Diageo plc (NYSE:DEO) is one of the best undervalued defensive stocks for 2026. On March 2, Diageo plc (NYSE:DEO) was downgraded to Hold from Buy, with the firm setting a price target of 1,800 GBp. The firm attributed the downgrade to uncertainty over when the company’s U.S. volumes will bottom. It further told investors in a research note that Diageo plc (NYSE:DEO) lowered its fiscal 2026 guidance to reflect factors such as challenges in Chinese white spirits, a weaker-than-expected U.S. spirits category, and a weaker consumer in China.
The company’s 2026 interim results for the six months ended 31 December 2025, showed reported net sales of $10.5 billion, which declined 4.0% due to organic net sales decline and the negative impact of disposals. Diageo plc (NYSE:DEO) also reported that organic net sales declined 2.8%, driven primarily by organic volume down 0.9% and negative price/mix of 1.9%. In addition, strong organic net sales growth in Europe, Latin America and Caribbean (LAC), and Africa was more than offset by softer performance in North America.
Diageo plc (NYSE:DEO) is involved in the production and distribution of alcoholic beverages. Its brands include Johnnie Walker, Crown Royal, J&B and Buchanan’s whiskies, Smirnoff, Ciroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Casamigos, Tanqueray, and Guinness. The company’s operations are divided into the following geographical segments: North America, Europe, Asia Pacific, Latin America and Caribbean, Africa, and Corporate and Other.
READ NEXT: 15 Stocks That Will Make You Rich in 10 Years AND 12 Best Stocks That Will Always Grow.
