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 GLOBAL POPULATION: Based on UN estimates, the world's population is now believed to have reached 8.0 billion. The global population has increased significantly over the past several decades and has almost tripled between 1950 and 2020.

#3 TANK BARGES: According to Current Data, LLC, the inland tank barge market has grown annually at 1.9% over the last twenty years and 1% over the previous five years. Our industry sources suggest that tank barge utilization is well north of 90%, and no material new barge construction has occurred in 2022 due to historically high prices for new barges. Such market conditions could be a positive for inland barge operators in the year ahead.

#4 HEALTHCARE LABOR HEADWINDS: The Wall Street Journal reported that since the start of the pandemic, hospitals have been facing unprecedented margin pressures as nearly 20% of their workforce quit. The massive exodus of healthcare workers drove up the salaries of those who stayed while limiting hospitals' capacity to provide services. The lower capacity and perhaps lingering concerns about Covid-19 among the elderly meant many patients postponed lucrative procedures such as hip replacements. That trend is now finally starting to reverse.

#5 DIGITAL TRUST: A recent study conducted by McKinsey found that as organizations collect and analyze more customer data, they are more likely to encounter more reputation risk and compliance issues. At the forefront are businesses in industries that handle highly sensitive data, such as information technology and electronics, financial services, healthcare, and aerospace and defense.

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