Five interesting things that Hodges Capital research analysts discovered this week...
#1 Indicator or False Flag: Recent import data from retail giants Target and Walmart suggests that the effects of tariffs may finally be taking hold. After heavy frontloading of imports in July, both companies reduced their intake of foreign goods by roughly 85% in August. Following multiple delays in the administration’s tariff rollout, this shift may signal that the impact is now beginning to reach U.S. businesses.
#2 Home Cooking: Mounting criticism of Cracker Barrel’s attempted logo redesign led the company to announce it will revert to its original logo. The change followed earlier efforts to modernize the chain, including layout updates at select locations across the country. Reports indicate that certain directors were strongly opposed to the redesign but were ultimately outvoted. Shares of Cracker Barrel rebounded after the reversal was announced on Tuesday the 26th.
#3 Nvidia Continues March: In one of the most anticipated earnings reports of the season, Nvidia’s 2Q2025 results showed remarkable consistency. The company posted year-over-year revenue and net income growth of 56% and 59%, respectively. While a slight miss in its data center division raised some concerns, Nvidia’s forward guidance of $54 billion in 3Q2025 revenue prompted at least 10 firms to raise their price targets. Despite a brief slide earlier in the year, the Nvidia train continues to gain momentum. (AP)
#4 Tie Up Your Boots: Sycamore Partners has announced a $10 billion deal to acquire Walgreens Boots Alliance and take the company private. After years of declining sales and sliding share prices, Walgreens will no longer trade publicly. Staples CEO Mike Motz will succeed Tim Wentworth as CEO of the retail pharmacy chain, with a renewed focus on boosting front-of-store sales. (PE Hub)
#5 Tariff Tag-Team: Amid the ever-changing tariff landscape of 2025, the U.S. has found an ally to the south. Mexico announced that it will join the U.S. in raising tariffs on Chinese imports under its 2026 budget plan. The targeted goods include cars, textiles, and plastics. The move follows pressure from the Trump Administration and claims that Chinese products were entering Mexico and making their way cheaply into the U.S. (Bloomberg)
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.