Top Buyback Stocks to Watch in 2025 News ad

When companies are considered cheap by insiders, management then applies a few simple strategies to the underlying stock to help investors regain confidence and optimism in the name. Consequently, the same decisions are helping Wall Street analysts support the stock and potentially raise their price targets.

This standard method assumes a higher dividend payout, so relative to the share price, the yield appears higher and more attractive for capital inflows. There’s a problem with this, however: it’s not the most efficient way to create shareholder value. as dividends are then taxed twice and reduce the value of the enterprise since they are essentially capital leaving the company.

Share buybacks are the best way to increase investor confidence and create more value at the same time. When management buys back shares, it sends a signal to markets and investors that the stock is considered cheap and is expected to rise soon. Knowing this, investors should realize that companies like Etsy Inc. NASDAQ:ETSY, Kroger Company New York Stock Exchange: KRand even Marathon Petroleum Co. New York Stock Exchange: MPC They are buying aggressively today.

How Inflation and Trade Trends Shape Etsy’s Stock Buyback Strategy

Now that Morgan Stanley analysts have turned bearish on the US dollar, there may be some fallout. First, a weaker currency will give foreign buyers additional purchasing power, but will also reduce the purchasing power of domestic consumers. This is where stocks like Etsy come into play, as they connect buyers and sellers around the world.

Its scale and global reach will come in handy when consumers need foreign alternatives to find the products they need in an international trading environment that may be about to change due to currency fluctuations. That’s why management is getting ahead of the curve by approving a share repurchase program of just over $1 billion.

Now that the stock is trading at 66% of its 52-week high, it makes sense for insiders to start supporting a potential new trend to return the company to its former glory. As bullish as this forecast is, insiders aren’t the only ones willing to go public with their bullish outlook for Etsy stock. Analysts at Truist Financial now have a $70 per share price target for Etsy and a Buy rating.

To reach these targets, the stock would have to rise 19% from where it is trading today while remaining well below its 52-week high. Moreover, as of November 2024, institutional investors from Pacer Advisors decided to increase their holdings in Etsy shares by 183.9%, bringing their net position to a maximum of $331 million.

Why Kroger Is Buying Stocks As Defensive Stocks Regain Attraction

Following the same domestic and global trading trend, bolstered by Morgan Stanley’s view on the dollar, investors could see how Kroger stock could become attractive in this environment. Being part of the consumer staples sector, its defensive and non-cyclical nature can be invaluable to portfolios.

This time around, momentum has already favored the stock as it trades at its 52-week high. However, that didn’t stop management from approving a $7.5 billion share repurchase program to give investors an idea of ​​where it might be heading in the coming quarters. Wall Street analysts know this too, and they aren’t afraid to push for higher prices.

This is particularly the case for Wells Fargo, which has reiterated an Outperform rating on Kroger shares as of December 2024, this time with a price target of up to $73 per share. To prove these new estimates correct, the stock would need to rise as much as 18% from where it is trading today, giving investors another double-digit upside on this list.

Like Etsy, institutions saw enough reason to start buying shares along with management.

State Street increased its holdings of Kroger shares by 16% as of November 2024, reaching a net position of $1.9 billion, or 4.6% ownership in the company, to give investors another bullish indicator to consider when buying.

New business activity is good for Marathon oil and oil reserves

After falling for 25 straight months, the manufacturing PMI could rebound sharply if analysts at Morgan Stanley are correct about their bearish dollar outlook.

With exports boosted by a weaker dollar, manufacturing and transport must speed up to meet these new orders.

And all of this requires oil, and perhaps this is the same view that Warren Buffett took when he bought up to 29% of the shares. Occidental Petroleum Co. New York Stock Exchange: OXY or when Marathon Petroleum approved a share repurchase program of up to $5 billion.

With oil prices remaining at $70 a barrel, energy stocks are becoming attractive buys.

But here’s why Marathon is one of the best buys in the industry.

Wall Street analysts now forecast first-quarter 2025 earnings per share (EPS) to reach $7.48, a nearly tenfold growth rate unseen elsewhere in the peer group.

Based on these forecasts, Wells Fargo felt confident enough to raise the stock to $186 per share, which would suggest a net gain of up to 30% from where the stock is trading today.

Before you think about Marathon Petroleum, you need to hear this.

MarketBeat tracks Wall Street’s top-rated and best-performing analysts daily and the stocks they recommend to their clients. MarketBeat identified five stocks that top analysts are quietly whispering to their clients to buy now, before the broader market takes hold… and Marathon Petroleum wasn’t on the list.

While Marathon Petroleum currently has a Moderate Buy rating among analysts, the top-rated analysts think these five stocks are Strong Buys.

View five stocks here

Did you like this article? Share this with a colleague.

The link has been copied to the clipboard.