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.
And as of late, several companies – NVR (NVR - Free Report) , Meta Platforms (META - Free Report) , Altria Group (MO - Free Report) , United Rentals (URI - Free Report) , and Paychex (PAYX - Free Report) – have unveiled new repurchase programs. Let’s take a closer look at each.
Meta Platforms
Up a remarkable 180% over the last year, better-than-expected quarterly results have driven the company’s stellar share performance. Meta authorized an additional $50 billion in share buybacks and unveiled its first-ever dividend following its latest print.
The stock is a current Zacks Rank #1 (Strong Buy), with earnings expectations higher across the board.
The company’s growth profile remains solid, with expectations for its current year (FY24) suggesting 34% earnings growth on 18% higher sales. Improved profitability has been a significant tailwind for the tech giant, with Q4 costs and expenses falling 8% year-over-year.
NVR
NVR shares have been strong performers as well, adding roughly 45% in value and outperforming relative to the S&P 500 over the last year. The company recently unveiled a $750 million buyback.
The stock is a current Zacks Rank #1 (Strong Buy), with analysts positively revising their expectations across the board.
Altria Group
Altria has a leading portfolio of tobacco products for U.S. tobacco consumers. Following its latest quarterly release, the company announced a new $1 billion buyback program.
Income-focused investors could find MO shares attractive, currently yielding a sizable 9.6% annually. Dividend growth is also apparent, with the payout growing by 4% annually over the last five years.
United Rentals
URI shares have been considerably hot over the last year, adding more than 45% in value and widely outperforming relative to the S&P 500. The company unveiled a $1.5 billion share repurchase program near the beginning of February.
The company’s growth is forecasted to remain steady, with consensus expectations for its current fiscal year (FY24) suggesting 5.5% earnings growth on 4.6% higher sales. Peeking ahead to FY25, consensus estimates allude to an additional 7% boost in earnings paired with a 3% sales boost.
Paychex
Paychex is a recognized leader in the payroll, human resource, and benefits outsourcing industry. PAYX announced a $400 million buyback near the end of January. Shares have been quite volatile over the last year, up 14% and underperforming relative to the S&P 500’s nearly 30% gain.
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 – NVR (NVR - Free Report) , Meta Platforms (META - Free Report) , Altria Group (MO - Free Report) , United Rentals (URI - Free Report) , and Paychex (PAYX - 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.
And as of late, several companies – NVR (NVR - Free Report) , Meta Platforms (META - Free Report) , Altria Group (MO - Free Report) , United Rentals (URI - Free Report) , and Paychex (PAYX - Free Report) – have unveiled new repurchase programs. Let’s take a closer look at each.
Meta Platforms
Up a remarkable 180% over the last year, better-than-expected quarterly results have driven the company’s stellar share performance. Meta authorized an additional $50 billion in share buybacks and unveiled its first-ever dividend following its latest print.
The stock is a current Zacks Rank #1 (Strong Buy), with earnings expectations higher across the board.
The company’s growth profile remains solid, with expectations for its current year (FY24) suggesting 34% earnings growth on 18% higher sales. Improved profitability has been a significant tailwind for the tech giant, with Q4 costs and expenses falling 8% year-over-year.
NVR
NVR shares have been strong performers as well, adding roughly 45% in value and outperforming relative to the S&P 500 over the last year. The company recently unveiled a $750 million buyback.
The stock is a current Zacks Rank #1 (Strong Buy), with analysts positively revising their expectations across the board.
Altria Group
Altria has a leading portfolio of tobacco products for U.S. tobacco consumers. Following its latest quarterly release, the company announced a new $1 billion buyback program.
Income-focused investors could find MO shares attractive, currently yielding a sizable 9.6% annually. Dividend growth is also apparent, with the payout growing by 4% annually over the last five years.
United Rentals
URI shares have been considerably hot over the last year, adding more than 45% in value and widely outperforming relative to the S&P 500. The company unveiled a $1.5 billion share repurchase program near the beginning of February.
The company’s growth is forecasted to remain steady, with consensus expectations for its current fiscal year (FY24) suggesting 5.5% earnings growth on 4.6% higher sales. Peeking ahead to FY25, consensus estimates allude to an additional 7% boost in earnings paired with a 3% sales boost.
Paychex
Paychex is a recognized leader in the payroll, human resource, and benefits outsourcing industry. PAYX announced a $400 million buyback near the end of January. Shares have been quite volatile over the last year, up 14% and underperforming relative to the S&P 500’s nearly 30% gain.
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 – NVR (NVR - Free Report) , Meta Platforms (META - Free Report) , Altria Group (MO - Free Report) , United Rentals (URI - Free Report) , and Paychex (PAYX - Free Report) – unveiled additional or fresh buyback programs.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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