UK stock alert

UK

CLOSING UPDATE: Diageo decreases gains by 0.3%, led Beverages sector higher 15 June 2018 19:19 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 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%.

Technical indicators complementing today's significant uptrend:

+ The positive 39.29 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the last one month the stock has hit a new 52-week high twelve times and in the last three months fourteen times, pointing to a significant uptrend.

+ The price lifted 2.3% in the last week and climbed 4.1% in the last month.

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%]

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

Bearish Signals:

Tobin's Q Ratio is 2.4. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

Overbought/Bearish:

The 1.1% discount to 12-month high of GBX2,817.50 against the 27.9% premium to 12-month low of GBX2,178.11 suggests the climb might be peaking.

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

Overvaluation:

Price/Earnings/Growth of 4.29 [1.6]

TODAY'S ALERTS

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.

Morning Alert: Diageo increases 0.9%, leads Beverages sector higher

15 June 2018 11:01 BST

Diageo PLC (L:DGE) has increased 0.9% to trade at GBX2,797.50 vs. the Beverages sector which strengthened 87.1 points (or 0.8%) to 10,783.9. Representing a weighting of about 94.6% of the sector, the stock accounted for the gain. Trading volume was 1.1 times average so far today.

RECENT ALERTS

CLOSING UPDATE: Diageo increases losses by 0.02%, led Beverages sector lower

14 June 2018 19:09 BST

Diageo, the largest beverages company by market capitalisation in the United Kingdom, has decreased 0.1% to trade at GBX2,773.50 vs. the Beverages sector which weakened 9.3 points (or 0.09%) to 10,696.4. Representing a weighting of about 94.5% of the sector, the stock accounted for 75.7% of today's loss. Trading volume was 1.3 times average at the end of the day. Compared with the FTSE 100 Index which rose 62.1 points (or 0.8%) in the day, this represented a relative price change of -0.9%.

Afternoon Alert: Diageo decreases 0.1%, leads Beverages sector lower

14 June 2018 15:50 BST

Diageo PLC (L:DGE) has decreased 0.1% to trade at GBX2,773.0 vs. the Beverages sector which weakened 11.3 points (or 0.1%) to 10,694.4. Representing a weighting of about 94.5% of the sector, the stock accounted for 77.4% of today's loss. Trading volume was 1.8 times average so far today.

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

ISIN: GB0002374006

PermID: 4295894791

Source: www.BuySellSignals.com