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Hodges Friday Fast Five

"In the investment business, you go to school every day, but never graduate." - Don Hodges

Friday Fast Five - 12/02/2022

by Hodges Investment Team, on Dec 2, 2022 7:00:00 AM

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

#1 FOOD INFLATION: Since late 2021, food-at-home inflation has outpaced restaurant inflation by roughly 4%, according to an analysis by Stifel. As commodity prices come down, this trend could allow restaurants to maintain the price increases realized over the past year.

#2 FARM EQUIPMENT: Based on our internal research efforts, agriculture equipment producers could be looking forward to another strong year in 2023 based on positive farm fundamentals and aging fleet dynamics. Farmers also need new precision farming technology to help boost productivity and control input costs.

#3 FALLING HOME PRICES: Home prices in the U.S. have continued to soften, with the FHFA data flat sequentially in September and the Case-Shiller index down -1.2%. With the combination of elevated mortgage rates from a year ago and lower U.S. consumer confidence in November, further price declines could be in store in the coming months.

#4 TITLE 42: Recently, a U.S. District Court ordered the end of Title 42, enacted at the onset of COVID, for the immediate deportation of apprehended migrants crossing the border. Assuming Title 42 is terminated on December 21st, the revocation could increase demand for ICE detention capacity that is entirely outsourced to private contractors.

#5 SHOOTING SPORTS: According to the National Shooting Sports Foundations, gun sales during Black Friday were one of the top 10 busiest days in history based on criminal background checks on purchases. An estimated 192,749 background checks reflected a 2.8% increase for the same period a year ago.


Hodges Private Client is a program offered through Hodges Capital Management, Inc. (“HCM”). 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.

Hodges Friday Fast Five

We aim to help investors separate the news from the noise by providing our perspective. Every Friday the Hodges Private Client research analysts list the five most interesting things they discovered that week. Subscribe to receive the Hodges Friday Fast Five in your inbox every Friday. 

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