Friday Fast Five - 11/19/2021
by Hodges Investment Team, on Nov 19, 2021 10:00:00 AM
Five interesting things that Hodges Capital research analysts discovered this week...
#1 PRICEY TURKEY: According to the U.S. Department of Agriculture, whole frozen turkey prices are up roughly 20% year over year to an all-time high. Due to the effects of inflation, mangled supply chains, heightened demand, and meatpacking shortages, grocery stores are looking sparse this season. Overall, families should anticipate the average Thanksgiving meal to be as much as 15% higher than last year.
#2 LABOR TRENDS: The October jobs report showed payrolls increased by 531K, and unemployment fell to 4.6%. However, according to the New York Times, the labor force participation rate did not improve, hovering around 61.6%. At the current participation rate, if unemployment fell back to the pre-pandemic level of 3.5%, employment would increase by 1.8 million and only fill 29% of the jobs lost during the pandemic.
#3 SOLAR POSSIBILITIES: A recent U.S. Department of Energy study noted that by 2035, solar energy has the potential to power 40% of the nation's electricity. According to the U.S. Energy Information Administration, renewable energy made up about 12% of 2020 total consumption, and solar accounted for roughly 11% of the renewable output.
#4 LACTOSE-INTOLERANT: Overall penetration of plant-based milk in the dairy category is still relatively low and ranges between 9-11% in major Western markets. The continued conversion from dairy is creating new opportunities for plant-based substitutes.
#5 COLLEGE ENROLLMENT: A year after college enrollment first declined due to the pandemic, enrollment numbers have continued to slide this year. The National Student Clearinghouse has reported that undergraduate registration for fall 2021 fell -3.2% from a year ago, which is a -6.5% drop from fall 2019.
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