Today: 14 March 2026
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NASDAQ:NP 20 February 2026

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  • Diageo Shares Drop 62% but Value Investors Eye Recovery Potential
    March 14, 2026, 3:47 AM EDT. Diageo shares have fallen over 62% from a four-year high amid weakening premium spirit sales, especially in the U.S. and Latin America. Revenue declined 5% year-on-year and earnings fell 35% due to impairments and restructuring. Despite this, free cash flow remains robust at £1.89 billion, supporting a longstanding dividend payout. The stock trades at a forward price-to-earnings ratio of 12.7, considered cheap for a global leader owning brands like Guinness and Johnnie Walker. Analysts forecast 11.2% annual earnings growth and a potential 30% share price rise within 12 months. Risks include U.S. tariffs, changing consumer preferences, and inflation pressures. New CEO Dave Lewis aims to drive a turnaround with cost savings of $465 million planned. Investors see potential recovery but acknowledge uncertainties amid evolving market dynamics.
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