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

#1 "YOU’RE IN EXPENSIVE HANDS": The average U.S. auto insurance premium reached $2,000 per year in April, continuing a steady climb that began in 2021. According to The Car Dealership Guy, Tesla’s Model X and Model 3 now cost approximately $4,000 annually to insure, with the Model X experiencing a 125% year-over-year increase. High repair costs, technological complexity, and increased claim frequency are fueling the rise. Florida, New York, and Louisiana rank among the most expensive states, with average annual premiums exceeding $3,500. In Louisiana, buyers spend 6.8% of their annual income on car insurance—more than double the national average of 3%, according to Bankrate.

#2 SURPRISE: New home sales unexpectedly jumped 10.9% month-over-month to a seasonally adjusted annual rate of 743,000—well above the consensus estimate of 694,000. According to Piper Sandler, the April figure marks the highest level since February 2022 and now slightly exceeds pre-COVID levels. March new home sales were revised downward by 54,000 units, and indicators such as mortgage applications, housing starts, and permits remain lackluster. Regional performance was mixed but mostly positive: the Midwest rose 35.5%, the South increased 11.7%, and the West was up 3.3%, while the Northeast declined 14.8%. Median home prices fell 0.4% month-over-month and are now 12% below their October 2022 all-time high.

#3 BILLION-DOLLAR FEBRUARY: According to Front Office Sports, NBC Sports is generating considerable buzz over its programming plans for February 2026. The network is preparing for one of the most significant periods in modern sports history, with Super Bowl LX, the Milan-Cortina Olympics, and the 2026 NBA All-Star Game all airing within a 17-day span. NBC also announced it will bring on Michael Jordan as a special contributor for its NBA coverage. Fox grossed over $800 million from Super Bowl LIX, which attracted the largest audience in U.S. television history. The 2026 Winter Olympics will benefit from a six-hour time difference between the U.S. East Coast and Italy—far more favorable than the schedules of the last two Winter Games.

#4 S&P 500 MARGINS: According to Strategas, S&P 500 margin estimates have declined by 30 basis points from their respective cycle highs and now stand at 17.6%. This trend is worth monitoring as we approach the conclusion of the 90-day tariff pause this summer. A notable takeaway from this earnings season has been the rising frequency of mentions of higher costs on S&P 500 earnings calls. While these mentions remain below the peaks observed during the height of the 2022 inflation spike, they are showing a meaningful increase.

#5 S&P 500 DIVIDENDS: On a per-share basis, S&P 500 Q1 2025 dividend payments declined 2.2% to $19.37 from Q4 2024’s record of $19.81, but rose 7.3% compared to Q1 2024’s $18.06. According to S&P Global, 407 companies—or 80.9%—within the S&P 500 currently pay a dividend, consistent with Q4 2024 and up from 404 in Q1 2024.

 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.