Up 60%, Diageo Stock Still Has Potential To Rise

SourceForbes
SectorFinancial Markets
CountryMiddle east

BRAZIL - 2020/01/13: In this photo illustration the Diageo logo is seen displayed on a smartphone. ... [+] (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images Diageo stock (NYSE: DEO) has registered a formidable recovery of more than 60% from its March 2020 low. At the current price of $167, DEO stock still looks undervalued and is a decent bet for investors.

DEO stock has rallied 62% from $103 (on 23rd March 2020) to $167 off its recent bottom, compared to the S&P 500 which has increased 75% from its recent lows. The recent rally was driven by the US government’s announcement of a string of measures to keep businesses afloat and expectations of a rise in consumer demand and reduction in supply bottlenecks as the global lockdowns are gradually lifted. Despite a healthy rise, the stock is still slightly below its June-2019 level. The recent spike in Covid-positive cases in Europe and some other economies has limited the stock rise over the last three months. However, now with the lockdowns being lifted and vaccine rollout leading to expectations of faster economic recovery, volume sold is expected to ...read more...