5 Best Wine Stocks to Invest In 2022

2. Diageo plc (NYSE:DEO)

Number of Hedge Fund Holders: 22

Diageo plc (NYSE:DEO) is a British company that was set up in 1886. The firm sells several kinds of alcoholic drinks, including wine, tequila, several kinds of whiskies, and brandy. It is headquartered in London, the United Kingdom.

Diageo plc (NYSE:DEO) was one of the strongest performers during the coronavirus pandemic, with its revenue falling by only 9% in 2020 and managing to grow once again by 8% in 2021. The 8% figure came at a time when the British pound was declining in value, and when these fluctuations are removed, revenue growth actually stood at 16%. Its latest fiscal year saw Diageo plc (NYSE:DEO) grow revenues by another 21% – with the last quarter starting to mark record high inflation in Britain. The firm also aims to return up to GBP4.5 billion to shareholders by the end of June 2023, and it currently pays a 95 cent dividend for a 2.17% yield.

Insider Monkey profiled 895 hedge funds during this year’s June quarter and discovered that 22 had invested in Diageo plc (NYSE:DEO).

Nicolai Tangen’s Ako Capital is Diageo plc (NYSE:DEO)’s largest investor in our database. It owns 1.7 million shares that are worth $296 million.

ClearBridge Investments mentioned the company in its Q2 2022 investor letter. Here is what the fund said:

“Diageo is a leading global distiller and brewer which addresses the large ($500 billion-plus) and fragmented market for spirits. With its portfolio of premium products, we see Diageo as a steady compounder poised for sustained, above industry growth. The company’s margins remain below pre-COVID levels in a number of geographies and should continue to recover as channels reopen, though we also see opportunities for consistent margin expansion beyond this period of rebound. The spirits category is not immune to weaker consumer spending nor inflation; however the majority of Diageo’s profits are from the U.S. market, which has historically been more resilient. Additionally, the company has a number of margin levers to help combat rising input costs.”