European Stocks to Buy: Diageo (DEO)
Call me partial, but I’m a big fan of Diageo (DEO) and its bevy of fine libations.
As a Johnnie Walker brand enthusiast, it pleases me that I can put this European stock on my list of winners to come from the current pullback. Diageo just reported preliminary financial results showing a 1.8% increase in sales over the past six months. Ironically, this London-based spirits maker saw its biggest boost (a 4.6% increase) from North American sales, which means Americans keep guzzling the company’s brands.
Like just about every company, if there is a big slowdown in emerging markets, it could negatively impact Diageo’s bottom line, as well as DEO stock. But like the recent region-wide pullback, I think the mild pullback in DEO stock here is a signal to drink up the shares now and feel the profits tingle later in the year.