Five interesting things that Hodges Capital research analysts discovered this week...

#1 AUTO-LOAN DELINQUENCY: A recent article in Bloomberg revealed that more Americans are falling behind on their car payments than during the financial crisis.  In December, the percentage of subprime auto borrowers who were at least 60 days late on their bills rose to 5.67%, up from a seven-year low of 2.58% in April 2021, according to Fitch Ratings.  That compares to 5.04% in January 2009, the peak during the Great Recession.  

#2 REMOTE BENEFITS: A working paper published by the National Bureau of Economic Research indicated that working from home saved the average US employee 55 minutes per day by skipping the commute. Workers allocated 42% of their time savings to their jobs, 35% to leisure activities, and about 8% to caregiving activities.

#3 GOLF ENTHUSIASM: According to National Golf Foundation, total golf participation was up 9% last year to 41 million people. On-course golf increased by 500,000 participants, while off-course increased by 3.1 million participants.

#4 GREEN ACRES: According to the USDA, net farm income hit a record in 2022. The USDA is now forecasting net farm income to fall 16% in 2023 due in part to cost pressures and lower commodity prices. Although lower in 2023, farm income is still expected to be above average for the past two decades.

#5 EQUIPMENT DEMAND: “I’m not going to make a 79 percent operating ratio because I saved money on trailers. I’m going to make a 79 percent operating ratio because I have trailers.” Frederick Holzgrefe, CEO of Saia

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