UK stock alert

UK

CLOSING UPDATE: Diageo decreases 0.1%, led Beverages sector lower 17 October 2017 19:03 BST

NEWS BITES - EUROPE

This is an end of day Alert, produced after today's United Kingdom market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Diageo, the largest beverages company by market capitalisation in the United Kingdom, has decreased 0.1% to trade at GBX2,538.50 vs. the Beverages sector which weakened 22.6 points (or 0.07%) to 34,646.1. Representing a weighting of about 39.5% of the sector, the stock accounted for 66.6% of today's loss. Compared with the FTSE 100 Index which rose 20.8 points (or 0.3%) in the day, this represented a relative price change of -0.4%.

Technical indicators complementing today's significant downtrend:

+ The price decreased 0.7% in the last week.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

+ Price/Earnings/Growth of 3.99 [1.3]

Other Bearish Signals include:

+ Tobin's Q Ratio is 2.2. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

Note

Bullish Signals:

The positive 14.5 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

The 3.0% discount to 12-month high of GBX2,616.0 against the 33.8% premium to 12-month low of GBX1,896.61 suggests the stock continues to push for new highs.

In the last three months the stock has hit a new 52-week high ten times, pointing to a significant uptrend.

Interest cover is less leveraged at 7.3 times.

Total Liabilities/EBITDA of 4.1 is less than the Joseph Piotroski benchmark of <5.

Net profit margin has averaged 22.9% in the last 3 years. This is considered superior and suggests a high margin of safety.

As per the Du Pont analysis, Return on Equity is high at 28.5%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Dividend yield of 2.5% [1.1%]

Return on Equity 28.5% [25.6%]

TODAY'S ALERT

Afternoon Alert: Diageo increases 0.5%, leads Beverages sector higher

17 October 2017 15:42 BST

Diageo PLC (L:DGE) has increased 0.5% to trade at GBX2,554.0 vs. the Beverages sector which strengthened 61.8 points (or 0.2%) to 34,730.5. Representing a weighting of about 39.7% of the sector, the stock accounted for the gain. Trading volume was 1.3 times average so far today.

RECENT ALERTS

Afternoon Alert: Diageo decreases 0.2%, leads Beverages sector lower

16 October 2017 15:42 BST

Diageo PLC (L:DGE) has decreased 0.2% to trade at GBX2,537.50 vs. the Beverages sector which weakened 35.7 points (or 0.1%) to 34,649.5. Representing a weighting of about 39.5% of the sector, the stock accounted for 77.7% of today's loss. Trading volume was 80% of average so far today.

Afternoon Alert: Diageo decreases 0.2%, leads Beverages sector lower

16 October 2017 13:22 BST

Diageo PLC (L:DGE) has decreased 0.2% to trade at GBX2,537.50 vs. the Beverages sector which weakened 35.6 points (or 0.1%) to 34,649.6. Representing a weighting of about 39.5% of the sector, the stock accounted for 77.7% of today's loss. Trading volume was 56% of average so far today.

Diageo PLC (L:DGE; LON:DGE; LN:DGE)

ISIN: GB0002374006

PermID: 4295894791

Source: www.BuySellSignals.com