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Share repurchase reduces the number of shares outstanding for the corporation. In this article, three large-cap stocks, which were in the list of top 10 companies with the largest dollar-value share repurchases in the most recent quarter as of December, 2012, will be presented.

Name (Ticker)

Sector

Quarter's Buybacks ($M)

% Change in Shares (Qtr)

Market Cap

Beta

Dividend Yield

Oracle Corp. (NYSE:ORCL)

IT

$3,074

-1.5%

164.80B

1.10

0.69%

Procter & Gamble Co. (NYSE:PG)

Consumer Staples

$2,891

-0.5%

209.08B

0.46

2.94%

Philip Morris International (NYSE:PM)

Consumer Staples

$1,505

-1.0%

150.33B

0.86

3.78%

Source: FactSet Research Systems and Google Finance

Date: December 20, 2012

Oracle Corp.

Oracle Corporation (ORCL) is a provider of enterprise software and computer hardware products and services, including databases, middleware and applications. ORCL closed at $34.81 and was down 0.26% on February 15, 2013. ORCL had been trading in the range of $25.33-$36.31 in the past 52 weeks.

On February 6, 2013, Oracle had released Oracle's PeopleSoft PeopleTools 8.53, which enables a new level of usability and productivity within the PeopleSoft applications by delivering a process rather than task-centric interaction model. Oracle also announced Oracle Snap Management Utility, which "automates and accelerates the creation and management of snapshot-based copies and clones of Oracle databases by reducing the steps required from nine to one for snapshots and 12 to one for clones."

Fundamentally, ORCL has an enterprise value of $150.86B. ORCL has a total cash of $33.70B with a total debt of $19.76B. ORCL has a book value of $9.05 per share. ORCL generates an operating cash flow of $13.53B with a levered free cash flow of $11.55B. ORCL has higher revenue growth (three-year average) of 16.9, as compared to the average of 8.2. ORCL has higher operating margin of 38.3%, ttm, and net margin of 28.4%, ttm, comparing with the industry averages of 36.6% and 28.3%, ttm, respectively. ORCL's P/E of 16.4 is lower than the industry average of 25.9 and ORCL's five-year average of 18.2. ORCL's forward P/E of 11.9 is lower than S&P 500's average of 14.0.

The Procter & Gamble Company

The Procter & Gamble Company (PG) is the world's largest consumer product manufacturer, operating with a lineup of leading brands, such as Tide laundry detergent, Charmin toilet paper, Pantene shampoo, Cover girl cosmetics, and Iams pet food. PG closed at $76.54 and declined 0.31% on February 15, 2013. PG had been trading in the range of $59.07-$76.97 in the past 52 weeks.

On February 14, 2013, PG trimmed its fiscal second-quarter and full-year profit target, citing Venezuela's currency devaluation that may cost the consumer-products giant up to $275 million, according to the report from FoxBusiness. Hurt by the Venezuelan move, PG now expects to post non-GAAP EPS of $3.94-$4.04, which is below the Street's view of $4.07. The company previously forecast non-GAAP EPS of $3.97-$4.07. On the same day, Canaccord Genuity initiated coverage on PG with a Buy rating and a price target of $87.00.

Fundamentally, PG has an enterprise value of $236.91B. PG has a total cash of $6.97B with a total debt of $33.43B. PG has a book value of $23.99. PG generates an operating cash flow of $14.41B with a levered free cash flow of $11.04B. PG has a higher revenue growth (three-year average) of 3.0, comparing with the industry average of 1.4. PG has higher operating margin of 17.8%, ttm, and net margin of 15.5%, ttm, as compared with the averages of 14.6% and 9.9%, ttm, respectively. PG's ROE of 20.1 is slightly lower than the industry average of 20.5. PG's P/E of 19.6 is higher than the industry average of 19.0 and PG's five-year average of 17.3. PG's forward P/E of 17.0 is higher than S&P 500's average of 14.0.

Philip Morris International

Philip Morris International Inc. is a holding company, engaged in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States of America. PM's products are sold in approximately 180 countries. PM decreased 0.02% and closed at $89.99 on February 15, 2013. PM had been trading in the range of $81.10-$94.13 in the past 52 weeks.

On February 7, 2013, PM reported adjusted Q3, 2013 earnings per share of $1.24, surpassing the comparable prior-year quarter earnings by 12.70, according to Zacks' report. Excluding currency impact of 4 cents, adjusted earnings exceeded the prior-year quarter earnings by 16.4% and beat Zacks Consensus Estimate of $1.22. Earnings increased on the back of higher revenues and favorable impact of lower shares outstanding. As reported, "Cigarette shipment volume excluding acquisitions went up 2.9% year over year to 233.1 million units on the back of increase in shipment volume in the EMEA region." After completing a three-year share buyback program worth $12 billion in July, 2012, the company announced a new share buyback program of $18.0 billion in August 2012. PM also increased its quarterly dividend by 10.4% during the quarter to 85 cents from 77 cents. On February 13, 2013, Nomura Securities upgraded PM from Reduce to Neutral with a price target of $94.80 (from $92.80).

Fundamentally, PM has an enterprise value of $168.66B. PM has a total cash of $2.98B with a total debt of $22.84B. PM generates an operating cash flow of $9.42B with a levered free cash flow of $7.60B. PM has a higher revenue growth (three-year average) of 6.3, comparing with the industry average of -1.9. PM has lower operating margin of 17.7%, ttm, and net margin of 11.2%, ttm, as compared with the averages of 23.4% and 21.3%, ttm, respectively. PM's P/E of 17.9 is slightly higher than the industry average of 17.8 and PM's five-year average of 15.1. PM's forward P/E of 14.2 is higher than S&P 500's average of 14.0.

In short, while all three companies are great long-term holdings that benefited from strong share repurchases, Oracle currently presents the most attractive P/E at 16.4 and forward P/E at 11.9, which are below the industry averages.

Note: This list is only provided as the starting point for interested investors to research further. Investors and traders are recommended to do their own due diligence and research before making any trading/investing decisions.

Source: 3 Large-Cap Stocks Benefited From Large Share Repurchases