Five interesting things that Hodges Capital research analysts discovered this week...
#1 AIR TRAVEL: According to the Transportation Safety Administration’s (TSA) airport checkpoint data, the number of airline passengers in April is tracking close to pre-pandemic levels. Furthermore, many major airlines have recently indicated that they are bracing for a record amount of travel this summer.
#2 INSIDER BUYING: The Wall Street Journal recently highlighted an uptick in insider buying after the spring banking turmoil. More than 1,000 corporate insiders at more than 600 public companies bought their stock during March, which far exceeded the number of insiders selling and represented the most significant buying since May 2022.
#3 SUBSCRIPTION ECONOMY: A survey by Morning Consult has shown that Millennials and Gen Zers are far more interested in subscriptions than older generations. The poll suggested that over 50% of Millennials (ages 27-42) and Gen Zers (ages 18-26) would be interested in paying for subscriptions in nine different categories.
#4 INDEX CONCENTRATION: A recent report from Strategas highlighted that Apple (AAPL) and Microsoft (MSFT) now comprise nearly 25% of the Russell 1000 Growth Index, the first time two individual stocks have held that much influence on the Index. Such concentration could create opportunities for active managers to differentiate themselves from ETFs that track such indices.
#5 EGG PRICES CRACK: According to numerous industry sources, commodity egg prices have seen one of the sharpest corrections on record, with a 57% tumble from $3.50/ dozen to $1.50/ dozen in the past four weeks. With no significant outbreaks of HPSA (bird flu) since December, the layer flock is back to roughly 314 million birds, the highest flock count in a year.
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