UK stock alert


Afternoon Alert: Diageo decreases 0.7%, leads Beverages sector lower 16 January 2018 14:43 GMT


Diageo PLC (L:DGE) has decreased 0.7% to trade at GBX2,602.0 vs. the Beverages sector which weakened 95.8 points (or 0.3%) to 34,887.2. Representing a weighting of about 39.9% of the sector, the stock accounted for the loss. The shares have underperformed 83% of the market in the past month. Trading volume was 44% of average so far today.

Current indications of bearish signals that support the trend in the unusual trading:

+ The price dropped 2.6% in the last month.

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


+ Price/Earnings/Growth of 4.06 [1.4]

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.


Bullish Signals:

The positive 4.56 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

The 3.8% discount to 12-month high of GBX2,706.0 against the 25.4% premium to 12-month low of GBX2,074.48 suggests the stock continues to push for new highs.

In the last three months the stock has hit a new 52-week high twelve 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.


ISIN: GB0002374006

PermID: 4295894791