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Hodges Friday Fast Five

"In the investment business, you go to school every day, but never graduate." - Don Hodges

Friday Fast Five - 6/11/2021

by Hodges Investment Team, on June 11, 2021

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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Hodges Capital Management, Inc. is a Federally Registered Investment Advisory Firm registered with the SEC. The above discussion is not intended to be a forecast of future events, a guarantee of future results, 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. Different types of investments involve varying degrees of risk. No client or prospective client should assume that any information provided is a substitute for personalized individual advice from the adviser or any other investment professional. The S&P 500 Index is a broad‐based unmanaged index of 500 stocks, widely recognized as representative of the equity market in general. The Russell 2000 Index consists of the smallest 2,000 companies in a group of 3,000 U.S. companies in the Russell 3000 Index, as ranked by market capitalization. You cannot invest directly in an index.

Hodges Friday Fast Five

We aim to help investors separate the news from the noise by providing our perspective. Every Friday the Hodges Capital research analysts list the five most interesting things they discovered that week. Subscribe to receive the Hodges Friday Fast Five in your inbox every Friday. 

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