Five interesting things that Hodges Capital research analysts discovered this week...
#1 Luxury Autos: As of August, there are roughly 33 models for sale with an MSRP above $100,000, compared with just 18 options below $30,000, according to Cox Automotive.
#2 Small-Cap Earnings Growth: The 2026 growth outlook for small caps has improved significantly and now outpaces large-cap peers, according to Strategas. Year-over-year earnings growth for the S&P 600 is forecast to exceed 20% starting in 1Q26, compared with a high-teens forecast for the S&P 500.
#3 Value of a College Education: A new Gallup survey finds that only 35% of Americans consider a college degree “very important.” That’s down 16 points since 2019 and a steep 40 points since 2010.
#4 Cash Reserves: Retail investors’ cash allocation stood at 16.5% in August—one of the lowest readings in four years and well below the long-term average of 23% since 1987, according to a recent AAII survey.
#5 Artificial Intelligence: Since ChatGPT’s launch in November 2022, 75% of S&P 500 returns have been attributed to AI-related stocks, per J.P. Morgan.
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.