UK stock alert
Afternoon Alert: Diageo decreases 0.7%, leads Beverages sector lower 16 January 2018 14:43 GMT
NEWS BITES - EUROPE
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.
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.
Diageo PLC (L:DGE; LON:DGE; LN:DGE)