• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Diageo share price crashes to key support before earnings: buy or sell?

by August 4, 2025
by August 4, 2025

Diageo share price continued its strong downward trend in the past few years, making it one of the top laggards in the FTSE 100 Index. It plunged to a low of 1,800p on Monday, down by over 51% from its highest level in 2022. 

DGE stock has tumbled to the lowest level since March 2017, which explains why Debra Crew, its chief executive officer, stepped down, and Nik Jhangiani, the CFO, agreed to serve as the interim CEO. 

Diageo earning ahead

Diageo is one of the top alcoholic beverage companies globally, making popular brands like Johnie Walker, Guinness, Baileys, Smirnoff, Singleton, and Ciroc.

Its business has been under pressure in the past few years, which explains why its sales trajectory and stock are deteriorating. 

It has blamed its performance on currency issues, tariffs, cost pressures, and cautious customers. On tariffs, its products will be affected by the 15% levy set by the Trump administration. 

Analysts anticipate that Diageo’s operating profit will be $5.6 billion for the year to June. If this is correct, it will be another drop after it posted a $6 billion profit in the previous year. 

The company’s main hope is that the growth of its Guinness brand helped to offset a deterioration in the spirits segment. 

In its most recent trading statement, the company said that its net sales ros by just 2.9% in the third quarter to $4.4 billion. This growth was likely due to increased purchasing by American companies ahead of Donald Trump’s tariffs. 

The management also reiterated that the company would hit its annual growth target. However, some analysts believe that recent decision by the CEO to step down is a sign that the company will not hit its target.

Read more: Diageo share price falls as company removes sales growth guidance amid tariff uncertainty: what investors need to know

Is it a contrarian buy?

The Diageo share price has crashed in the past few years and is now sitting at its lowest level in years. This decline has made it a fairly cheap company as it as a price-to-earnings ratio of 15, which is below its historical level. 

As such, the cheaper multiple means that it may attract some dip buyers as the company continues with its $500 million cost-cutting strategy.

The other potential catalyst for the company is that its dividend yield has gone up a bit recently. It has a yield of about 4.34%, which has helped to offset the stock’s plunge. 

Additionally, there are signs that the company will benefit from the announced trade deal between the US, UK, and the European Union. While these deals impose a substantial levy on UK and European goods, they offer some clarity among investors. 

Diageo share price technical analysis

DGE stock chart | Source: TradingView

The weekly chart shows that the DGE stock price has been in a freefall in the past few years, falling from a high of 3,760p in January 2022 to the current 1,810p. It has crashed below all moving averages, a sign that bears are in control.

The current price aligns with the lowest swing in 2022. It has formed a descending channel. At the same time, the stock has formed the highly bearish cup-and-handle pattern whose lower side is at 1,810p. 

Therefore, the stock may rebound to 2,000p after earnings as it forms the handle section of the C&H pattern. In the long term, however, the stock will likely continue falling as sellers target the support level at 1,600p.

The post Diageo share price crashes to key support before earnings: buy or sell? appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Here’s why Lloyds share price popped to a 17-year high today
next post
Why are over 3,200 Boeing workers on strike?

Related Posts

Analysis: Crude prices under pressure as 2026 outlook...

October 6, 2025

Tata Capital eyes $15.7 billion valuation in India’s...

October 6, 2025

India may settle $22.5bn Vodafone dispute to cement...

October 6, 2025

Here’s why the Rolls-Royce share price is up...

October 6, 2025

Ardian buys Ireland’s Energia Group in €2.5bn deal...

October 6, 2025

Europe markets open: Stoxx 600 slips 0.1% as...

October 6, 2025

China Financial Leasing’s $11M plan signals Hong Kong’s...

October 6, 2025

Japanese stocks may extend record run as Takaichi...

October 5, 2025

Former Tesla exec sees continued growth for EVs;...

October 5, 2025

Weekly wrap: A US shutdown; a UK terror...

October 5, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • CommsCloud’s new SIMs make borderless African IoT logistics a reality

    October 6, 2025
  • Housing’s Deep Freeze: Existing Home Sales at 25-Year Lows

    October 6, 2025
  • Nigeria’s Shea Ban Backfires, Crushing Millions of Women Workers

    October 6, 2025
  • Analysis: Crude prices under pressure as 2026 outlook signals surplus

    October 6, 2025
  • Tata Capital eyes $15.7 billion valuation in India’s biggest IPO of 2025

    October 6, 2025
  • India may settle $22.5bn Vodafone dispute to cement UK ties

    October 6, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 5

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 6

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 7

    Pop Mart reports 188% profit surge, plans aggressive global expansion

    March 26, 2025

Categories

  • Economy (2,791)
  • Editor's Pick (280)
  • Investing (185)
  • Stock (1,904)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

AMD stock price forecast: set to surge...

February 27, 2025

US battery storage poised for sustained growth...

June 13, 2025

Europe markets open: STOXX 600 +0.3% on...

May 23, 2025