5 Best Investments During High Interest Rates

In this article, we discuss 5 best investments during high interest rates. If you want to read our detailed discussion on the stock market outlook and the industries benefiting the most due to high interest rates, head over to 10 Best Investments During High Interest Rates.

5. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 81

Walmart Inc. (NYSE:WMT) is a giant in global retail, wholesale, and related operations. On August 17, Walmart Inc. (NYSE:WMT) reported a Q2 non-GAAP EPS of $1.84, beating Wall Street estimates by $0.13. The revenue of $161.63 billion went up by 5.9% year-on-year, also exceeding market consensus by $2.35 billion. In August, Walmart Inc. (NYSE:WMT) reported that its customers were experiencing the impacts of rising inflation, prompting shifts in their shopping behaviors. Doug McMillon, the company’s CEO, noted that Walmart Inc. (NYSE:WMT) was adapting to this new reality, according to The New York Times. This makes Walmart Inc. (NYSE:WMT) one of the top picks for investment options during high interest rates.

According to Insider Monkey’s second quarter database, 81 hedge funds were bullish on Walmart Inc. (NYSE:WMT), as compared to 91 in the prior quarter. D E Shaw is the largest stakeholder of the company, with 5.4 million shares worth approximately $862 million. 

Here is what Leaven Partners has to say about Walmart Inc. (NYSE:WMT) in its Q3 2022 investor letter:

“In our last quarterly letter, I briefly mentioned that the consensus estimates for corporate profits appeared to be a bit too sanguine. I referenced a Reuters article that reported, as of June 17, Wall Street expected S&P 500 earnings to grow by 9.6% in 2022, which was up from 8.8% in April and from 8.4% in January. That tune began to change at the end of July and accelerated in August and September, as major players, such as Walmart (NYSE:WMT), has recently issued profit warnings and/or have withdrawn guidance. In response, Wall Street has altered its outlook: lowering third-quarter profit growth to 4.6% from 7.2% in early August and slashing full-year profit growth to 4.5%.”