Five interesting things that Hodges Capital research analysts discovered this week...
#1 CONTAINER IMPORTS PICKING UP: The number of loaded containers arriving at the largest U.S. ports has turned positive on a rolling 12-month basis after increasing 15% y/y and 5% sequentially in September. This freight will have to be moved inland and should provide a tailwind for railroads and trucking companies.
#2 AI AGENTS: AI's biggest impact over the past year has been on software developer productivity. Our technology analyst, Brian Gerber, is using insights from company discussions and industry thought leaders to identify investment opportunities over the next 12 months, particularly in AI agents that improve personal productivity and e-commerce.
#3 LESS IMPORT PRESSURE, MORE PRICING POWER: Our recent discussions with several steel companies suggest that steel imports are down significantly again this year due to Section 232 tariffs and other trade restrictions. For some types of steel, imports are down 30–40% from pre-tariff levels, creating greater pricing power for domestic mills. Assuming North American steel demand remains solid, recent pricing momentum should provide a favorable tailwind for U.S. steel industry profit margins heading into 2027.
#4 FEDERAL EMPLOYMENT: In September 2026, civilian federal employment stood at 2.68 million people, down 8% from the previous year, according to USAFacts.
#5 NFC LEAST: For the first time since the AFL-NFL merger in 1970, an NFL division has gone two consecutive weeks without any of its teams posting a victory, according to WFAA. The NFC East went a combined 0-6-2 over Weeks 5 and 6.
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