Stock buybacks, or share repurchase programs, are commonly executed by companies to boost shareholder value.
A stock buyback occurs when a company purchases outstanding shares of its stock. In its simplest form, buybacks represent companies essentially re-investing in themselves.
In 2024, several companies – HCA Healthcare (HCA - Free Report) , Meta Platforms (META - Free Report) , and eBay (EBAY - Free Report) – have unveiled repurchase programs. In addition to buybacks, all three sport a favorable Zacks Rank, reflecting positive earnings estimate revisions among analysts. Let’s take a closer look at each.
HCA Healthcare
HCA Healthcare, a Zacks Rank #1 (Strong Buy), is the largest non-governmental operator of acute care hospitals in the U.S. The company authorized an additional $3 billion share repurchase program following its latest quarterly print.
Analysts have raised their earnings expectations across the board.
The company’s outlook was boosted following better-than-expected quarterly results. HCA posted a 16.8% beat relative to the Zacks Consensus EPS estimate and reported sales 4.5% ahead of expectations, reflecting year-over-year growth rates of 27% and 12%, respectively.
HCA’s growth has remained strong as of late, with revenue seeing a recent acceleration.
Meta Platforms
Holding a spot in the elite Magnificent 7 group, Meta shares have been remarkably strong performers over the last year, up 150%.
Meta authorized an additional $50 billion in share buybacks and unveiled its first-ever dividend following its latest set of quarterly results, helping to explain the strong reaction post-earnings. The stock is currently a Zacks Rank #1 (Strong Buy), with earnings expectations jumping higher across the board.
It’s worth mentioning that the company’s advertising revenue has positively surprised in six consecutive quarters, with the most recent beat totaling 2.2% (or $827 million). Advertising represents the bulk of the company’s revenue, making up 96.5% of overall sales in Q4.
eBay
eBay unveiled an additional $2 billion share buyback following its latest set of quarterly results. Concerning headline figures, the company exceeded the Zacks Consensus EPS estimate by 4% and reported sales 2.3% ahead of expectations.
Shares popped following the release, reflecting investors’ bullish stance. Positive earnings estimate revisions soon followed, landing the stock into a favorable Zacks Rank #2 (Buy).
The company’s shareholder-friendly nature shouldn’t be overlooked, reflected by its 15.3% five-year annualized dividend growth rate. Shares currently yield 2.1% annually paired with a sustainable payout ratio sitting at 32% of the company’s earnings.
Bottom Line
A common way that companies amplify shareholder value is through implementing share buybacks. They can provide a nice confidence boost for investors, indicating that the company is utilizing excess cash and can help put in a floor for shares.
And recently, all companies above – HCA Healthcare (HCA - Free Report) , Meta Platforms (META - Free Report) , and eBay (EBAY - Free Report) – unveiled additional or fresh buyback programs.
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Stock buybacks, or share repurchase programs, are commonly executed by companies to boost shareholder value.
A stock buyback occurs when a company purchases outstanding shares of its stock. In its simplest form, buybacks represent companies essentially re-investing in themselves.
In 2024, several companies – HCA Healthcare (HCA - Free Report) , Meta Platforms (META - Free Report) , and eBay (EBAY - Free Report) – have unveiled repurchase programs. In addition to buybacks, all three sport a favorable Zacks Rank, reflecting positive earnings estimate revisions among analysts. Let’s take a closer look at each.
HCA Healthcare
HCA Healthcare, a Zacks Rank #1 (Strong Buy), is the largest non-governmental operator of acute care hospitals in the U.S. The company authorized an additional $3 billion share repurchase program following its latest quarterly print.
Analysts have raised their earnings expectations across the board.
The company’s outlook was boosted following better-than-expected quarterly results. HCA posted a 16.8% beat relative to the Zacks Consensus EPS estimate and reported sales 4.5% ahead of expectations, reflecting year-over-year growth rates of 27% and 12%, respectively.
HCA’s growth has remained strong as of late, with revenue seeing a recent acceleration.
Meta Platforms
Holding a spot in the elite Magnificent 7 group, Meta shares have been remarkably strong performers over the last year, up 150%.
Meta authorized an additional $50 billion in share buybacks and unveiled its first-ever dividend following its latest set of quarterly results, helping to explain the strong reaction post-earnings. The stock is currently a Zacks Rank #1 (Strong Buy), with earnings expectations jumping higher across the board.
It’s worth mentioning that the company’s advertising revenue has positively surprised in six consecutive quarters, with the most recent beat totaling 2.2% (or $827 million). Advertising represents the bulk of the company’s revenue, making up 96.5% of overall sales in Q4.
eBay
eBay unveiled an additional $2 billion share buyback following its latest set of quarterly results. Concerning headline figures, the company exceeded the Zacks Consensus EPS estimate by 4% and reported sales 2.3% ahead of expectations.
Shares popped following the release, reflecting investors’ bullish stance. Positive earnings estimate revisions soon followed, landing the stock into a favorable Zacks Rank #2 (Buy).
The company’s shareholder-friendly nature shouldn’t be overlooked, reflected by its 15.3% five-year annualized dividend growth rate. Shares currently yield 2.1% annually paired with a sustainable payout ratio sitting at 32% of the company’s earnings.
Bottom Line
A common way that companies amplify shareholder value is through implementing share buybacks. They can provide a nice confidence boost for investors, indicating that the company is utilizing excess cash and can help put in a floor for shares.
And recently, all companies above – HCA Healthcare (HCA - Free Report) , Meta Platforms (META - Free Report) , and eBay (EBAY - Free Report) – unveiled additional or fresh buyback programs.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
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