Diageo stock has plummeted by 54.45% since its peak in 2021, due to profit warnings, leadership changes, and economic challenges. The stock is currently at £18.39, the worst performance in its history, making investors wary of its iconic brands like Smirnoff and Johnnie Walker.

The uncertainty surrounding Diageo continues as the CEO stepped down, leaving the company in limbo. The CFO is now the interim CEO, facing shareholder backlash over stock awards. Economic cycles and consumer trends are also impacting Diageo, with the company struggling to adapt to changing preferences.

Morningstar analyst gives Diageo stock a Fair Value Estimate of £24.40, with a Four Star rating and trading at a 24% discount. Despite medium uncertainty, the analyst believes Diageo has potential due to its strong spirits portfolio and cost advantages. Diageo is expected to outperform peers in 2026 and see improvements in operating margins.

Read more at Morningstar: Is Diageo Stock a Buy?