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The TJX Companies (NYSE:TJX), Texas Instruments Incorporated (NASDAQ:TXN), and Celgene Corporation (NASDAQ:CELG) had announced a new or accelerated plan for share repurchase recently. In this article, these 3 stocks will be analyzed fundamentally and technically. Investing strategies will also be reviewed.

The TJX Companies, Inc.

TJX was up 0.49% and closed at $44.97 on February 28, 2013. TJX had been trading in the range of $36.50-$46.67 in the past 52 weeks. TJX has a market cap of $32.79B with a low beta of 0.62.

On February 27, 2013, TJX reported Q4 EPS of $0.82, beating analysts' estimate of $0.81. Revenue of $7.7B was higher than the consensus estimate of $7.65B. TJX intends to increase the regular quarterly dividend on its common stock to be declared in April 2013 and payable in June 2013 to $0.145 per share, subject to the approval of the company's Board of Directors. TJX announced its plan to repurchase approximately $1.3B-$1.4B of TJX stock during the fiscal year ending February 1, 2014. Analysts have a mean target price of $49.26 and a median target price of $50.00 for TJX.

There are a few positive factors for TJX:

  • Higher revenue growth (3 year average) of 6.9 (vs. the industry average of 4.1)
  • Higher operating margin of 11.5% and net margin of 7.2% (vs. the industry averages of 9.3% and 5.5%)
  • Stronger ROE of 53.4 (vs. the average of 21.5)
  • Lower debt/equity of 0.2 (vs. the average of 0.5)
  • TJX generates an operating cash flow of $3.17B with a levered free cash flow of $2.20B
  • TJX currently offers an annual dividend yield of 1.02%

Technically, the MACD (12, 26, 9) indicator is showing a bearish trend, but the MACD difference continues to converge. The momentum indicator, RSI (14), is picking up and indicating a slightly bullish lean at 54.92. TJX is currently trading above its 50-day MA of $44.13 and 200-day MA of $43.51. The next resistance is $46.31, the R1 pivot point, and $47.55, the R2 pivot point, as seen from the chart below.

(click to enlarge)

Source: StockCharts.com

How to Invest

For bullish investors, a credit put option spread of July 20, 2013 $40/$42.5 put can be reviewed. Investors can also review the following ETFs to gain exposure to TJX:

  • Market Vectors Retail ETF (NYSEARCA:RTH), 4.51% weighting
  • Value Line Equity Allocation Index Fund (NYSEARCA:FVI), 1.38% weighting

Texas Instruments Incorporated

TXN was up 0.40% and closed at $34.43 on February 28, 2013. TXN had been trading in the range of $26.06-$34.66 in the past 52 weeks. TXN has a market cap of $38.15B with a beta of 1.11.

On February 21, 2013, TXN had authorized the repurchase of an additional $5B of its common stock bringing the total outstanding authorization to $8.4B. Analysts have a mean target price of $32.83 and a median target price of $33.00 for TXN. Analysts are estimating an EPS of $0.31 with revenue of $2.80B for the current quarter ending in March 2013. For 2013, analysts are projecting an EPS of $1.73 with revenue of $12.00B, which is 6.40% less than 2012.

There are a few positive factors for TXN:

  • Lower P/E of 22.7 (vs. the industry average of 23.6)
  • TXN generates an operating cash flow of $3.41B with a levered free cash flow of $3.14B
  • TXN currently offers an annual dividend yield of 3.25%

Technically, the MACD (12, 26, 9) is showing a slightly bearish trend, but the MACD difference continues to converge and is approaching the middle line. RSI (14) is showing a bullish lean at 60.24. TXN is currently trading above its 50-day MA of $32.56 and 200-day MA of $29.28, as seen from the chart below.

(click to enlarge)

Source: StockCharts.com

How to Invest

For bullish investors, a credit put option spread of July 20, 2013 $30/$32 put can be reviewed. Investors can also review the following ETFs to gain exposure to TXN:

  • PHLX SOX Semiconductor Sector Index Fund (NASDAQ:SOXX), 8.60% weighting
  • Market Vectors Semiconductor ETF (NYSEARCA:SMH), 6.60% weighting
  • Nasdaq Technology Dividend Index Fund (NASDAQ:TDIV), 3.80% weighting

Celgene Corporation

CELG was up 2.21% and closed at $103.27 on February 28, 2013. CELG had been trading in the range of $58.53-$105.14 in the past 52 weeks. CELG has a market cap of $43.68B with a low beta of 0.63.

On February 20, 2013, CELG announced that it had entered into an accelerated share repurchase agreement with an investment bank to repurchase an aggregate of $600M of the company's common stock. The agreement is part of the existing Board authorized share repurchase program. Year-to-date, CELG had repurchased approximately $385M of its common stock and had approximately $1,450M remaining in the existing program. CELG had repurchased approximately $5,050M of its common stock over the last four years.

CELG's positive factors and analysts' target price can be reviewed in our last article of "3 Solid, Low Beta Biotechnology Stocks To Buy On Dip".

Technically, the MACD (12, 26, 9) indicator is showing a bearish trend, but the MACD difference continues to converge. RSI (14) is picking up and indicating a bullish lean at 64.79. CELG is currently trading above its 50-day MA of $93.60 and 200-day MA of $77.30. The next resistance is $106.14, the R1 pivot point, followed by $113.31, the R2 pivot point, as seen from the chart below.

(click to enlarge)

Source: StockCharts.com

How to Invest

For bullish investors, a credit put spread of July 20, 2013 $80/$85 put can be reviewed, which will allow investors to gain some upside credit premium or to acquire CELG stock at a price below $85. Investors can also review the following ETFs to gain exposure to CELG:

  • Market Vectors Biotech ETF (NYSEARCA:BBH), 6.97% weighting
  • Nasdaq Biotechnology (NASDAQ:IBB), 6.71% weighting
  • NYSE Arca Biotechnology Index Fund (NYSEARCA:FBT), 4.95% weighting

Note: All prices are quoted from the closing of February 28, 2013. Investors and traders are recommended to do their own due diligence and research before making any trading/investing decisions.

Source: 3 Stocks With Strong Buybacks And How To Invest: TJX, Texas Instruments, And Celgene