, I continue to favor an upside resolution.
Gold Fields Limited Shares Trade at a Discount to Growth
Gold Fields is delivering one of the strongest growth profiles in the precious metals industry. The company is expected to increase sales by 79% this year and an additional 26.5% next year, while earnings are projected to grow at an impressive 51.4% annually over the next three to five years. Few miners are generating that kind of multi-year growth outlook.
Despite this exceptional trajectory, GFI trades at a forward earnings multiple of just 14.2x. That is meaningfully below the industry average of roughly 19x and sits right in line with the company’s own long-term historical valuation. When a business with this level of earnings acceleration trades at a multiple this low, the result is a deeply discounted PEG ratio. In Gold Fields’ case, the PEG stands at just 0.28, signaling that investors are paying very little for an extremely high rate of earnings expansion.
Should Investors Buy Shares in GFI?
Gold Fields offers a rare blend of high growth, strong operating leverage, and an attractive valuation. The company is expanding faster than most of its peers, yet its shares still trade at a meaningful discount to the industry. With gold in a powerful uptrend and GFI forming bullish technical patterns, the stock appears well-positioned for further gains.
For investors seeking exposure to gold, a hedge against market volatility, or simply a high-quality growth story within the mining sector, Gold Fields stands out as a compelling opportunity.
One of the most surprising consumer trends in recent years has been the sharp decline in alcohol consumption, particularly among younger generations. Alcohol usage in America has dropped from 60% in 2023 to just 54% today, the lowest level recorded since tracking began in 1939.
Not surprisingly, spirits sales volumes in the US have stagnated, with surveys showing a growing share of consumers cutting back on or eliminating alcohol altogether. This shift has created a difficult operating environment for legacy alcohol companies like Diageo.
Diageo shares have reflected those challenges, severely underperforming the already underperforming industry and the market year-to-date as both earnings and sales growth expectations trend lower. Even after such a decline, DEO still doesn’t trade an especially discounted valuation as earnings shrink. Until Diageo can reinvent its portfolio to align with shifting consumer preferences, or the alcohol consumption trend reverses, investors may be better off avoiding the name.
Diageo Shares Fall on Continuous Earnings Downgrades
Diageo currently holds a Zacks Rank #5 (Strong Sell), reflecting a steady stream of downward earnings revisions over the past two months. The weakness is not new. As the chart below shows, analysts have been cutting earnings estimates consistently since mid-2022, and the company has struggled to regain momentum.
This decline in estimates mirrors the company’s fundamental performance. Both sales and earnings have followed the same downward trend over the last two years, which has naturally weighed on the stock price. Since 2022, revenue has been essentially flat, with no meaningful growth expected this year or next. Earnings have fared even worse, falling roughly 20% over the same period, and forecasts show little sign of improvement going forward.
With deteriorating fundamentals, stagnant demand trends, and persistent estimate cuts, Diageo’s near-term outlook remains challenged conditions that continue to justify the stock’s current Zacks Rank and the ongoing pressure on its share price.
Should Investors Avoid DEO Stock?
Given the persistent decline in alcohol consumption, stagnant sales trends, and steady stream of earnings downgrades, Diageo’s challenges appear far from temporary. The company is facing both structural headwinds in consumer behavior and company-specific pressure on growth and margins. With no meaningful recovery in revenue or earnings expected in the near term, and valuations still not compelling relative to the risk, Diageo offers little justification for new investment.
Until the company can reposition its portfolio to match shifting consumer preferences or demonstrate a credible path back to growth, DEO is likely to remain under pressure. For now, investors may be better served focusing on areas of the market where fundamentals are improving rather than deteriorating.
Additional content:
Top 3 AI Stocks, Including NVIDIA to Buy Now for 2026 Growth
Like in 2025, the rapid growth of artificial intelligence (AI) is expected to persist in 2026 and beyond, driving demand for AI hardware, software and cloud infrastructure worldwide. Micron Technology, Inc., Palantir Technologies Inc. and NVIDIA Corp. have already ridden the AI wave and are well poised to gain from the expanding trend, making them attractive investment opportunities for the year ahead. Let’s see in detail –
Micron Raises Outlook as HBM Demand Booms, Delivering Strong FY25
Micron’s status as the sole U.S.-based memory manufacturer has given the company a distinct advantage to ride the accelerating AI wave. That’s why Micron’s CEO, Sanjay Mehrotra, said that the company “is entering fiscal 2026 with strong momentum.”
The incessant demand for Micron’s high-bandwidth memory (HBM) chips, which can curb power consumption and process large volumes of data, has driven the company’s performance in fiscal 2025. In the fiscal fourth quarter, Micron reported revenues of $11.32 billion, an increase from $7.75 billion in the prior year. For the full fiscal year, revenues reached $37.38 billion, up from $25.11 billion in the previous year, according to investors.micron.com.
Strong demand for HBM chips prompted Micron to raise its fiscal first-quarter revenue outlook to $12.5 billion. Micron’s cloud memory business also showed signs of improvement, and the company reported a net income of $8.54 billion for fiscal 2025. On this optimism, Micron’s estimated earnings growth rate for the next fiscal year is a solid 24.4%.
Palantir Sees Strong Growth as AIP Soars in U.S. Markets
A larger number of clients, both from the U.S. commercial sector and government segment, are adopting Palantir’s successful Artificial Intelligence Platform (AIP). The growing demand for AIP is expected to fuel the company’s revenue growth and profitability.
Palantir has already raised its fourth-quarter sales outlook to between $1.327 billion and $1.331 billion. For the full fiscal year, the revenue guidance has been increased to between $4.396 billion and $4.400 billion, as mentioned on investors.palantir.com.
In the third quarter, Palantir’s revenues were $1.18 billion, up 63% year over year and 18% sequentially. U.S. commercial segment revenues were $397 million for the quarter, up 121% year over year and 29% quarter over quarter. Government revenues came in at $486 million, up 52% from last year and 14% from last quarter.
Thus, the rise in U.S. commercial clientele indicated future growth potential, and an increase in government contracts strengthened barriers to entry. Banking on this optimism, Palantir’s projected earnings growth rate for the next year is a promising 42.5%.
AI Hardware and GPU Demand Boost NVIDIA’s Growth
NVIDIA’s competitive advantage in the AI hardware market, coupled with consistent demand for its CUDA software platform, is expected to drive growth. The recent green signal from the Trump administration allowing NVIDIA to ship H200 AI chips to “approved customers” in China is likely to boost growth.
Additionally, NVIDIA is well-positioned to sell its popular computing hardware, as global data center capital expenditures are projected to reach $3 trillion to $4 trillion annually by 2030, according to the company.
Meanwhile, incessant demand for NVIDIA’s innovative Blackwell chips and cloud graphics processing units (GPUs) has boosted its fiscal third-quarter 2026 revenues to $57 billion, up 62% year over year and 22% quarter over quarter, citing investor.nvidia.com.
What’s more, the company anticipates fiscal fourth-quarter 2026 revenues to reach about $65 billion, with a margin of plus or minus 2%. Due to all these positives, NVIDIA’s expected earnings growth rate for next year is an encouraging 52.4% (read more: NVIDIA or BigBear.ai: Which AI Stock Has Bigger Upside in 2026?).
Currently, NVIDIA and Micron sport a Zacks Rank #1 (Strong Buy), while Palantir has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
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Gold Fields and Diageo have been highlighted as Zacks Bull and Bear of the Day

Diageo (DEO), the global spirits giant behind brands like Johnnie Walker, Guinness, and Tanqueray, has been struggling to keep up with the market. Compounding the challenges, Diageo's stagnant sales growth over the past three years raises serious concerns.
Additionally, the company has declining earnings estimates over the last year, indicating continued bearishness from analysts and giving it a Zacks Rank #5 (Strong Sell) rating. DEO stock has significantly underperformed both its industry peers and the broader market, raising alarms about its near-term prospects.
Image Source: Zacks Investment Research
Diageo Sales Stall and Earnings Estimates Fall
Diageo’s revenue growth has remained sluggish over the past few years, struggling to gain momentum. As shown in the revenue chart, sales have hovered within a narrow range, with no significant growth since 2021. This stagnation is concerning, particularly for a company that relies on premium branding and global expansion to drive revenue.
The weak top-line performance is now reflected in Diageo’s earnings outlook. Analysts have unanimously lowered earnings expectations for both this year and next year. Estimates for this year decreased by 4.2% and 3.5% the next year.
With falling earnings estimates and a stock price that continues to underperform, Diageo appears to be facing structural challenges that are likely to limit its upside potential in the near term.
Image Source: Zacks Investment Research
Diageo Fights Demographic Shifts
One of the biggest headwinds facing Diageo is the changing drinking habits of younger consumers. Simply put, young people are drinking less than previous generations, posing a long-term challenge for alcohol producers.
A 2023 Gallup survey highlights this shift, showing that the percentage of adults under 35 who say they drink alcohol has declined from 72% in 2001-2003 to just 62% in 2021-2023. This drop reflects broader lifestyle changes, with younger generations placing a higher emphasis on health and wellness, as well as a greater willingness to experiment with alcohol-free alternatives.
Should Investors Avoid DEO Stock?
With stagnant sales growth, declining earnings estimates, and shifting consumer trends working against it, Diageo faces significant challenges in the near term. The company’s premium branding has historically been a strength, but younger consumers’ changing drinking habits and increased competition from non-alcoholic alternatives could weigh on long-term growth.
Until Diageo can reignite sales growth or show a reversal in earnings trends, investors may want to steer clear of DEO stock and look for stronger opportunities elsewhere.
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