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, Meta Platforms META, and eBay EBAY – 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.

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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.

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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.

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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.

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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).

Image Source: Zacks Investment Research