Diageo выглядит как зрелый защитный бизнес с устойчивой ликвидностью, но с заметно ослабленной рентабельностью по представленным данным. Текущий current ratio 1.60 выше медианы отрасли, а cash on hand вырос до 2.72 млрд, что поддерживает краткосрочную финансовую устойчивость. При этом quick ratio 0.71 всё ещё ниже отраслевого ориентира, поэтому запас прочности без учёта запасов не идеален. Долговая нагрузка остаётся высокой: debt/equity 1.64 существенно выше медианы, а long-term debt вырос до 21.57 млрд, что повышает чувствительность оценки к ставкам и рефинансированию. Собственный капитал также увеличился до 13.18 млрд, но это не компенсирует общий уровень обязательств в 36.14 млрд. Самый слабый блок — прибыльность: ROE, ROA, ROI и net income по данным равны нулю, что не позволяет подтвердить эффективную генерацию дохода на капитал и активы. На этом фоне операционная база выглядит слабой, поскольку operating income, EBITDA и revenue в предоставленном наборе также не демонстрируют положительной динамики. Дивидендная доходность около 0.98% выглядит умеренной и не является сильным аргументом для переоценки, особенно на фоне слабой прибыли. Отсутствие доступных TTM-мультипликаторов P/E, P/S, P/B и P/FCF ограничивает точность оценки, но сам факт отсутствия подтверждённой прибыли делает премию к оценке менее оправданной. В сумме фундаментал скорее поддерживает осторожный, слегка понижательный взгляд на целевую цену, чем аргументирует её повышение. Для инвестора это означает, что бумага остаётся качественным defensive-активом, но без убедительного импульса по эффективности и прибыли, который обычно нужен для расширения мультипликаторов.

Diageo plc

У Diageo сильнее ликвидность, но слабая прибыльность и высокая долговая нагрузка; фундаментал скорее оправдывает осторожное снижение оценки.

Key Points
Diageo maintains a vast global reach with a portfolio of over 200 brands sold across nearly 180 countries.
Brown-Forman demonstrates high profitability with net margins exceeding 20% and a robust current ratio.
Which spirits giant offers the better value proposition for retail investors heading into 2026?
The spirits industry is undergoing a shift as consumer preferences evolve, leaving investors to choose between global diversification and specialized brand power. This comparison evaluates whether Diageo (NYSE:DEO) or Brown-Forman (NYSE:BFB)(NYSE:BFA) is the better buy.
Diageo operates as a global leader with an expansive reach in the premium drinks market, while Brown-Forman focuses on a concentrated portfolio of world-renowned American whiskey brands. Both companies are core holdings in many consumer defensive portfolios, offering stability through established brand loyalty and consistent cash generation.
The case for Diageo
Diageo sells a diverse range of over 200 brands, including Johnnie Walker, Smirnoff, and Guinness, to consumers in almost 180 countries. The company operates across major geographic regions like North America, Europe, Africa, and Asia Pacific. As a significant player among beverage stocks, the business relies on its massive global distribution network to reach a wide variety of customer segments.
In FY 2025, revenue reached nearly $20.2 billion, a slight decline of approximately 0.1% from the prior year. The company reported net income of roughly $2.4 billion for the period. This resulted in a net margin of close to 11.6%, a notable decrease from the 19.1% net margin achieved during the 2024 fiscal year.
According to its June 2025 balance sheet, the debt-to-equity ratio was roughly 2.2x. This indicates that total debt is 2.2 times shareholder equity. The current ratio, which measures the ability to cover short-term debts with current assets, was approximately 1.6x. Free cash flow, which is cash from operations minus capital expenditures, was nearly $2.7 billion.
The case for Brown-Forman
Brown-Forman produces and markets recognizable brands such as Jack Daniel’s, Woodford Reserve, and Herradura. It distributes these products in over 170 markets and employs roughly 5,000 people worldwide. In FY 2025, the company's two largest customers accounted for approximately 13% and 11% of consolidated net sales, respectively. Customer concentration like this adds a layer of risk to the business.
During FY 2025, total revenue was approximately $4.0 billion, a 4.9% decrease from the prior fiscal year. Despite the revenue dip, the company reported net income of roughly $869.0 million. This performance supported a net margin of about 21.9%, indicating the percentage of revenue remaining as profit after all expenses are paid.
As of its April 2025 balance sheet, the debt-to-equity ratio was approximately 0.7x. This shows that total debt is less than the company's shareholder equity. The current ratio was roughly 3.9x, suggesting a strong capacity to meet short-term financial obligations. Free cash flow for the fiscal period was nearly $431.0 million.
Risk profile comparison
Diageo faces intense competition from other global spirits producers like Pernod Ricard and LVMH. The company is also subject to strict international regulations regarding the production, marketing, and sale of alcohol. Changes in excise taxes or trade policies in major regions, such as North America or Europe, could negatively impact total sales and profitability.
Brown-Forman relies heavily on the Jack Daniel’s family of brands for its primary revenue, meaning any loss of consumer relevance would materially affect the business. The company also faces risks from trade policies and retaliatory tariffs on American whiskey, which have historically impacted international margins. Furthermore, major brands are distilled at single locations, leaving the company vulnerable to disruptions from catastrophic events at those facilities while competing with rivals like Constellation Brands.
Valuation comparison
Brown-Forman currently carries a lower Forward P/E compared to Diageo, though Diageo offers a more attractive P/S ratio based on its high total revenue.
Forward P/E
17.0x
15.2x
24.8x
P/S ratio
2.2x
3.0x
Sector benchmark uses the SPDR XLP sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
As of 2025, the number of U.S. adults who drink alcohol dipped to 54% -- the lowest score in Gallup’s 90 years of measuring the statistic. For young adults aged 18-34 and households under $40,000 annually, these figures plummet to 50% and 39%, respectively, showing that younger generations are not only less interested in drinking but might also lack the financial confidence to spend money on something that used to be largely considered a “staple” good.
Amid these struggles, Diageo and Brown-Forman’s shares have fallen by 64% and 69% over the last five years, leaving the companies to trade at once-in-a-decade low valuations. Thanks to these incredibly low valuations -- as highlighted above by their forward P/E and P/S ratios -- I think it is worth watching these two deeply discounted stocks.
However, neither stock has a clear catalyst to drive its shares higher, so I would rather wait to see some improvement in sales and profitability in upcoming earnings calls before considering a buy. That said, if results improve over the next couple of quarters, I’d be more interested in buying Diageo, as it has a bit of a strong sales tilt toward international markets, which haven’t seen drinking drop off as dramatically.
Furthermore, Diageo has a history of acquisitions, which could put it in a position of power today, as many liquor and alcohol stocks have sold off dramatically. The company could add to its portfolio of drinks at a discount and potentially restart its growth story internationally with a shrewd deal or two.
Ultimately, I’m not in a huge rush to buy either Diageo or Brown-Forman -- I really want to see some improved results first. However, I’d rather look to buy Diageo and its variable 4.2% dividend yield, as its industry-leading scale should help it thrive if and when drinking rates rebound.
Should you buy stock in Diageo Plc right now?
Before you buy stock in Diageo Plc, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Diageo Plc wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Brands, Diageo Plc, and Lvmh Moët Hennessy - Louis Vuitton, Société Européenne. 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.

Diageo vs. Brown-Forman: Which Consumer Goods Stock Is a Better Buy in 2026?

Key Points
Greg Abel and his team cut 16 positions from the total equity portfolio.
These were all small positions, including some long-time holdings like Visa and Mastercard.
The new portfolio still includes the Buffett favorites and is more concentrated in the higher-conviction positions.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Greg Abel has been with Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) for 26 years, since the holding company acquired MidAmerican Energy. He rose through the company's ranks and was hand-picked by Warren Buffett to take over when he retired, and that happened earlier this year.
Although he's been CEO of Berkshire Hathaway for several months, the 2026 first quarter was his first in the top position. The first-quarter 13F Securities and Exchange Commission (SEC) filing reporting the company's positions gives investors a glimpse into how Abel is managing its $330 billion equity portfolio.
Abel has put his clear imprint on the portfolio, although he hasn't departed radically from Buffett's style. There were several notable changes, including new positions in Delta Airlines and Macy's and a tripling of the position in Alphabet.
Also notable was that Abel sold out of 16 positions. There had been prior reports that he'd sold out of the positions managed by former investing manager Todd Combs, and Abel had also let shareholders know in his first annual report back in February that he would focus on a concentrated group of high-conviction stocks.
All the stocks Berkshire Hathaway sold
Abel and his team sold out of the following stocks in the first quarter:
Allegion
Amazon
Aon
Atlanta Braves Holdings
Charter Communications
Diageo
Domino's Pizza
Heico
Lamar Advertising
Liberty Latin America Series A
Liberty Latin America Series C
Liberty Formula 1
Mastercard
Pool Corp.
UnitedHealth Group
Visa
These were all smaller positions, including newer holdings like UnitedHealth and Heico as well as stocks that had been in the portfolio for years, such as Visa and Mastercard. The largest position was Visa, which had been 1.1% of the portfolio before the sell-off.
It's still Berkshire Hathaway
Not including investments in Japan, the portfolio is left with 29 positions. These include Buffett's favorite stocks: Apple, American Express, and Coca-Cola, the top three positions, plus Moody's, which Buffett has also cited as an example of an excellent company.
While the selling of positions, about a third of Berkshire's total, makes the portfolio look very different, the Buffett flavor is still strong. Abel didn't sell any of the bank stocks, which have always featured strongly in the portfolio, and he kept a large group of financial stocks, such as American Express.
Macy's and Delta both fit into the classic Buffett schema, and Delta has been in the portfolio before. The standout from the quarter is the major investment in Alphabet, but investors shouldn't be too surprised. Buffett was already a big Apple fan, so there's a precedent for investing in the right kind of tech stock.
The report confirms that Abel isn't out to change the company's equity model, and Berkshire Hathaway's sagging stock ticked higher on the news.
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American Express is an advertising partner of Motley Fool Money. Jennifer Saibil has positions in American Express and Apple. The Motley Fool has positions in and recommends Alphabet, Amazon, American Express, Apple, Atlanta Braves Holdings, Berkshire Hathaway, Domino's Pizza, Heico, Mastercard, Moody's, and Visa. The Motley Fool recommends Delta Air Lines, Diageo Plc, Pool, and UnitedHealth Group. 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.

These Are All of the Stocks Greg Abel, Warren Buffett's Successor, Dumped in the First Quarter

Key Points
Abel exited 16 positions in Q1, most of which Berkshire Hathaway hadn't owned very long.
Amazon and UnitedHealth Group were two especially surprising stocks sold.
Both of these stocks should have solid prospects going forward.
Warren Buffett once said that his "favorite holding period is forever." His successor, Greg Abel, might seem to have a much shorter preferred holding period, based on Berkshire Hathaway's (NYSE: BRKA) (NYSE: BRKB) investment activity in the first quarter of 2026.
With Abel at the helm, Berkshire completely exited a whopping 16 positions in Q1. Such a flurry of selling was practically unheard of during Buffett's tenure as CEO. And two of the stocks that Abel dumped were especially big surprises.
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Berkshire's not-so-sweet 16
Liberty is in shorter supply in Berkshire's portfolio after Abel's Q1 moves. He sold all of Berkshire's stakes in Liberty Latin America Class A (NASDAQ: LILA), Liberty Latin America Class C (NASDAQ: LILAK), and Liberty Media's Formula One Group Series C (NASDAQ: FWONK) tracking stock. Berkshire also exited its position in Atlanta Braves Holdings (NASDAQ: BATRK), which was previously a Liberty Media tracking stock.
Abel ditched several financial stocks. Berkshire's new CEO authorized the full sale of risk, retirement, and health solutions provider Aon (NYSE: AON). Credit card processing giants Mastercard (NYSE: MA) and Visa (NYSE: V) are also gone from the conglomerate's portfolio.
A couple of food and beverage stocks were among the positions Berkshire exited in Q1. British alcoholic beverage maker Diageo (NYSE: DEO) has been part of the portfolio since the first quarter of 2023. Domino's Pizza (NASDAQ: DPZ) was an even shorter-lived position, with Berkshire initiating a new position in the third quarter of 2024.
Berkshire had not owned several other stocks that Abel dumped in Q1 for very long. The conglomerate first purchased Heico (NYSE: HEIA) and Pool Corp. (NASDAQ: POOL) in 2024. It initiated positions in Allegion (NYSE: ALLE), Lamar Advertising (NASDAQ: LAMR), and UnitedHealth Group (NYSE: UNH) in 2025.
However, not all of the positions exited last quarter were relatively recent purchases. Charter Communications (NASDAQ: CHTR) had been in Berkshire's portfolio since 2016, and Amazon (NASDAQ: AMZN) since 2019.
The two most surprising exits
There's one theory as to why Abel decided to sell these 16 stocks that makes sense to me. These stocks could have all been positions managed by Todd Combs, who served for years as one of Buffett's two investment managers. However, Combs left Berkshire at the beginning of 2026 to join JPMorgan Chase (NYSE: JPM). I think that two of the positions exited in Q1 were still surprising, though.
Buffett has praised Amazon in the past. He even once said that he had "been an idiot for not buying" the stock earlier. Amazon has a strong moat in e-commerce. It's the top provider of cloud services. Amazon has been a solid winner for Berkshire, too.
There were only two caveats to Buffett's favorite holding period being forever. First, the companies must have "outstanding businesses." Second, they must have "outstanding managements." Amazon checks off both boxes.
UnitedHealth Group is the other surprising full sale, in my opinion. The health insurance stock seems to be exactly what Buffett (and, presumably, Abel) prefers to own. UnitedHealth generates strong cash flow. It's cheaper than it has been historically because of temporary headwinds.
Are Amazon and UnitedHealth stocks buys?
I fully understand that Abel may have wanted to do some portfolio housecleaning, especially with stocks that Combs formerly managed. The 16 stocks sold also weren't huge positions for Berkshire.
However, it's a mistake for other investors to sell any of these stocks just because Buffett's successor did. I think Amazon and UnitedHealth Group are excellent stocks to buy, not sell.
Amazon has significant growth opportunities as artificial intelligence (AI) adoption continues. The company is preparing to launch its Amazon Leo satellite internet service later this year. I expect Leo to be a solid growth driver.
UnitedHealth Group should continue to recover from the higher-than-expects medical costs experienced last year. The company avoided a major problem when the Centers for Medicare & Medicaid Services finalized Medicare Advantage rates that were significantly higher than the preliminary numbers proposed. I think that UnitedHealth remains a quintessential Buffett stock.
To paraphrase an old saying, "One person's trash is another person's treasure." Abel has thrown Amazon and UnitedHealth to the curb, but both stocks could make other investors plenty of money over the long term.
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JPMorgan Chase is an advertising partner of Motley Fool Money. Keith Speights has positions in Amazon, Berkshire Hathaway, and Mastercard. The Motley Fool has positions in and recommends Amazon, Atlanta Braves Holdings, Berkshire Hathaway, Domino's Pizza, Heico, JPMorgan Chase, Mastercard, and Visa. The Motley Fool recommends Diageo Plc, Pool, and UnitedHealth Group. 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.

Warren Buffett's Successor Greg Abel Dumped 16 Stocks in Q1: Here Are the 2 Biggest Surprises

Key Points
Diageo’s stock was cut in half over the past year.
Its stock looks cheap, but it deserves its discount valuation.
Diageo (NYSE: DEO), one of the world's biggest producers of alcoholic beverages, was once a stable blue chip consumer staples stock. But over the past 12 months, its stock has declined nearly 30%. Over the past five years, its stock has been cut in half. Let's see why Diageo's stock plummeted -- and whether it's worth buying as the bulls look the other way.
What happened to Diageo?
Diageo sells more than 200 brands of spirits, beers, and non-alcoholic drinks across nearly 180 countries. Its top brands include Johnnie Walker, Crown Royal, Casamigos, Smirnoff, Don Julio, and Guinness. Its biggest and most important market is the United States, which accounted for 29% of its top line in fiscal 2025 (which ended last June).
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
The U.S. was traditionally Diageo's top market for premium spirits. But over the past few years, its spirits sales in the U.S. cooled as consumers either drank less or shifted to cheaper brands. The tariffs against Europe and Latin America exacerbated that pressure. To make matters worse, U.S. retailers ordered too much tequila in 2022 and 2023 (expecting its pandemic-driven demand to continue), while smaller brands fragmented the already saturated market.
Diageo's overseas sales have also been a mixed bag. It's still growing in Latin America, Africa, and Europe, but its sales in Asia (especially China) are declining. As a result, its top sales declined in fiscal 2023 and fiscal 2024 before finally stabilizing in fiscal 2025.
Metric
FY 2023
FY 2024
FY 2025
U.S. Sales Growth
(1%)
(4%)
1%
Total Sales Growth
(5%)
(3%)
0%
But in the first half of fiscal 2026, Diageo's organic net sales fell nearly 3%, as its 7% drop in North America and an 11% decline in Asia Pacific (mainly due to its declining sales of Baijiu and other Chinese wine spirits) offset its steady growth in Latin America, Africa, and Europe.
For the full year, it expects its organic net sales to decline 2%-3%. Analysts expect its total net sales to decrease 3% in fiscal 2026 and 1% in fiscal 2027.
Can Diageo turn its business around?
To cushion that blow, Diageo reduced its quarterly dividend by 80% to $0.20 per share (a 1% forward yield) this February and began pruning its workforce.
CEO Dave Lewis, who took the helm at the start of the year, plans to implement additional cost-cutting measures, divest some of its weaker assets, realign its orders with market demand, and rebalance its pricing to stabilize its business. However, analysts still expect its adjusted EPS to decline 1% in both fiscal 2026 and fiscal 2027.
Diageo's biggest problems are tough to overcome. Its premiumization strategy in the U.S., which had worked for years, could be impossible to restart as alcohol consumption rates decline. As it cuts its prices, it will need to compete more aggressively with other struggling alcoholic beverage companies, such as Constellation Brands (NYSE: STZ).
But if Diageo stabilizes its U.S. business, works through the tequila market's messy inventory issues, and expands in its higher-growth emerging markets, its sales and profits might rise again. If that happens, its stock might be a bargain at 12 times forward earnings. Constellation, which faces similar existential challenges, also trades at 12 times forward earnings.
Where will Diageo's stock be in a year?
Diageo isn't down for the count yet, but it won't resolve its biggest issues or raise its dividend again within the next few quarters. Therefore, I expect its stock to either stagnate or sink lower over the next 12 months and underperform other blue chip consumer staples stocks.
Should you buy stock in Diageo Plc right now?
Before you buy stock in Diageo Plc, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Diageo Plc wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $490,864!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,216,789!*
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*Stock Advisor returns as of May 5, 2026.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Brands and 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.

Diageo Stock Continues to Sink -- What Investors Need to Know

Key Points
It's an entirely new era for Berkshire Hathaway, with longtime CEO Warren Buffett retiring on Dec. 31 and his understudy, Greg Abel, taking the reins.
The Oracle of Omaha and Abel share similar investment philosophies, right down to devoting an outsize share of capital to their best ideas.
Many of the billion-dollar wagers in Berkshire's portfolio are driven by sustainable competitive advantages.
This year marks a new era in Berkshire Hathaway's (NYSE: BRKA)(NYSE: BRKB) storied history. After leading Berkshire for well over half a century and seeing the company he built reach a $1 trillion market cap, billionaire Warren Buffett retired as CEO on Dec. 31.
The person responsible for filling some impossibly big shoes is the Oracle of Omaha's longtime understudy, Greg Abel. Abel has been with Berkshire for over a quarter-century, and he has a nose for value just like his predecessor.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Although Buffett remains chairman of the board, Berkshire Hathaway's day-to-day operations, including the management and oversight of its $320 billion investment portfolio, fall to Abel. As of the closing bell on April 16, Berkshire's new boss has the final say over 48 positions.
Greg Abel's portfolio is highly concentrated in 10 core holdings
Warren Buffett's and Greg Abel's investment philosophies are very similar. In addition to value being of the utmost importance, both favor robust capital-return programs, strong management teams, and companies with sustainable competitive advantages.
Perhaps most importantly, Berkshire's former and current bosses believe in apportioning an outsize percentage of the company's capital into their best ideas. Just 10 positions account for nearly 79% of Berkshire Hathaway's invested assets:
Bank of America: $27,680,505,428
Chevron: $24,488,919,510
Occidental Petroleum: $15,067,219,181
Chubb: $11,248,116,681
Several of these "best idea" stocks share similarities. For instance, all 10 pay dividends to their shareholders, with some also actively repurchasing their shares. Apple has the largest share repurchase program on Wall Street, with the iPhone maker spending roughly $841 billion since 2013 to retire over 44% of its outstanding shares.
Buffett and Abel also view seven out of these 10 core positions as indefinite holdings. With the exception of Bank of America, Chevron, and Chubb, the remaining seven companies are expected to be fixtures in Berkshire's portfolio for decades to come. This includes Coca-Cola, American Express, and Moody's, the three longest-tenured holdings that are currently generating annual yields on cost of 63%, 45%, and 41%, respectively.
Investors can see Abel's influence among these 10 core holdings, as well. Abel is a huge fan of Japan's five trading houses, commonly known as the "sogo shosha," and was instrumental in building up sizable stakes in Mitsubishi and Mitsui.
Berkshire Hathaway has 20 additional billion-dollar wagers
On top of overseeing 10 positions that range from nearly $11 billion to $60 billion, Abel is responsible for 20 additional billion-dollar wagers in Berkshire Hathaway's $320 billion investment portfolio:
Itochu: $8,542,909,322
Kraft Heinz: $7,356,090,539
Alphabet: $5,996,660,635 (Class A shares, GOOGL)
Marubeni: $5,859,803,545
DaVita: $4,458,799,656
Sumitomo: $4,304,149,575
Kroger: $3,388,500,000
Constellation Brands: $2,135,250,000
Tokio Marine Holdings: $2,110,853,256
UnitedHealth Group: $1,594,518,050
Capital One Financial: $1,435,076,500
Nucor: $1,229,326,646
Ally Financial: $1,216,840,000
Aon: $1,208,228,343
Liberty Live Series C: $1,060,323,236
You'll note that the other three members of the sogo shosha are in this grouping (Itochu, Marubeni, and Sumitomo), and that they collectively make up five of Berkshire's 16 largest holdings by market value.
But what really stands out about these billion-dollar wagers is the emphasis on sustainable competitive advantages. For instance, Sirius XM and VeriSign operate as legal monopolies. Sirius XM is the only licensed satellite radio operator, while VeriSign is the registrar of ".com" and ".net" domains. Growth may not be off the charts for either company, but they possess unmatched competitive edges.
Abel is also overseeing close to $4.7 billion in combined investments in payment facilitators Visa and Mastercard. Whereas many of their peers double dip and act as lenders, Visa and Mastercard are solely focused on collecting merchant fees for facilitating payments. This means neither Visa nor Mastercard has to worry about setting aside capital for credit delinquencies or loan losses during periods of economic turbulence.
And we can't forget about Domino's Pizza, which is a stock the Oracle of Omaha added to for six consecutive quarters leading up to his retirement. Domino's ability to build consumers' trust and its track record of meeting or exceeding five-year growth initiatives made it a go-to investment for Berkshire's now-retired billionaire boss.
Abel's smaller holdings
Rounding things out are the 18 relatively smaller holdings that Greg Abel oversees, ranging from $5 million to approximately $692 million:
Pool Corp.: $692,463,211
Lennar: $626,124,360
Liberty Live Series A: $471,581,627
Louisiana-Pacific: $410,754,140
The New York Times Co.: $394,621,458
Heico Class A: $279,726,815
Liberty Formula One Series C: $271,488,837
Charter Communications: $250,336,326
Lamar Advertising: $162,505,712
Allegion: $110,404,422
NVR: $74,490,292
Liberty Latin America Series A: $20,227,853
Jefferies Financial Group: $20,186,460
Diageo: $18,229,110
Lennar Class B: $15,685,537
Liberty Latin America Series C: $11,055,412
Atlanta Braves Holdings Series C: $5,230,043
Many of these "smaller" positions fall into two categories: companies that have been reduced or are being removed from Berkshire's investment portfolio, or investments made by Ted Weschler or Todd Combs, the latter of whom left Berkshire to join JPMorgan Chase in December 2025.
For example, Berkshire's stake in e-commerce and cloud infrastructure services titan Amazon was slashed by 77% during the December-ended quarter. Historically, a 77% reduction in a mid-tier position in Berkshire Hathaway's portfolio has been a strong signal that a company would soon be getting the heave-ho. Though Amazon is historically inexpensive relative to its future cash flow, it's not a value stock in the traditional sense of the term -- and that may be a problem for Greg Abel.
While it's possible that some of these smaller positions can eventually become billion-dollar wagers, these investments are better viewed as trading opportunities for Weschler and his team.
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Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Ally is an advertising partner of Motley Fool Money. Sean Williams has positions in Alphabet, Amazon, Bank of America, Mastercard, Sirius XM, and Visa. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Atlanta Braves Holdings, Berkshire Hathaway, Chevron, Domino's Pizza, Heico, JPMorgan Chase, Jefferies Financial Group, Lennar, Mastercard, Moody's, NVR, The New York Times Co., VeriSign, and Visa and is short shares of Apple. The Motley Fool recommends Capital One Financial, Constellation Brands, Diageo Plc, Kraft Heinz, Kroger, Occidental Petroleum, Pool, and UnitedHealth Group. 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.

Here Are All 48 Stocks Warren Buffett's Successor, Greg Abel, Is Overseeing in Berkshire Hathaway's $320 Billion Portfolio

Players in the Zacks Beverages – Alcohol industry remain under pressure as inflation hikes costs across labor, transportation and raw materials. Higher ingredient, packaging and shipping expenses are squeezing margins, while increased spending on marketing, promotions and daily operations continues to weigh on profitability. Tariffs add another layer of risk, pushing up prices for imported brands, dampening demand and disrupting supply chains.
Despite these headwinds, growth opportunities persist. Premiumization continues to gain traction as consumers shift toward higher-quality, distinctive offerings. Segments like ready-to-drink spirits, canned wines and cocktails, hard seltzers, ciders and flavored malt beverages are reshaping the market, attracting younger consumers while offering convenience and variety to more established drinkers.
To capitalize on these trends, leading players, including Anheuser-Busch InBev BUD, Diageo Plc DEO, Constellation Brands Inc. STZ, Brown-Forman Corporation BF.B and Molson Coors Beverage Company TAP, are intensifying investments in innovation, technology and premium brand positioning. While volatility in input costs and tariffs may continue to pressure margins in the near term, strong brand equity and premium-led innovation are expected to remain the industry’s primary growth drivers.
About the Industry
The Zacks Beverages – Alcohol industry mainly comprises producers, importers, exporters, marketers and sellers of alcoholic beverages like beer, craft beer, ciders, wine, rum, whiskey, liqueurs, vodka, tequila, champagnes, brandy, amaretto, ready-to-drink (RTD) cocktails and malt. Some industry players also produce and sell non-alcoholic beverages like carbonated soft drinks, sparkling waters, bottled water, energy drinks, powdered and natural juices, and RTD teas. The companies sell products through wholesalers and retailers like supermarkets, warehouse clubs, grocery stores, convenience stores, package stores, drug stores and other retail outlets. The industry participants also sell beer directly to consumers in cans and bottles at restaurants, pubs, bars and liquor stores. Some brewers operate brewpubs or tasting rooms at breweries, offering consumers the freshest beer.
What's Shaping the Future of Beverages - Alcohol Industry
Elevated Costs: The alcohol industry continues to grapple with elevated cost pressures from inflation across labor, transportation and raw materials. Higher prices for key inputs such as grains and fruits, along with rising costs for packaging, co-packing, fuel and logistics, have pushed up production and operating expenses, weighing on the gross and operating margins.
In addition to input inflation, companies are facing increased spending on advertising, promotions and SG&A as they step up brand investments, media activity and local market execution. Higher freight costs tied to volume growth, along with rising wages and discretionary expenses, are contributing to margin pressure and SG&A deleverage. Many industry participants expect these headwinds to persist in the near term, continuing to challenge profitability.
Potential Tariff Impacts: Tariffs imposed by President Donald Trump are expected to create severe headwinds for the U.S. beverage alcohol industry, with implications for pricing, supply chains, trade flows and consumer demand. Tariffs on imports from Canada, Mexico and China raise input and landed costs for a range of imported spirits and beers, including well-known international brands. These higher costs are likely to be passed on to consumers, resulting in price increases that could weigh on volumes. At the same time, supply chains may face disruption as companies reassess sourcing and logistics, potentially leading to delays, tighter availability and higher operating expenses. As prices rise and choice narrows, consumers may trade down or reduce consumption, pressuring industry sales and margins.
Premiumization & Product Diversification: Premiumization remains a core growth engine for the alcohol industry as consumers increasingly gravitate toward distinctive flavors, higher-quality offerings and experiential brands. In response, beverage companies are broadening their portfolios to capture demand for premium and super-premium products while extending beyond traditional beer, wine and spirits. The category mix is rapidly evolving, with strong momentum in craft spirits, low- and no-alcohol offerings, RTD spirits, canned wines and cocktails, hard seltzers, cider and flavored malt beverages. As consumer preferences fragment and occasions diversify, sustained innovation and agile product development have become critical for brands seeking to remain relevant, defend pricing power and drive long-term growth.
Zacks Industry Rank Indicates Dull Prospects
The Zacks Beverages – Alcohol industry is a 14-stock group within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #205, placing it at the bottom 16% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group’s earnings growth potential.
Before we present a few stocks that you may want to consider for your portfolio, let us take a look at the industry’s recent stock-market performance and valuation picture.
Industry Underperforms S&P 500
The Zacks Beverages – Alcohol industry has outperformed the broader sector and underperformed the S&P 500 in the past year.
The stocks in the industry have collectively returned 4.8% in the past year, whereas the Zacks Consumer Staples sector has declined 3.2%. Meanwhile, the Zacks S&P 500 composite has rallied 34.6%.
1-Year Price Performance
Beverages - Alcohol Industry's Valuation
Based on the forward 12-month price-to-earnings (P/E) ratio, commonly used to value Consumer Staples stocks, the industry is currently trading at 15.71X compared with the S&P 500’s 21.49X and the sector’s 16.57X.
Over the last five years, the industry traded as high as 26.77X, as low as 13.77X and at the median of 18.61X, as the chart below shows.
Price-to-Earnings Ratio (Past 5 Years)
5 Alcohol Beverages Stocks to Keep a Close Eye on
None of the stocks in the Zacks Beverages – Alcohol space currently sports a Zacks Rank #1 (Strong Buy) and a Zacks Rank #2 (Buy). However, we have selected five stocks with a Zacks Rank #3 (Hold) to watch from the same industry. You can see the complete list of today’s Zacks #1 Rank stocks here.
Let us have a look at the companies.
Anheuser-Busch InBev: Also known as AB InBev, this is a global brewing leader with a portfolio of iconic brands spanning diverse geographies. Its leading positions across key markets and expansive global footprint provide meaningful scale advantages, enabling efficient operations and the ability to grow multi-country brands worldwide. The company continues to benefit from resilient consumer demand for its core brands, supported by strong business momentum, driven by disciplined execution, sustained brand investment and an accelerated digital transformation agenda. Premiumization remains a central growth lever, as consumers increasingly trade up within the beer category.
Beyond core beer, AB InBev is steadily expanding its Beyond Beer portfolio, encompassing ready-to-drink offerings, such as canned wines and cocktails, along with hard seltzers, ciders and flavored malt beverages. This diversification strategy is enhancing relevance across occasions and consumer segments, while providing an incremental growth runway and supporting top-line momentum. The Zacks Consensus Estimate for AB InBev’s 2027 sales and earnings suggests growth of 6.7% and 12.3% from the year-ago period’s reported figures. The consensus mark for the company’s 2027 earnings has moved down 0.5% in the past seven days. The Zacks Rank #3 stock has gained 16.9% in the past year.
Price & Consensus: BUD
Diageo: The stock of this London-based leading beverage company has declined 25.6% in the past year. DEO operates in approximately 180 countries, and is involved in producing, distilling, brewing, bottling, packaging, and distributing spirits, wine and beer. The company continues to place innovation and consumer moderation at the center of its long-term growth strategy, addressing evolving consumption patterns and diversifying its portfolio. Innovation remains a key driver, with strong momentum across tequila, whisky, beer and RTD formats.
Equally important is Diageo’s push into moderation, wherein it has established clear leadership in non-alcoholic spirits. The company is refining its $2-billion productivity program to drive efficiency across the business while ensuring long-term sustainable growth. A key focus is balancing cost savings with strategic reinvestment, particularly in marketing and brand activation. The Zacks Consensus Estimate for Diageo’s fiscal 2027 EPS has been unchanged in the past 30 days. The consensus estimate for fiscal 2027 earnings suggests a decline of 3.2% from the year-ago period’s reported figure.
Price & Consensus: DEO
Constellation Brands: The Victor, NY-based third-largest beer company and a leading, high-end wine company in the United States continues to benefit from a sharp focus on brand building and a steady cadence of innovation. The company’s premiumization strategy remains a key growth driver, led by the sustained strength of the Modelo and Corona brand families and continued traction across its Power Brands portfolio. Its beer business is benefiting from premium and above-premium trends, supported by growth in traditional beer and adjacent categories, such as flavored beer, seltzers, RTD spirits and flavored malt beverages.
STZ is actively investing to extend the momentum of its Power Brands, aligning innovation with evolving consumer preferences and delivering successful product launches. Meanwhile, the company’s digital momentum continues to build through platforms, such as Instacart, Drizly and retailer-owned channels, reflecting consumers’ growing preference for convenience-driven purchasing. The Zacks Consensus Estimate for STZ’s fiscal 2027 earnings per share has moved down 3.5% in the past seven days. The consensus estimate for fiscal 2027 sales and earnings suggests growth of 0.6% and 0.9%, respectively, from the year-ago period’s reported figures. The Zacks Rank #3 stock has lost 10.2% in the past year.
Price & Consensus: STZ
Brown-Forman: Based in Louisville, KY, this is a global spirits company that manufactures, distills, bottles, imports, exports, markets and sells a broad portfolio of premium alcoholic beverages. The company’s growth strategy is anchored in premiumization, with a clear focus on high-quality, premium and super-premium spirits that support brand equity and margin resilience. The portfolio has been streamlined around core power brands such as Jack Daniel’s and Woodford Reserve, complemented by successful additions like the Jack Daniel’s and Coca-Cola RTD and the integration of super-premium labels Gin Mare and Diplomático.
Emerging markets continue to provide a strong growth offset, driven by rising middle-class demand and momentum across the Jack Daniel’s family. Disciplined pricing, innovation, distribution evolution and tighter cost control underpin long-term value creation despite near-term pressures. The Zacks Consensus Estimate for BF.B’s fiscal 2026 sales and earnings suggests declines of 2.3% and 4.4%, respectively, from the year-ago period’s reported figures. The consensus mark for the Zacks Rank #3 company’s fiscal 2026 earnings has moved up 1.7% in the past 30 days. BF.B has declined 11.6% in the past year.
Price & Consensus: BF.B
Molson Coors: The stock of this Chicago, IL-based leading beverage company has declined 25.6% in the past year. TAP is on track with its revitalization plan, focused on achieving sustainable top-line growth by streamlining its organization and reinvesting resources into its brands and capabilities. Investments, partnerships and product launches, which are part of its revitalization plan, have been aiding the company.
Molson Coors has been committed to increasing its market share through innovation and premiumization. Intending to accelerate portfolio premiumization, TAP has been aggressively growing its above-premium portfolio in the past few years. The Zacks Consensus Estimate for Molson Coors’ 2026 EPS has been unchanged in the past 30 days. The consensus estimate for the Zacks Rank #3 company’s 2026 sales and earnings suggests declines of 0.2% and 11.8%, respectively, from the year-ago period’s reported figures.
Price & Consensus: TAP
5 Stocks Set to Double
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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.

5 Alcohol Stocks Battling Cost Pressures, Betting on Premiumization

Investors in Diageo plc (Symbol: DEO) saw new options begin trading today, for the January 2028 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 661 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DEO options chain for the new January 2028 contracts and identified one put and one call contract of particular interest.
The put contract at the $70.00 strike price has a current bid of $8.60. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $70.00, but will also collect the premium, putting the cost basis of the shares at $61.40 (before broker commissions). To an investor already interested in purchasing shares of DEO, that could represent an attractive alternative to paying $74.03/share today.
Because the $70.00 strike represents an approximate 5% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 66%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 12.29% return on the cash commitment, or 6.78% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Diageo plc, and highlighting in green where the $70.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $75.00 strike price has a current bid of $10.90. If an investor was to purchase shares of DEO stock at the current price level of $74.03/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $75.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 16.03% if the stock gets called away at the January 2028 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DEO shares really soar, which is why looking at the trailing twelve month trading history for Diageo plc, as well as studying the business fundamentals becomes important. Below is a chart showing DEO's trailing twelve month trading history, with the $75.00 strike highlighted in red:
Considering the fact that the $75.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 45%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 14.72% boost of extra return to the investor, or 8.13% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 35%, while the implied volatility in the call contract example is 36%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $74.03) to be 33%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
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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.

Interesting DEO Put And Call Options For January 2028

Tuesday, March 24, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Meta Platforms, Inc. (META) and Chevron Corp. (CVX), as well as two micro-cap stocks Investors Title Co. (ITIC) and AmeriServ Financial, Inc. (ASRV). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Today's Featured Research Reports
Shares of Apple have gained +12.8% over the past year against the Zacks Computer - Micro Computers industry’s gain of +13.7%. The company is benefiting from strong growth in iPhone and Services revenues. AAPL continues to gain momentum in emerging markets India and Greater China reported strong fiscal first quarter growth driven by iPhone.
Apple now has more than 1 billion paid subscribers across its Services portfolio and 2.5 billion active devices. Expanding capabilities of AI Intelligence is noteworthy. Apple expects the March quarter’s net sales to grow between 13% and 16% on a year-over-year basis despite constrained iPhone supply. Services are expected to grow at the fourth quarter of fiscal 2025 rate.
However, gross margins are expected to be 48-49% in the second quarter of fiscal 2026. Increasing regulatory headwinds and stiff competition are major concerns for the iPhone-maker.
(You can read the full research report on Apple here >>>)
Meta’s shares have declined -4.7% over the past year against the Zacks Internet - Software industry’s decline of -11%. The company is benefiting from increasing AI-infusion across its services which currently reach more than 3.58 billion people daily. META’s improved recommendation system is driving up user engagement. Instagram Reels had a strong fourth-quarter, with watch time up more than 30% year-over-year in the United States.
Facebook video time continued to grow double-digits year-over-year in the United States. Recommendation improvement drove 20% lift in time spent on Threads. AI usage is making META a popular name among advertisers.
Meta Platforms now expects to invest significantly more over the next few years in developing more advanced models and the largest AI services in the world. However, monetization of these AI services will take considerable time, which is a concern. Increasing regulatory challenges is a headwind for investors
(You can read the full research report on Meta here >>>)
Shares of Chevron have gained +31.2% over the past year against the Zacks Oil and Gas - Integrated - International industry’s gain of +38.8%. The company’s portfolio is strengthening, but risks keep the outlook balanced. The Hess acquisition adds high-quality assets in Guyana, the Bakken, and the Gulf of America, lifting long-term production visibility and free cash flow potential.
Even with weak oil prices, free cash flow grew sharply in 2025, supported by cost discipline, asset quality, and steady operations. Deepwater projects like Ballymore and Whale, along with a dominant Permian position, underpin medium-term growth, while ongoing efficiency gains are lowering breakevens.
But execution and geopolitical risks remain, as seen at Tengiz, while Venezuela upside depends on policy clarity. Downstream and chemicals face margin pressure, valuation is elevated versus peers, and energy transition progress trails Europe. Taken together, these factors support a Neutral view on CVX stock.
(You can read the full research report on Chevron here >>>)
Investors Title’s shares have declined -7.4% over the past year against the Zacks Insurance - Property and Casualty industry’s decline of -8.3%. This microcap company with a market capitalization of $406.81 million has risks that remain material. The business is highly cyclical and tied to real estate volumes, with significant geographic concentration. Rising operating costs could pressure margins. Investment income volatility adds further downside risk. The company's valuation appears reasonable (6.68X EV/EBITDA), below industry peers.
Nevertheless, Investors Title’s earnings have strengthened meaningfully, with revenues rising to $272.8 million in 2025 and margins expanding to 12.9%, reflecting improved operating leverage and earnings quality. Core title premiums continue to grow across both agency and direct channels, signaling durable franchise demand.
The 2026 backdrop is supportive, with improving mortgage activity and lower rates, while recent state rate hikes (notably in NC) provide incremental revenue upside. A strong balance sheet and cash generation enhance flexibility, supporting dividends and buybacks.
(You can read the full research report on Investors Title here >>>)
Shares of AmeriServ Financial have outperformed the Zacks Banks - Northeast industry over the past year (+64% vs. +15.6%). This microcap company with a market capitalization of $62.1 million is supported by improving core earnings momentum in 2025, driven by a 17% rise in net interest income and margin expansion to 3.15%, reflecting better asset yields and funding costs.
Balance sheet strength improved as deposit growth reduced reliance on higher-cost borrowings, positioning the bank with a more stable, lower-cost funding base entering 2026. Credit quality also trended positively following the resolution of a large problem loan, lowering non-performing and classified loans. Strategic partnerships in wealth management signal a shift toward scalable fee-based revenue.
However, risks remain elevated. CRE concentration is high at over 350% of capital, leaving earnings sensitive to isolated credit events, as seen in 2025 charge-offs. Geographic concentration in slower-growth markets may constrain loan and deposit expansion. The stock trades at 0.51X book, below peers and near historical norms.
(You can read the full research report on AmeriServ Financial here >>>)
Other noteworthy reports we are featuring today include Exelon Corp. (EXC), Entergy Corp. (ETR) and Diageo plc (DEO).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
Regulated Investment and Revenue Decoupling Aid Exelon (EXC)
Per the Zacks analyst, Exelon's planned $41.3B investment to strengthen transmission and distribution lines and revenue decoupling mitigates the impact of load fluctuation to boost its performance.
Investments and Renewable Expansion Aid Entergy Corp. (ETR)
According to the Zacks analyst, Entergy plans to invest nearly $43 billion during 2026-2029, to further strengthen its infrastructure. It aims to add 14-17 GW of renewables by 2031.
Diageo (DEO) Long-Term Outlook Intact on Strong Fundamental and Growth
Per the Zacks analyst, Diageo's premium portfolio, global scale and growth in key regions support resilience, while efficiency initiatives and innovation strengthen margins and long-term prospects.
TraceGains Buyout Aids Veralto (VLTO) Amid High Competition
Per the Zacks Analyst, TraceGains' acquisition broadens Veralto's digital offerings, utilizing synergies with its Esko-branded solutions and consumer base. Rising competition is an overhang.
Transient Demand, Capital-Recycling to Aid Host Hotels (HST)
Per the Zacks analyst, Host Hotels' solid leisure transient business demand and capital-recycling moves bode well for growth. However, a modest construction pipeline and competition ail.
Partnership With Volkswagen Aids QuantumScape (QS) Amid Rising Capex
Per the Zacks analyst, the partnership with Volkswagen's PowerCo has strengthened QuantumScape's commercialization outlook. However, rising capital requirement is likely to hurt its cash flows.
A Solid Product Suite Aids Merit Medical (MMSI) Amid Stiff Competition
The Zacks analyst is upbeat about Merit Medical's strong product pipeline despite its operation in a highly competitive market.
New Upgrades
Celestica (CLS) Rides on Strong Demand, Robust Supply Chain
Per the Zacks analyst, solid demand for 400G and 800G switch products in AI data centers will likely drive Celestica's top line. A strong supply chain amid growing geopolitical unrest is a positive.
Cognex (CGNX) Rides on Portfolio Optimization and Margin Expansion
Per the Zacks analyst, Cognex is benefiting from structural margin expansion driven by portfolio optimization, improved pricing and identified cost actions.
Mercury General (MCY) Boasts Revenue Growth, Solid Balance Sheet
Per the Zacks analyst, Mercury General is set to grow on strong revenues driven by improved net investment income and rate increases. Moreover, its solid balance sheet provides financial flexibility.
New Downgrades
Alkermes' (ALKS) High Reliance on Proprietary Drugs for Revenues a Woe
Per the Zacks analyst, Alkermes' heavy dependence on its proprietary drug portfolio for revenues remains a concern. Stiff competition in the target market also remains an overhang.
Alibaba (BABA) Suffers From Sluggish China Commerce Business
Per the Zacks analyst, Alibaba is suffering from weakening market conditions in China, resulting in softness in its China Commerce business.
High Costs and Rising Preopening Expenses Hurt Live Nation (LYV)
Per the Zacks analyst, Live Nation business is being hurt by high operating expenses tied to higher show count. Also, rising preopening costs from venue expansion remain concerns.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
Entergy Corporation (ETR) : Free Stock Analysis Report
Investors Title Company (ITIC) : Free Stock Analysis Report
AmeriServ Financial Inc. (ASRV): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Research Reports for Apple, Meta & Chevron

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Wednesday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 28.0, after changing hands as low as $99.39 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 68.2. A bullish investor could look at DEO's 28.0 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of DEO shares:
Looking at the chart above, DEO's low point in its 52 week range is $99.2604 per share, with $142.73 as the 52 week high point — that compares with a last trade of $99.54.
Free Report: Top 8%+ Dividends (paid monthly)
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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.

Diageo is Now Oversold (DEO)

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.
Should you buy stock in Diageo Plc right now?
Before you buy stock in Diageo Plc, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Diageo Plc wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $519,015!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,086,211!*
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*Stock Advisor returns as of February 28, 2026.
Howard Smith 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.