Friday Fast Five - 11/6/2026
by Hodges Investment Team, on November 6, 2026
Five interesting things that Hodges Capital research analysts discovered this week...
#1 BIG PLANS, BIGGER BUILDS: “Dodge’s updated projection is for nearly $723 billion in U.S. megaproject starts in 2026, well above the level we saw in 2025. For 2027, Dodge is currently projecting about $776 billion in megaproject starts, with trillions of dollars more still working through the planning stages.” (Earnings call)
Our observations from commentary by several companies and their customers during this earnings season have increased our confidence in businesses that will directly or indirectly benefit from large-scale and megaproject construction activity in the U.S. over the next 2–3 years.
#2 A BLOCKBUSTER YEAR AHEAD: The 2027 film slate is already pacing ahead of 2026 levels, and there is a good chance that total film volume in 2027 will exceed pre-pandemic levels. (Earnings call)
A primary concern for the movie theater industry has been the lack of film volume due to COVID-related delays, writers’ strikes, and studio consolidation. However, it appears these disruptions and concerns may finally be in the rearview mirror.
#3 RESIN RETREAT OFFERS MARGIN RELIEF: A company noted that its margins were meaningfully impacted by a 76% spike in polyethylene resin costs from March to May, but resin prices have since retreated by roughly 33%. (Earnings call)
We expect companies with significant resin exposure in their cost of goods sold (COGS), particularly plastics manufacturers, to see a meaningful rebound in gross margins in their fourth-quarter results.
#4 THE MIDTERM MARKET EFFECT: Since 1946, stocks have been higher one year after every midterm election, including all four instances when both the House and Senate flipped to the party opposing the president. (Bloomberg, citing Truist)
We found that the S&P 500 has averaged a 12-month return of approximately 15–16% following midterm Election Day. We thought this historical perspective might offer some encouragement and reassurance to investors, regardless of how they viewed the election results.
#5 THE EARNINGS ENGINE KEEPS RUNNING: Approximately 82% of reporting S&P 500 companies have delivered positive earnings-per-share (EPS) surprises, while roughly 70% have exceeded revenue estimates. Thus far, the blended earnings growth rate is holding just above 30%, which would mark the third consecutive quarter of earnings growth above 25% for the index. (FactSet commentary)
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