Hodges Fast Five

Friday Fast Five - 8/5/2022

Written by Hodges Investment Team | Aug 5, 2022 12:00:00 PM

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

#1 MORE COLD BREW PLEASE: Cold brew coffee servings increased 27% to 373 million in the 12 months ended April according to NPD/CREST. Servings of iced coffee remained the category leader at 2.8 billion servings growing 11% YOY.

#2 APPAREL/ FOOTWEAR: Wedbush Securities recently ran a survey of over 750 U.S. consumers to gauge sentiment given the current macro environment, as well as near-term spending plans. Surprisingly, they’re still planning to grow their apparel/ footwear spending in the near-term with 65% of individuals planning to spend more and only 19% who plan to spend less.

#3 ORANGE METAL SUPPLY: Based on data provided by Jefferies International, the major copper miners that have reported second-quarter represent 59% of global copper supply, and results have produced a combined 87.3kt of copper to represent a year-over-year decline of 0.5%. This data confirms antidotal evidence that while copper prices have been volatile this year, the physical supply for copper remains rational relative to demand.

#4 FUND FLOWS: Per Deutsche Bank, flows to equity funds flipped positive this past week ($5.6bn) following five consecutive weeks of outflows. Net equity inflows were driven by strong inflows to the US ($9.5bn), while Europe (-$3.6bn) continued to witness heavy redemptions and flows to other regions were modest.

#5 EARNINGS SEASON: According to Truist Securities, ~73% of S&P 500 reporting companies have surprised on EPS and 66% have reported revenue beats. If these figures hold, it would be the worst performance since 1Q20 and 2Q20 respectively.

 

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