Some companies just can’t catch a break in 2024. And there’s one in particular that I can’t stop watching. In the topsy-turvy stock market, I’m wondering if things are so bad that its shares have rarely looked more attractive.
Glass half empty Stock in premium spirits seller ( ) has fallen 16% since January. In 12 months, they’ve dropped 30%. But if we use the record high set in April 2022 as our anchor, they’ve crashed a little over 40%! If anything, this is a reminder that no investment is ever risk-free.
And, yes, this does include the biggest companies listed on the . Why’s this happened? Well, the market’s taken a (very) dim view of falling sales. The cost-of-living crisis has pushed consumers to buy cheaper alternatives, reduce their alcohol consumption, or cut it out completely.
The Latin American and Caribbean region — where interest rates have been seriously high — has proven particularly problematic. Sales here tanked 21% in the year to the end of June. On a positive note.
.. As troubling as this decline in fortunes is, Diageo isn’t alone.
Rivals and (and pretty much everything in the luxury sector) are also suffering. Since I doubt the human desire to show status has gone for good however, this is just the sort of situation that flicks my contrarian switch. There are other qualities.
In spite of its current predicament, Diageo still sells its drinks in nearly 180 countries around the world. Few businesses boast this kind of geographical diversi.