![]() ![]() This was driven by both healthy organic net sales growth (+9.4%) and favourable impacts from booking revenue in a strong US dollar. Net sales were up 18% year on year to £9.4bn. The company reported its interim results back in January, covering the six months to 31 December. This combination of instantly recognisable brands and pricing power makes Diageo a buy-and-hold-forever stock for me. The list goes on.Īnd it recently acquired Don Papa, a super-premium dark rum from the Philippines. Johnnie Walker, Smirnoff, Gordon’s, Tanqueray, Captain Morgan, Baileys. I’d struggle to walk five yards down any supermarket drinks aisle without encountering a Diageo-owned brand. The spirits giant owns over 200 brands sold in more than 180 countries. It can raise prices without harming sales - as and when it needs to - in order to preserve profit margins. One, Diageo owns many unique brands, such as Guinness, that are increasingly popular. ![]() And last month, the company raised prices by 12% on its draught beer range, including Guinness. That was a new record for Diageo’s second-biggest selling brand. One in every 10 pints served in a London pub or bar in 2022 was a pint of Guinness. ![]() However, the general risk appetite remains strong, so Snap stock may get more support in case S&P 500 moves towards the 4600 level.I think Diageo is an ideal investment to hold in any economic circumstances and forever. The stock remains very expensive, and even speculative traders may wait for additional pullback before buying Snap shares. Judging by recent developments in various industries, these problems may persist well into 2022, so analysts may have to adjust their 2022 earnings forecasts for Snap. The hit from Apple’s privacy policy changes was bigger than the market and the company itself expected, and it remains to be seen whether Snap will be able to solve its Apple-related problems in the fourth-quarter of this year.Īt the same time, the company will also have to deal with pandemic-related shortages which have put pressure on businesses’ desire to advertise their products. At such valuation levels, Snap shares are very sensitive to any negative changes in the company’s growth outlook. Snap is richly valued like many tech stocks in the current market environment. Currently, analysts expect that Snap will report earnings of $0.36 per share in 2021 and $0.8 per share in 2022, so the stock is trading at 72 forward P/E even after the major pullback. ![]()
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