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

#1 OBBA TAX TAILWIND: One reason both company earnings and business confidence are rising is the capex-related tax savings from the OBBA legislation. In the third quarter, corporate taxes declined by $55 billion, with another decrease likely in the fourth quarter as the Treasury finalizes write-off details. Note: OBBA also applies to non-corporate businesses. Economy-wide, these savings should provide a tailwind for profits, investment, and employment in 2026. (Piper Sandler)

 #2 HAVE YOU HERD? The Trump administration removed reciprocal tariffs on more than 200 agricultural products that the U.S. cannot produce in sufficient quantities and also eliminated the 10% global tariff on all beef imports, effective immediately. Ground beef is expected to see the biggest impact, as imported lean trimmings can be blended with higher-fat domestic trimmings. Most beef imports will still face a 26.4% tariff on volumes above their quotas, and Brazil already hit its quota in January, with an additional 40% tariff on its shipments remaining in place. The U.S. imports most of its beef from Australia, Canada, Brazil, and Mexico, with Canada and Mexico exempt from quotas under USMCA. The administration also quadrupled Argentina’s beef quota, though it will still amount to only about half of Mexico’s import volume. (Hedgeye) 

#3 ONLINE GROCERY GROWTH: Online grocery sales rose 10.5% year over year in October, slowing from September’s 31% surge, according to the latest Brick Meets Click survey. Growth was driven primarily by a 13% increase in monthly active users, while orders per user edged up less than 1%. Overall, the digital share of grocery spending for the month increased 110 bps to 16.3%. (Hedgeye)

#4 TEXAS-SIZED INSIGHTS: Rob Holmes, CEO of Texas Capital, commented that “82% of people born in Texas stay in Texas, and Texans like to do business with other Texans.” (Dallas Morning News)

#5 LONGER MORTGAGES, HIGHER RISK: A 50-year mortgage would dramatically increase the total interest a homeowner pays and slow the pace of equity buildup. For example, on a $400,000 home with 20% down at a 6.22% rate, the monthly payment on a 50-year loan might be about $200 less than on a 30-year loan—yet the borrower would ultimately pay roughly $335,000 more in interest. And that assumes 50-year rates match 30-year rates, which is unlikely, meaning even the modest monthly savings would probably disappear. Meanwhile, homebuilders offering mortgage subsidies can keep sale prices high, and buyers who use builder financing often end up overpaying and potentially owing more than their home is worth once they move in. (Piper Sandler; Wall Street Journal)

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