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

#1 2Q24 EARNINGS SEASON: As the second quarter earnings season kicks off this week, consensus expectations, according to FactSet, are for S&P 500 earnings to increase by 9.6% year-over-year on average revenue growth of 4.5%. Key conference call topics for investors will likely include capital spending plans, artificial intelligence investments, and potential cracks in consumer spending.

#2 TEXAS CEMENT: The latest data from the Texas Comptroller's Office indicated that May cement shipments in the State were down just over 12% from a year ago.  We believe supply and demand conditions in Texas remain structurally tight, and lower shipments in May reflect the temporary effects of wet weather in Dallas and Houston.    

#3 CEO EDUCATION: A recent survey by Strategas on the educational credentials of Fortune 500 CEOs' undergraduate degrees found that 274 discrete institutions were represented, and 25 of these CEOs had no degree at all. The institution with the most Fortune 500 CEOs was the University of Pennsylvania, totaling 14.   

#4 RENEWABLE ENERGY:  According to a new Pew survey, support for renewable energy has declined, with only 72% of Americans in favor of expanding wind power compared to 83% in 2020.   

#5 SMALL-CAPS MAKE HISTORY: Early this week, the Russell 2000, a measure of small-cap stocks, closed 4.4 standard deviations above its 50-day moving average. According to research from Sanders Morris, no other major index (Dow since 1900, S&P 500 Since 1928, and Nasdaq since 1971) has closed at such an extreme.

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