Hodges Capital Management’s CEO Favors Commercial Metals

The video discusses current stock market trends, highlighting the disparity between small caps and the S&P 500, suggesting a potential economic slowdown. It reviews the earnings season, noting management's cautious strategies amid tariff concerns. The speaker critiques the high valuation of defensive stocks, advocating for investments in undervalued growth companies. Recommendations include Commercial Metals, a rebar manufacturer poised to benefit from infrastructure projects. For defensive strategies, larger blue-chip stocks and certain retailers are suggested as having limited downside and significant upside potential.

What is the market's reaction to the current economic conditions as discussed in the video?

• The market is optimistic about future growth.

• Small caps and transportation shares are outperforming the S&P 500.

• There is a sense of caution, with small caps and transportation shares underperforming.

• The market is unaffected by economic conditions.

What is the speaker's view on investing in defensive stocks?

• Defensive stocks are the best investment option currently.

• Defensive stocks are overvalued and not the best choice.

• Defensive stocks are undervalued.

• Defensive stocks have high growth rates.

Which company is highlighted as a mispriced stock with growth potential?

• S&P 500

• Tapestry

• Capri Holdings

• Commercial Metals

What is the potential upside for certain retailers mentioned in the video?

• No upside potential

• 40 to 50% upside over the next 18 months

• 20% upside over the next 18 months

• 10% upside over the next 18 months

What is the speaker's recommendation for defensive investments?

• Avoid all defensive stocks

• Invest in small caps only

• Invest in technology startups

• Focus on larger blue-chip stocks