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Stock impact report

Bear of the Day: Diageo (DEO) [Yahoo! Finance]

Diageo plc (DEO) 
US:NYSE Investor Relations: diageo.com/en/investors
Company Research Source: Yahoo! Finance
Alcohol usage in America has dropped from 60% in 2023 to just 54% today, the lowest level recorded since tracking began in 1939. Not surprisingly, spirits sales volumes in the US have stagnated, with surveys showing a growing share of consumers cutting back on or eliminating alcohol altogether. This shift has created a difficult operating environment for legacy alcohol companies like Diageo DEO Diageo shares have reflected those challenges, severely underperforming the already underperforming industry and the market year-to-date as both earnings and sales growth expectations trend lower. Even after such a decline, DEO still doesn't trade an especially discounted valuation as earnings shrink. Until Diageo can reinvent its portfolio to align with shifting consumer preferences, or the alcohol consumption trend reverses, investors may be better off avoiding the name. Image Source: Zacks Investment Research Diageo currently holds a Zacks Rank #5 (Strong Sell) , reflecting a steady st Show less Read more
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