UK stock alert

UK

CLOSING UPDATE: Diageo decreased 1.7%, led Beverages sector lower 24 July 2017 19:05 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 1.7% to trade at GBX2,247.50 vs. the Beverages sector which weakened 214.3 points (or 0.6%) to 33,487.6. Representing a weighting of about 36.3% of the sector, the stock accounted for 94.3% of today's loss. The shares have underperformed 82% of the market in the past week. Trading volume was 1.6 times average at the end of the day. Compared with the FTSE 100 Index which fell 75.2 points (or 1%) in the day, this represented a relative price change of -0.7%.

Technical indicators complementing today's significant downtrend:

+ The negative 8.73 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ In the United Kingdom market, the stock's relative price strength percentile is falling at 47 for 6 months, 43 for 3 months and 26 for 1 month.

+ The price decreased 2.0% in the last week and dropped 3.8% in the last month.

Note

Diageo today is at a discount of 6.9% to the 12-month high of GBX2,413.50 on 20 Jun, 2017. It is at a premium of 16.7% to the 12-month low of GBX1,925.88 on 07 Dec, 2016.

Bullish Signals:

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

Total Liabilities/EBITDA of 4.7 is less than the Joseph Piotroski benchmark of <5.

Tobin's Q Ratio is 2. Compared with the rest of the market the stock is undervalued.

Net profit margin has averaged 20.5% 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 29.1%.

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

Undervaluation:

Dividend yield of 2.7% [1.1%]

Return on Equity 29.1% [24.8%]

TODAY'S ALERTS

Afternoon Alert: Diageo down 2.4% in 2 days

24 July 2017 15:42 BST

Diageo PLC (L:DGE) extended its slide on Monday, shedding an additional GBX31.50 (or 1.4%) to trade at GBX2,254.0. The shares have fallen GBX55.50 (or 2.4%) over the past two trading days vs. the FTSE 100 Index which has fallen 1.5% in the same period.

Morning Alert: Diageo down 2.2% in 2 days

24 July 2017 11:23 BST

Diageo PLC (L:DGE) extended its slide on Monday, shedding an additional GBX26.0 (or 1.1%) to trade at GBX2,259.50. The shares have fallen GBX50.0 (or 2.2%) over the past two trading days vs. the FTSE 100 Index which has fallen 1.3% in the same period.

RECENT ALERTS

CLOSING UPDATE: Diageo decreased further 0.4%, led Beverages sector lower

21 July 2017 19:05 BST

Diageo, the largest beverages company by market capitalisation in the United Kingdom, has decreased 1.0% to trade at GBX2,285.50 vs. the Beverages sector which weakened 133.4 points (or 0.4%) to 33,390.2. Representing a weighting of about 37.0% of the sector, the stock accounted for 96.2% of today's loss. Trading volume was 89% of average at the end of the day. Compared with the FTSE 100 Index which fell 35.0 points (or 0.5%) in the day, this represented a relative price change of -0.6%.

Afternoon Alert: Diageo decreases 0.6%, leads Beverages sector lower

21 July 2017 15:54 BST

Diageo PLC (L:DGE) has decreased 0.6% to trade at GBX2,295.0 vs. the Beverages sector which weakened 82.6 points (or 0.2%) to 33,441.0. Representing a weighting of about 37.1% of the sector, the stock accounted for 93.2% of today's loss. Trading volume was 83% of average so far today.

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

ISIN: GB0002374006

PermID: 4295894791

Source: www.BuySellSignals.com