Hodges Fast Five

Friday Fast Five - 1/6/2023

Written by Hodges Investment Team | Jan 6, 2023 1:00:00 PM

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

#1 MOBILE GAMING: Mobile gaming revenue is expected to decline for the first time ever. According to market research conducted by Ampere Analysis, 2022 mobile gaming revenue is set to fall by 6.4% or roughly $6B. Lower revenue is likely due to less ad revenue streaming from Apple’s (AAPL) new privacy settings that make personalized ads less effective.      

#2 CONSTRUCTION SPENDING: Non-residential construction spending in November 2022 increased 7% year-over-year, fueled by solid activity in manufacturing and civil infrastructure. (U.S. Census Bureau Data)    

#3 HIGHER EDUCATION: According to the New York Times, colleges whose prices have increased dramatically in recent years are now struggling with lower demand. Furthermore, the number of potential students to recruit is declining due to shifting demographics in recent years, resulting in the absolute number of graduates forecasted to peak in 2025 at 3.9 million.      

#4 HEALTHCARE ETF FLOWS: Recent data from Strategas ETF Research showed that in 2022 healthcare ETFs experienced record annual inflows of new money as investors sought a more defensive positioning in equities. Furthermore, the health sector’s weight in the S&P 500 hit a 50-year high of 16% at year-end.    

#5 EGG SUPPLY WOES: The HPAI (Highly Pathogenic Avian Influenza) has impacted 43.3-million-layer hens in the U.S., representing roughly 13% of the standard layer population. The most recent government statistics indicate that layer hens are down 6% year-over-year to 308 million, materially affecting the domestic egg supply.    

 

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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.