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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 - 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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Hodges Private Client is a program offered through Hodges Capital Management, Inc. (“HCM”). HCM is an Investment Advisory Firm registered with the Securities and Exchange Commission (“SEC”), is a wholly owned subsidiary of Hodges Capital Holdings and serves as investment advisor to the Hodges Funds. HCM is affiliated with First Dallas Securities, Inc, a broker-dealer, and investment advisor registered with the SEC.

This discussion is not intended to be a forecast of future events 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 or is a substitute for personalized investment advice from your individual advisor. HCM does not provide tax or legal advice. Consult your tax or legal advisor for any related questions.

All information referenced herein is from sources believed to be reliable and is provided as general market commentary and does not constitute investment advice. This material was created for informational purposes only and the opinions expressed are solely those of HCM. HCM shall not in any way be liable for claims and makes no expressed or implied representations or warranties as to the accuracy or completeness of the data and other information. The data and information are provided as of the date referenced and are subject to change without notice.

Hodges Friday Fast Five

We aim to help investors separate the news from the noise by providing our perspective. Every Friday the Hodges Private Client 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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