ABEV vs. DEO: Which Stock Offers Better Value at This Time?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 12 2025
0mins
Source: NASDAQ.COM
Comparison of Ambev and Diageo: Ambev (ABEV) has a Zacks Rank of #2 (Buy) indicating a positive earnings outlook, while Diageo (DEO) has a Zacks Rank of #5 (Strong Sell), suggesting ABEV is the better undervalued stock option for investors.
Valuation Metrics: ABEV's forward P/E ratio is 14.46 and PEG ratio is 2.75, compared to DEO's forward P/E of 14.85 and PEG ratio of 4.38, highlighting ABEV's more favorable valuation metrics.
Value Grades: ABEV has a Value grade of B, while DEO has a Value grade of D, further supporting the argument that ABEV is the superior value investment at this time.
Technological Investment Opportunities: The article also discusses the potential of artificial intelligence and quantum computing in reshaping investment landscapes, suggesting that early investors in certain stocks could see significant gains.
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Analyst Views on DEO
Wall Street analysts forecast DEO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DEO is 88.46 USD with a low forecast of 24.85 USD and a high forecast of 131.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 88.750
Low
24.85
Averages
88.46
High
131.00
Current: 88.750
Low
24.85
Averages
88.46
High
131.00
About DEO
Diageo plc is a United Kingdom-based international manufacturer and distributor of premium drinks. The Company offers beverage alcohol with a collection of brands across spirits and beer categories. Its segments include North America, Europe, Asia Pacific, Latin America and Caribbean, Africa, and Corporate and other. The SC&P segment manufactures products and includes production sites in the United Kingdom, Ireland, Italy, Guatemala and Mexico, as well as comprises the global procurement function. Its principal products include scotch whisky, whisk(e)y, vodka, tequila, gin, rum, liqueurs, beer, wine, and non-alcoholic spirits. Its collection of brands includes Johnnie Walker, J&B and Buchanan's whiskies, Smirnoff, Ciroc and Ketel One vodkas, Captain Morgan, Don Julio, Guinness, and Tanqueray, among others. It offers Ritual Zero Proof Non-Alcoholic Spirits (Ritual). It owns manufacturing production facilities across the globe, including distilleries, breweries, and packaging plants.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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