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.
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