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.

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