8 Stocks on Jim Cramer’s Radar

3. Diageo plc (NYSE:DEO)

Number of Hedge Fund Holders: 26

Calling Diageo plc (NYSE:DEO) stock “horrendous”, Cramer remarked:

“Diageo’s been a horrendous stock, befits a company that makes the Johnnie Walker and all his cousins, the Captain, Don Julio, Tanqueray, Casamigos, ugh, Ketel One, Crown Royal, and Bulleit.”

Diageo (NYSE:DEO) produces, markets, and sells a diverse range of alcoholic beverages, including spirits, beer, and non-alcoholic products, under various well-known brands. As Cramer discussed alcohol stocks in December 2024, he said:

“If we see some signs that younger people are drinking more or the GLP-1s aren’t having as much of an effect or impact on alcohol, then I’ll happily change my mind on both Brown-Forman and Diageo. But until then, you know what? I got to stay on the sidelines.”

It is worth noting that Oakmark Funds stated the following regarding Diageo plc (NYSE:DEO) in its Q4 2024 investor letter:

“Diageo plc (NYSE:DEO) is a global producer, distributor and marketer of premium drinks with more than 200 brands and sales in nearly 180 countries. The U.K.-based holding company’s portfolio includes leading brands, such as Johnnie Walker, Guinness, Don Julio, Crown Royal, Smirnoff, Baileys, Casamigos and Captain Morgan. As a market leader, Diageo’s scale provides meaningful competitive advantages in terms of distribution and marketing, which enables the company to invest more than its peers while still generating strong returns on capital. In addition, we like that the company’s portfolio is well diversified by geography and category, which helps mitigate against earnings volatility related to economic cyclicality and shifting consumer preferences. Industry destocking and what we believe is temporary weaker demand have weighed on the share price recently, which provided an attractive re-entry point to invest in this dominant beverage company at a below-average price.”