2024-03-28 16:33:10 ET
Summary
- As valuations within consumer staples are cooling off, now is a good time to hunt for bargains within the sector.
- The high gross margin and the resiliency of Diageo's business model limit any potential downside from current levels.
- A turnaround won't happen overnight, but the current fiscal year is likely to mark a bottom in sales growth and profitability.
As the market has embraced the risk-on trade in recent months and the odds of a recession in 2024 seem to have disappeared, consumer staples have become the second-worst performing sector after utilities....
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Diageo: The Business Is Too Resilient To Justify The Sell-Off