Friday Fast Five - 3/3/2023
by Hodges Investment Team, on Mar 3, 2023 7:00:00 AM
Five interesting things that Hodges Capital research analysts discovered this week...
#1 GOOD NEWS: The American Cancer Society recently published an article indicating that the cancer death rate has declined by 33% since 1991. The progress increasingly reflects advances in treatment, which are particularly evident in the rapid declines in mortality for leukemia, melanoma, and kidney cancer. In addition to advancements in treatments, a drastic decline in smoking rates and early detection and prevention methods have contributed to improving cancer mortality rates.
#2 LEISURE TRAVEL: “If you've been following the travel industry, you know there is an optimistic view on leisure travel this year. In a recent survey, 77% of respondents said they are excited to travel this year, while nearly 50% of them have already begun researching trips. That said, leisure travel looks different than it did pre-pandemic. Recent research we conducted revealed that 80% of people surveyed would consider working remotely from a vacation destination as a way to extend the length of their trip, and this trend is expected to continue.” - John Geller, CEO of Marriott Vacations Worldwide.
#3 BEEF: The USDA’s National Agricultural Statistics Service (NASS) recently reported that the cattle herd totaled 89.3 million on January 1, the smallest in eight years. Drought conditions have reduced the U.S. herd size by 3% from a year ago, which will likely drive prices higher over the next few years.
#4 $21 BILLION IN UNSPENT GIFT CARDS: According to an article on CNN Business, almost two-thirds of American consumers have at least one unspent gift card tucked away in a drawer, pocket, wallet, or purse. And at least half of those consumers lose a gift card before they use it, according to a new report from Credit Summit, an online provider of financial advisory services. The report said there is as much as $21 billion of unspent money tied up in unused and lost gift cards. Of those surveyed, a majority of respondents said their unredeemed cards were worth $200 or less.
#5 FOREIGN COMPETITION: "Our residential building and construction business has decreased drastically over the past few months due to mortgage rate increases, inflation, and other factors. One major factor affecting our industry is foreign competitors dumping product into the U.S. at lower prices than their domestic prices—and lower than U.S. producers’ prices. Mexico, India, Colombia, Ecuador, Vietnam, Malaysia, Turkey, and Poland are among countries exporting aluminum extrusions to the U.S. at record levels." – Quote from a survey participant in The Dallas Fed Texas Manufacturing Outlook Survey.
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