In a recently published article, we explored the 15 Best Large-Cap Value Stocks to consider as the economy braces for potential recessionary pressures. One of the key players in this analysis is General Mills, Inc. (NYSE:GIS), and we will assess its performance relative to other top large-cap value stocks during these tumultuous times.

The global equities market has been experiencing significant volatility, oscillating between bullish and bearish territory, with Goldman Sachs drawing attention to the defining characteristics of a bear market. This market condition is typically identified by a decline of 20% from recent peaks, signaling a shift in investor sentiment. Peter Oppenheimer, the chief global equity strategist at Goldman Sachs Research, has emphasized that examining historical bear markets may offer valuable insights into the potential duration and severity of current downturns.

Recent developments, such as the announcement by former President Donald Trump regarding a temporary 90-day pause on certain country-specific tariffs, led to a notable upswing in U.S. stock prices. However, Oppenheimer cautions that a sustained market rebound is not yet on the horizon. He points out that stock valuations will need to undergo further adjustments before equities can transition into a more optimistic phase, often referred to as the hope phase of the economic cycle.

What to Expect from Current Earnings Season?

As the Q1 2025 earnings season kicks off, analysts at Morningstar are urging investors to pay close attention to the guidance companies provide regarding their future outlooks. This year, the uncertainty surrounding tariffs is particularly pronounced, leading many firms to offer cautious or even vague forecasts. Tariffs can significantly affect corporate profitability, both directly by increasing import costs and indirectly through changes in consumer behavior. For some companies, the option to mitigate these rising costs involves passing them on to consumers through higher prices, while others may choose to absorb the costs, which can hurt their margins.

Morningstar, referencing consensus estimates from FactSet, reports that analysts are projecting a modest 6.8% earnings growth for S&P 500 companies in Q1. Looking ahead, the overall expectation for earnings growth in 2025 stands at 11.2%.

Amidst Tensions, Whats the Silver Lining?

Forward guidance, or the expectations companies set for future performance, plays a crucial role in shaping financial markets. Typically, when a company provides a warning about the potential for diminished profits, its stock price tends to drop. This trend can extend across the broader market. However, there remains a silver lining amidst the uncertainty. According to Dan Kemp, Morningstar's chief research and investment officer, it is essential to recognize that much of a company's real value is projected into the future. As a result, the immediate impact on a company's actual worth is expected to be limited. Kemp argues that when there is a widening gap between current stock prices and future intrinsic values, it creates fertile ground for savvy investors looking for opportunities in the market.