UK stock alert

UK

CLOSING UPDATE: Diageo increases 1.6%, led Beverages sector higher 20 September 2018 21:28 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 increased 1.6% to trade at GBX2,654.0 vs. the Beverages sector which strengthened 143.8 points (or 1.4%) to 10,234.5. Representing a weighting of about 92.9% of the sector, the stock accounted for the gain. Trading volume was 2.1 times average at the end of the day. Compared with the FTSE 100 Index which rose 36.2 points (or 0.5%) in the day, this represented a relative price increase of 1.1%.

Technical indicators complementing today's significant uptrend:

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

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

Undervaluation:

+ Return on Equity 28.5% [25.3%]

+ Year-on-Year Earnings Growth of 18.4% [16.4%]

Other Bullish Signals include:

+ 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%.

Note

Diageo today is at a discount of 6.7% to the 12-month high of GBX2,843.84 on 20 Jul, 2018. It is at a premium of 14.8% to the 12-month low of GBX2,312.04 on 28 Mar, 2018.

Bearish Signals:

The negative 30.67 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

The price decreased 0.2% in the last week.

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.

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

Overvaluation:

Price/Earnings/Growth of 4.07 [1.5]

Dividend yield of 2.5% [3.9%]

TODAY'S ALERT

Afternoon Alert: Diageo inches higher, resistance at 12-day EMA

20 September 2018 15:51 BST

Diageo PLC (L:DGE) has increased 0.8% but fell short of the 12-day Exponential Moving Average [EMA] of GBX2,662.31.

RECENT ALERTS

CLOSING UPDATE: Diageo decreases further 0.5%, led Beverages sector lower

19 September 2018 21:22 BST

Diageo, the largest beverages company by market capitalisation in the United Kingdom, has decreased 0.8% to trade at GBX2,613.0 vs. the Beverages sector which weakened 75.4 points (or 0.7%) to 10,091.4. Representing a weighting of about 92.8% of the sector, the stock accounted for 97.6% of today's loss. The shares have underperformed 81% of the market in the past month. Trading volume was 87% of average at the end of the day. Compared with the FTSE 100 Index which rose 30.9 points (or 0.4%) in the day, this represented a relative price change of -1.2%.

Afternoon Alert: Diageo decreases 0.3%, leads Beverages sector lower

19 September 2018 15:49 BST

Diageo PLC (L:DGE) has decreased 0.3% to trade at GBX2,625.0 vs. the Beverages sector which weakened 30.0 points (or 0.3%) to 10,136.8. Representing a weighting of about 92.8% of the sector, the stock accounted for 99.8% of today's loss. Trading volume was 1.1 times average so far today.

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

ISIN: GB0002374006

PermID: 4295894791

Source: www.BuySellSignals.com