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

#1 CONSUMER CREDIT USAGE: Consumer credit card usage has increased over the past year. However, according to Strategas, the consumer is not tapped out yet, with revolving credit as a percentage of disposable income at 6.2% compared to an average of 6.6% from 2012 to 2019.

#2 CEO PAY: Barrons recently reported that the average annual pay of an S&P 500 CEO is $14.5 million compared to the equivalent of $4.5 million for a CEO in the London-based FTSE 100.        

#3 GEN Z CONSUMER TRENDS: A recent survey of teens conducted by Piper Sandler indicated that for upper-income teens, food was the number one priority for male spending at 24% of wallet share, while clothing remains at the top of female wallet share at 28%, down from 30% last Fall.      

#4 AMERICAN PESSIMISM: A recent Wall Street Journal survey has revealed that pessimism among Americans is at a record high. In addition to being stressed about their immediate financial situation, 78% of adults said they are not confident that their children’s lives will be better than their own, up 11% from 2019.  

#5 MEATPACKERS: University of California/Davis data estimates that four firms process 85% of US beef. A lack of competition among meatpackers, drought, and rising input costs has weighed on the profits of cattle producers over the past several years.

Hodges Private Client is a program offered through Hodges Capital Management, Inc. (“HCM”). HCM is an Investment Advisory Firm registered with the Securities and Exchange Commission (“SEC”), is a wholly owned subsidiary of Hodges Capital Holdings and serves as investment advisor to the Hodges Funds. HCM is affiliated with First Dallas Securities, Inc, a broker-dealer, and investment advisor registered with the SEC.

This discussion is not intended to be a forecast of future events and should not be considered a recommendation to buy or sell any security. Past performance is not indicative of future results. Investing involves risk. Principal loss is possible. Investing in smaller companies involves additional risks such as limited liquidity and greater volatility. No current or prospective client should assume that information referenced in this communication is a recommendation to buy or sell any security or is a substitute for personalized investment advice from your individual advisor. HCM does not provide tax or legal advice. Consult your tax or legal advisor for any related questions.

All information referenced herein is from sources believed to be reliable and is provided as general market commentary and does not constitute investment advice. This material was created for informational purposes only and the opinions expressed are solely those of HCM. HCM shall not in any way be liable for claims and makes no expressed or implied representations or warranties as to the accuracy or completeness of the data and other information. The data and information are provided as of the date referenced and are subject to change without notice.