{"id":42214,"date":"2025-08-04T11:38:06","date_gmt":"2025-08-04T11:38:06","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/08\/04\/diageo-share-price-crashes-to-key-support-before-earnings-buy-or-sell-2\/"},"modified":"2025-08-04T11:38:06","modified_gmt":"2025-08-04T11:38:06","slug":"diageo-share-price-crashes-to-key-support-before-earnings-buy-or-sell-2","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/08\/04\/diageo-share-price-crashes-to-key-support-before-earnings-buy-or-sell-2\/","title":{"rendered":"Diageo share price crashes to key support before earnings: buy or sell?"},"content":{"rendered":"
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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. <\/p>\n

DGE stock has tumbled to the lowest level since March 2017, which explains why Debra Crew, its\u00a0chief executive officer, stepped down<\/a>, and Nik Jhangiani, the CFO, agreed to serve as the interim CEO.<\/span>\u00a0<\/p>\n

Diageo earning ahead<\/h2>\n

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

Its business has been under pressure in the past few years, which explains why its sales trajectory and stock are deteriorating. <\/p>\n

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. <\/p>\n

Analysts anticipate that Diageo\u2019s 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. <\/p>\n

The company\u2019s main hope is that the growth of its Guinness brand helped to offset a deterioration in the spirits segment. <\/p>\n

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\u2019s tariffs. <\/p>\n

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.<\/p>\n

Read more: Diageo share price falls as company removes sales growth guidance amid tariff uncertainty: what investors need to know<\/a><\/p>\n

Is it a contrarian buy?<\/h2>\n

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. <\/p>\n

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

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\u2019s plunge. <\/p>\n

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. <\/p>\n

Diageo share price technical analysis<\/h2>\n
DGE stock chart | Source: TradingView<\/a><\/figcaption><\/figure>\n

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.<\/p>\n

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. <\/p>\n

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.<\/p>\n

The post Diageo share price crashes to key support before earnings: buy or sell?<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

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, <\/p>\n","protected":false},"author":1,"featured_media":42215,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-42214","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/42214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=42214"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/42214\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/42215"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=42214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=42214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=42214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}