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

#1 AUTO PRODUCTION: The global automotive industry is expected to experience a $210 billion revenue impact in 2021 from the semiconductor shortage. It is now forecasted that roughly 7.7 million units of production will be lost this year, according to consulting firm AlixPartners. 

#2 EARNINGS HEADWINDS: Factset data has shown a flattening of upward revisions to earnings estimates for the S&P 500 since May. With the third-quarter earnings season just a few weeks away, supply chain disruptions and labor shortages have become more apparent across several industries, providing a potential headwind to margins in the September quarter.  

#3 CEO QUOTE: Jeffrey T. Mezger, Chairman & CEO of KB Home, “The credit profile of our buyers is above our historical level, with an average FICO score of 731 and down payment of 14%, translating to almost $60,000, which is noteworthy for a first-time buyer.”  

#4 PANIC SELLING: A recent study on behavioral finance conducted by researchers at the Massachusetts Institute of Technology (MIT) identified, after analyzing more than 600,000 brokerage accounts, that married men over the age of 45 are the most likely to panic sell their portfolios during a market selloff.

#5 ELECTRIC VEHICLES: Although electric vehicles (EVs) represent only 3% of the total number of global new autos sold today, Wedbush estimates EVs could grow to 10% by 2025 and 20% by 2030.  

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