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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 - 12/16/2022

by Hodges Investment Team, on Dec 16, 2022 8:55:13 AM

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

#1 SUPPLY CHAIN SOFTWARE: The market for supply chain software exceeded $15 billion in 2019 and is expected to grow at a CAGR of 10% to exceed $24 billion by 2024, based on forecasts from SCM Software worldwide.

#2 BLACK GOLD: According to Strategas, oil expenditures are on pace to exceed the previous high of $679 billion that occurred in 2013 when oil averaged $98 bbls/day. U.S. demand is nearly back to the 2019 pre-pandemic levels, while the size of the Strategic Petroleum Reserve is at its lowest level since 1984.

#3 NFL FOOTBALL: The media rights for live sporting events are more valuable than ever, with the combined worldwide estimated at roughly $55 billion this year based on the finding published by SportsBusiness. The NFL is No. 1 in the world, with 15% of the sports media rights market in 2022.      

#4 SCHOOL BUS: According to Blue Bird Corporation, the North American school bus market is expected to grow at a 10% compounded growth rate over the next five years. School bus demand is expected to be partially supported by $1 billion in federal funding associated with the EPA Clean School Bus rebate program.

#5 YIELD CURVE: This week, we saw the Fed Funds rate trade above the 2-year yield for the first time this cycle. The last time the Fed Funds rate was 4.50% was in January 2006, when the market’s forward P/E was 15x compared to 17x today.


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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