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

#1 COMMODITIES: Since 1972, commodities have returned ~19% and outpaced the S&P 500 by 900 basis points in every rate hike cycle. – Goldman Sachs  

#2 RETAIL RETURNS: A recent survey conducted by the National Retail Federation indicates that retailers expect to get back about 16.6% of the total merchandise that customers purchased in 2021. This compares to an average return rate of 10.6% in 2020.  

#3 FOOD INFLATION: The USDA’s latest Food Price report shows that food prices in December 2021 were 6.3% higher than the previous year. Beef and veal had the largest price increase at 9.3%.

#4 SUPER BOWL LVI: Anheuser Bush InBev announced its return to advertising during the Super Bowl. Last year was the first year in 37 years the company did not have a commercial during the preeminent TV event of the year. – Hedgeye Risk Management

#5 SHAREHOLDER RETURN: “We have gone with a bit of an all-of-the-above approach in the way that we think about returning cash to shareholders. The reason that I think it’s important to include a variable dividend in that all of the above approach as opposed to going all with the buyback is that there is cyclicality in the way that our stocks trade. There is value in the predictability of knowing that the dividends can be estimated with a formula.” – Domenic Dell’Osso, CEO of Chesapeake Energy Corporation

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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.