- Diageo hopes tequila delivers a shot of success
- UnitedHealth's strategy convinces many analysts
Diageo has long been a bastion of quality on the UK stock market but this business with many outstanding and well-loved brands has some growth challenges. Our other company this week is a US healthcare giant that offers investors the potential for decent compound earnings growth at a reasonable price.
A great business with dominant brands, Diageo (and its closest competitors) face a tough market environment as the cost of living hurts middle class consumers. There is a strategy for growth but we discuss here whether the market dynamics that hold true for a drink like scotch whisky can be assumed for other spirits like tequila.
Our other company UnitedHealth Group also faces pressures (especially on profits made on prescriptions in its pharmacy business) but analysts have been convinced it can execute on its strategy for earnings growth, with digital healthcare services an area sparking optimism. There are questions to address but the decent compound earnings growth the forecasts point towards is available at a not overly expensive stock price.
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