1 Stock I'd Buy Before DEO in 2026

By Marc Guberti – Jan 9, 2026 at 2:27AM ESTKey PointsAlcohol consumption has been dropping sharply among younger generations, and that's a multidecade trend. Those same younger adult consumers are more active in financial markets and prediction markets than prior generations, which bodes well for Robinhood.Robinhood is delivering exceptional growth across key financial products while boosting trading volume on its platform.We’re bullish on these 10 stocks ›NASDAQ: HOODRobinhood MarketsMarket Cap$104BToday's Changeangle-down(-1.35%) $1.58Current Price$115.39Price as of January 8, 2026 at 4:00 PM ETDiageo sells alcohol, but Gen Z isn't as interested in grabbing a beer as the boomers and Gen X are.Diageo (DEO +2.14%) is an alcoholic beverage company that's seeing a bad time for the industry. Gen Zers and millennials are curbing their drinking habits, and the trend has played out for multiple decades. Alcoholic beverage companies have relied heavily on baby boomers for sales, but as they age, that formula leaves questions about Diageo's long-term potential. The company's stock is down by almost 30% over the past year. The bad performance coincides with a 0.1% revenue decline and 1.7% year-over-year organic sales growth in fiscal 2025, which ended June 30. And in the following quarter, reported next sales fell by 2.2%, while organic sales were flat. These weak results explain why the stock has struggled, and the outlook doesn't point to a meaningful recovery. In its latest earnings release, management pointed to "a softer U.S. consumer environment than planned for." That does not bode well for the company's near future. For investors looking to pick stocks that are benefiting from consumer trends rather than losing ground due to them, Robinhood (HOOD 1.35%) might be a better option. Gen Z appears more focused than previous generations on investing, prediction markets, and saving money. These three options have varying risk levels, and Robinhood serves them all. Here's what else you should know about the fintech stock. Prediction markets are heating up Image source: Getty Images. Although Gen Z isn't drinking as much, they are the dominant demographic behind the rise of online sports betting. Gen Z and millennials have been chasing speculative assets for some time now in the hopes of striking it rich, and financial institutions have benefited from this trend. Advertisement ExpandNASDAQ: HOODRobinhood MarketsToday's Change(-1.35%) $-1.58Current Price$115.39Key Data PointsMarket Cap$104BDay's Range$113.87 - $117.3252wk Range$29.66 - $153.86Volume20MAvg Vol26MGross Margin89.78% Robinhood doesn't technically offer sports betting, but it does run a prediction market that includes event contracts for sporting events. The line between sports betting sites and prediction markets is thin -- both allow investors to put money on the line and profit if the outcome plays out as they predicted. Event contracts relating to professional and college football games became available on Robinhood in August. Since that launch, trading volume on Robinhood's prediction market has surged. Total contracts traded more than doubled sequentially to 2.3 billion in Q3, and speculators traded 2.5 billion contracts in October. This hot segment should continue to experience meaningful demand as more types of event contracts are added. Investing activity continues to act as a major catalyst Prediction markets aren't the only catalyst that is propelling Robinhood's business and its stock. Transaction-based revenue increased by 129% year over year in Q3, including crypto-related revenue that more than quadrupled year over year. The pickup in investment activity also comes with higher margin balances. Robinhood told investors in its Q3 press release that its interest income increased by 66% year over year. Lower short-term interest rates offset some of the impact of high balances, but the results still reflected meaningful trading volume increases and highlighted interest as a source of recurring revenue for Robinhood. So, while Gen Z isn't drinking as much, more of its members are involved in financial markets. Companies like Robinhood are better positioned for long-term stock gains than alcoholic beverage giants like Diageo.Read NextOct 1, 2025 •By John BallardThe Secret to Finding the Next Amazon Is Hiding in Plain SightDec 25, 2021 •By Will Healy2 Robinhood Stocks to Buy Before the Year EndsDec 15, 2021 •By James Brumley4 Robinhood Stocks Investors Can't Get Enough OfAug 17, 2021 •By John BallardCould Robinhood Stock Help You Become a Millionaire By 2030?About the AuthorMarc Guberti is a Certified Personal Finance Counselor and has been a contributing Motley Fool stock market analyst since 2025. He has written for several finance publications. Marc graduated from Fordham University with a finance degree. He is an avid marathon runner who aims to complete more than 100 marathons in his lifetime. His fastest marathon time is 2:40.TMFmarcgubertiStocks MentionedRobinhood MarketsNASDAQ: HOOD$115.39 (0.01%) $1.58Diageo PlcNYSE: DEO$86.94 (+0.02%) $+1.82*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.Advertisement