The support at 3060 GBp, which is currently being tested, should allow Diageo shares to move back to the upside. Investors have an opportunity to buy the stock and target the GBX 3200.
The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
The close medium term support offers good timing for purchasing the stock.
Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
Over the last twelve months, the sales forecast has been frequently revised upwards.
The stock is in a well-established, long-term rising trend above the technical support level at 2716 GBp
The company is in a hindered financial situation with significant debt and rather low EBITDA levels.
The company's "enterprise value to sales" ratio is among the highest in the world.
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