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Highlights:
- The HON stock rose about five per cent in 2022.
- Honeywell expects its net sales to be as much as US$ 35.7 billion in fiscal 2022.
- Walmart Inc.'s (WMT) revenue jumped over eight per cent YoY in Q3 FY23.
The ongoing year has been challenging for market participants, with several stocks witnessing a significant decline. The higher interest rate campaign by the Federal Reserve moved in tandem with high inflation throughout the year, forcing the investors to run for the hills.
The central bank has raised the borrowing costs at its fastest pace in multi-years to rein in the four-decade high inflation. Meanwhile, the Federal Reserve has raised the policy rates six times in 2022, with many anticipating further hikes in the coming time.
Higher interest rates generally force consumers to cut spending, resulting in cooling demand. Having said that, the companies also cut their investment operations, especially when the debt cost is higher, which has drifted the investors' spirit so far.
In addition, the soaring policy rates bolstered gains in the US Treasury yields, making it more attractive to some traders than the stocks. All three benchmark US indices were in the bear market territory in 2022, with the S&P 500 index noting its worst first-half performance in years.
Meanwhile, investors might be keeping a close watch on the blue-chip stocks for cues on the impact of the economic headwinds on their performance.
Today, we will explore two blue-chip stocks, which include Honeywell International Inc. (NASDAQ: HON), and Walmart Inc. (NYSE: WMT), and their recent key highlights.
Honeywell International Inc. (NASDAQ:HON)
The American conglomerate firm engaging in industrial services, Honeywell International's dividend yield was 1.9 per cent. The company's stock specializing in aerospace, building technology, and other related services, rose nearly five per cent YTD.
The HON stock growth was flat on an annual basis and gained around 31 per cent in the running quarter.
In Q3 FY22, Honeywell International's sales rose six per cent YoY to US$ 8.95 billion, and its EPS was up 27 per cent YoY to US$ 2.28 apiece. For fiscal 2022, the industrial conglomerate firm expects its net sales to be between US$ 35.4 billion and US$ 35.7 billion, with organic growth between six per cent to seven per cent.
Walmart Inc. (NYSE:WMT)
The leading American retailer, Walmart Inc's dividend yield was 1.48 per cent. The hypermarket and discount chain operator's stock surged about five per cent YTD and around four per cent YoY.
Walmart Inc's revenue rose 8.7 per cent YoY to US$ 152.8 billion in Q3 FY23, and its adjusted operating income rose 3.9 per cent YoY to US$ 6 billion.
Bottom line:
The mounting uncertainties in the market have made investors stay on the sideline. Meanwhile, the hovering economic headwinds have also raised concerns about the future performance of blue chip stocks.
But, the recent set of economic data suggested that inflation has cooled off in the last month in the wake of higher interest rates. In addition, investors might focus on the retail and consumer sector in recent days as the holiday season begins.
While many anticipate that the higher rates could tip the economy into a recession, the recent retail sales data showed that the consumers maintained stable spending last month.
However, despite the positive economic data, investors should tread cautiously with their investment plans. Notably, the Dow Jones Industrial Average plunged over four per cent YoY and about six per cent YTD.
