Published on 10 Apr 2024 on Zacks via Yahoo Finance
Diageo's (DEO) Strategic Endeavors on Track: Stock to Gain
Diageo Plc DEO looks well-poised on a slate of endeavors, including premiumization efforts, disciplined cost management, pricing actions, supply productivity savings, innovation and marketing investments. Additionally, the company has been benefiting from its diversified footprint, advantaged portfolio and strong brands.DEO has been witnessing solid business momentum, strong consumer demand and market share gains, which have been boosting its performance. The company is confident about the long-term potential of the total beverage alcohol sector. DEO expects to expand its value share by 50% in the sector to 6% by 2030.The Zacks Consensus Estimate for DEO’s fiscal 2024 sales suggests growth of 5.6% from the year-ago period’s reported number.However, continued inflationary pressures, driven by higher commodity costs, particularly agave, energy expenses and supply disruptions have been headwinds. Also, elevated inventory levels in Latin America and the Caribbean (“LAC”) have been denting the company’s performance.Shares of the Zacks Rank #3 (Hold) company have lost 1.2% in the year-to-date period compared with the industry’s decline of 5%.
