Updating your Conservative stocks: Diageo, Motorola Solutions and Canon

Article Excerpt

DIAGEO PLC ADR $175 (www.diageo.com) is still a hold. The U.K.-based maker of premium alcoholic beverages has suspended exports to Russia in response to its invasion of Ukraine. It also stopped making beers in Russia, which are brewed locally under licence by third parties. Russia accounts for just a small portion of its sales, so these moves will have little impact on its earnings. However, the stock trades at a somewhat high 24.6 times the company’s projected fiscal 2022 earnings of $7.10 per ADR. Diageo is a hold. MOTOROLA SOLUTIONS INC. $210 (www.motorolasolutions.com) is a buy. The company makes communications equipment and high-definition surveillance systems. Due to acquisitions and stronger demand for its products, Motorola now expects its revenue will rise 7% in 2022. As well, its earnings should improve to between $9.80 a share and $9.95 a share compared to $9.15 in 2021. The stock trades at a reasonable 21.3 times the midpoint of that range. The stock is a buy. CANON INC. ADRs $24 (www.canon.com) is a hold. The company’s sales…

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