Big-name companies often make headlines for their stock buybacks, but some lesser-known businesses are quietly doing the same.
Investors generally like to see buybacks. When done responsibly, they reduce the number of shares outstanding for a stock, which increases earnings per share and signals that management believes the stock is undervalued.
Here are 10 underfollowed stocks aggressively buying back shares and sending a clear message of long-term confidence in their future.
Regal Rexnord (RRX)
- Market Cap: $7 billion
- Industry: Electrical Equipment
- Analyst Upside: 46%
- P/E Ratio: 11
Company Overview: Regal Rexnord is a global manufacturer specializing in electric motors, power transmission components, and automation solutions, serving diverse industries worldwide.
Business Strategy: The company focuses on innovation and sustainability, aiming to provide energy-efficient solutions and expand its presence in high-growth markets through strategic acquisitions.
Recent Developments:
- Earnings & Profitability: The business achieved significant revenue growth, with adjusted gross margins approaching 36%, driven by strategic portfolio transformations.
- Business Growth Trends: Regal successfully completed the acquisition of Altra Industrial Motion, which enhanced its capabilities in automation and power transmission.
- Shareholder Returns: Regal has maintained a strong dividend history, with dividends growing at a 3.5% CAGR over the past 5 years.
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Mueller Industries (MLI)
- Market Cap: $8 billion
- Industry: Machinery
- Analyst Upside: 44%
- P/E Ratio: 12.2
Company Overview: Mueller Industries is a leading manufacturer of copper, brass, aluminum, and plastic products, serving plumbing, HVAC, and refrigeration markets globally.
Business Strategy: The company leverages its extensive product portfolio and global manufacturing footprint to meet diverse customer needs and capitalize on infrastructure development trends.
Recent Developments:
- Earnings & Profitability: Mueller demonstrated strong financial performance, with cash flow generation that could support its operational investments.
- Business Growth Trends: Mueller expanded its market presence through strategic acquisitions and investments in manufacturing capabilities.
- Shareholder Returns: The company consistently returned value to shareholders through dividends and share repurchase programs, which helped to lead a shareholder-friendly approach.
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Dillard’s (DDS)
- Market Cap: $5 billion
- Industry: Broadline Retail
- Analyst Upside: -13%
- P/E Ratio: 12
Company Overview: Dillard’s is a prominent department store chain operating across the Southern and Western United States, offering a wide range of products including apparel, cosmetics, and home goods.
Business Strategy: The company generates revenue through its retail operations, focusing on a curated product mix and a strong in-store experience to drive customer loyalty and sales.
Recent Developments:
- Earnings & Profitability: The company reported a decline in net income and earnings per share for the fourth quarter and fiscal year, reflecting challenges in the retail environment. This hasn’t been Dillard’s finest hour!
- Business Growth Trends: Despite sales declines, Dillard’s continues to focus on expense control and operational efficiency to maintain profitability.
- Shareholder Returns: The company has maintained a consistent dividend payout, demonstrating a commitment to returning value to shareholders.
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TIKR Takeaway
Dillard’s, Regal Rexnord, and Mueller Industries are quietly making aggressive moves with share buybacks, signaling strong balance sheets and confidence in their long-term value.
These lesser-known names may not grab headlines, but their capital return strategies could reward patient investors looking for under-the-radar opportunities.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
