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

#1 BLACK GOLD: According to a report from Strategas, only one sell-side firm out of the 19 that regularly publish a crude oil market has an oil forecast north of $70 for WTI by the end of 2021. We believe such complacency in Wall Street’s view of the commodity could signal a contrarian opportunity among many unloved energy related stocks in the coming months.
#2 TEXAS LAND RUSH: According to a recent bulletin from Texas A&M the surge in demand for rural land that started in 2020 has turned into a frenzy in 2021 with average prices in the State soaring 9.5% year to date to a record $3,251 per acre.

#3 USED CARS REMAIN HOT: The Manheim U.S. Used Vehicle Value index pushed to a new historical high last week, which reflected a 48.1% year/year increase from May of 2020. Higher prices are a function of heightened demand for used vehicles and should translate into higher profit margins for used car dealerships.

#4 THE ROLE OF PHARMACISTS MAY EXPAND: “The Pharmacy and Medically Underserved Area Enhancement Act” was introduced by Senator Charles Grassley (R-IA), Senator Robert Casey (D-PA) and Senator Sherrod Brown (D-OH) according to BTIG. The bill would allow pharmacists to deliver some Medicare Part B services that are already authorized under state law, and may include medication management, management of chronic disease, cholesterol testing, point of care testing, immunization screening, tobacco cessation services, and transition of care services.

#5 THE RESTAURANT RECOVERY CONTINUES TO ROLL: As recovery continues, restaurant sales accelerated during the week and posted its 11th consecutive week of growth and the best results in the last six weeks. Guest checks continue growing at an accelerated pace, both year over year as well as compared to 2019.

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