UK stock alert

UK

CLOSING UPDATE: Diageo decreases further 0.1%, led Beverages sector lower 18 June 2018 19:20 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 1.5% to trade at GBX2,743.50 vs. the Beverages sector which weakened 160.2 points (or 1.5%) to 10,578.9. Representing a weighting of about 94.6% of the sector, the stock accounted for 95.7% of today's loss. Trading volume was 71% of average at the end of the day. Compared with the FTSE 100 Index which fell 2.6 points (or 0.03%) in the day, this represented a relative price change of -1.5%.

Technical indicators complementing today's significant downtrend:

+ The price decreased 0.5% in the last week.

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

Overvaluation:

+ Price/Earnings/Growth of 4.23 [1.6]

+ Price/Sales of 5.4 [4.8]

Other Bearish Signals include:

+ Tobin's Q Ratio is 2.3. 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 35.73 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

The 2.6% discount to 12-month high of GBX2,817.50 against the 26.0% premium to 12-month low of GBX2,178.11 suggests the stock continues to push for new highs.

In the last three months the stock has hit a new 52-week high fourteen 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:

Return on Equity 28.5% [25.2%]

Year-on-Year Earnings Growth of 18.4% [16.2%]

TODAY'S ALERTS

Afternoon Alert: Diageo decreases 1.4%, leads Beverages sector lower

18 June 2018 15:42 BST

Diageo PLC (L:DGE) has decreased 1.4% to trade at GBX2,745.50 vs. the Beverages sector which weakened 149.7 points (or 1.4%) to 10,589.4. Representing a weighting of about 94.5% of the sector, the stock accounted for 97.7% of today's loss. Trading volume was 68% of average so far today.

Morning Alert: Diageo decreases 1.0%, leads Beverages sector lower

18 June 2018 10:52 BST

Diageo PLC (L:DGE) has decreased 1.0% to trade at GBX2,758.50 vs. the Beverages sector which weakened 99.7 points (or 0.9%) to 10,639.4. Representing a weighting of about 94.5% of the sector, the stock accounted for 98.5% of today's loss. Trading volume was 81% of average so far today.

RECENT ALERTS

CLOSING UPDATE: Diageo decreases gains by 0.3%, led Beverages sector higher

15 June 2018 19:19 BST

Diageo, the largest beverages company by market capitalisation in the United Kingdom, has increased 0.4% to trade at GBX2,785.50 vs. the Beverages sector which strengthened 42.4 points (or 0.4%) to 10,739.1. Representing a weighting of about 94.6% of the sector, the stock accounted for the gain. Trading volume was 2.0 times average at the end of the day. Compared with the FTSE 100 Index which fell 131.9 points (or 1.7%) in the day, this represented a relative price increase of 2.1%.

Afternoon Alert: Diageo increases 0.7%, leads Beverages sector higher

15 June 2018 15:54 BST

Diageo PLC (L:DGE) has increased 0.7% to trade at GBX2,794.0 vs. the Beverages sector which strengthened 73.3 points (or 0.7%) to 10,770.1. Representing a weighting of about 94.6% of the sector, the stock accounted for the gain. The shares have outperformed 81% of the market in the past week. Trading volume was 1.5 times average so far today.

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

ISIN: GB0002374006

PermID: 4295894791

Source: www.BuySellSignals.com