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To compile this list we looked for stocks that announced buyback programs over the last six months. We then compared them against their industry and kept those that are undervalued with regards to the following metrics:

  • Trailing 12 month Price to Earnings Ratio vs. industry average
  • Price to Earnings to Growth Ratio vs. industry average
  • Price to Cash Flow Ratio vs. industry average

Considering their use of cash to buyback stock and their relative undervaluation, which of these companies are you most bullish or bearish about?

1. Seagate Technology PLC (STX): Data Storage Devices Industry. Market cap of $8.22B. On Nov-29-10, the company announced a buyback program of $2B - it represents about 24.33% of the current market cap. TTM P/E at 11.42 vs. industry average at 18.85. PEG at 1.06 vs. industry average at 1.17. Price/cash flow at 5.47 vs. industry average at 13.53. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.97%, current ratio at 1.77, and quick ratio at 1.5.

2. Brinker International Inc. (EAT): Restaurants Industry. Market cap of $2.21B. On Nov-10-10, the company announced a buyback program of $325M - it represents about 14.71% of the current market cap. TTM P/E at 17.81 vs. industry average at 29.75. PEG at 1.34 vs. industry average at 1.76. Price/cash flow at 8.97 vs. industry average at 15.94. The stock is a short squeeze candidate, with a short float at 11.46% (equivalent to 5.38 days of average volume). The stock has gained 23.75% over the last year.

3. Aeropostale, Inc. (ARO): Apparel Stores Industry. Market cap of $2.12B. On Nov-15-10, the company announced a buyback program of $300M - it represents about 14.16% of the current market cap. TTM P/E at 10.28 vs. industry average at 18. PEG at 0.83 vs. industry average at 1.22. Price/cash flow at 8.08 vs. industry average at 12.03. Might be undervalued at current levels, with a PEG ratio at 0.88, and P/FCF ratio at 13.. The stock has lost 18.76% over the last year.

4. Healthways Inc. (HWAY): Specialized Health Services Industry. Market cap of $480.28M. On Oct-21-10, the company announced a buyback program of $60M - it represents about 12.49% of the current market cap. TTM P/E at 10.39 vs. industry average at 17.15. PEG at 0.94 vs. industry average at 1.17. Price/cash flow at 4.81 vs. industry average at 11.24. The stock is a short squeeze candidate, with a short float at 5.06% (equivalent to 7.38 days of average volume). After a solid performance over the last year, HWAY has pulled back during recent sessions. The stock is -6.13% below its SMA20 and -4.06% below its SMA50, but remains 11.02% above its SMA200. The stock has performed poorly over the last month, losing 10.06%.

5. Lockheed Martin Corporation (LMT): Aerospace/Defense Products & Services Industry. Market cap of $27.19B. On Oct-25-10, the company announced a buyback program of $3B - it represents about 11.04% of the current market cap. TTM P/E at 10.8 vs. industry average at 17.56. PEG at 1.21 vs. industry average at 1.75. Price/cash flow at 8.03 vs. industry average at 12.16. The stock has lost 7.14% over the last year.

6. Cisco Systems, Inc. (CSCO): Networking & Communication Devices Industry. Market cap of $93.64B. On Nov-18-10, the company announced a buyback program of $10B - it represents about 10.68% of the current market cap. TTM P/E at 12.93 vs. industry average at 26.58. PEG at 1.25 vs. industry average at 1.46. Price/cash flow at 9.61 vs. industry average at 21.95. The stock has lost 38.11% over the last year.

7. Strayer Education Inc. (STRA): Education & Training Services Industry. Market cap of $1.51B. On Oct-28-10, the company announced a buyback program of $150M - it represents about 9.93% of the current market cap. TTM P/E at 12.37 vs. industry average at 22.61. PEG at 1.34 vs. industry average at 1.66. Price/cash flow at 11.05 vs. industry average at 16.93. The stock is a short squeeze candidate, with a short float at 21.14% (equivalent to 10.77 days of average volume). The stock is currently stuck in a downtrend, trading -8.55% below its SMA20, -9.96% below its SMA50, and -20.57% below its SMA200. The stock has lost 51.52% over the last year.

8. LHC Group, Inc. (LHCG): Home Health Care Industry. Market cap of $534.71M. On Nov-01-10, the company announced a buyback program of $50M - it represents about 9.35% of the current market cap. TTM P/E at 10.69 vs. industry average at 17.15. PEG at 0.68 vs. industry average at 1.21. Price/cash flow at 10.65 vs. industry average at 11.24. The stock is a short squeeze candidate, with a short float at 11.62% (equivalent to 10.12 days of average volume). The stock has lost 21.56% over the last year.

9. Alterra Capital Holdings Limited (ALTE): Property & Casualty Insurance Industry. Market cap of $2.28B. On Nov-02-10, the company announced a buyback program of $200M - it represents about 8.77% of the current market cap. TTM P/E at 6.88 vs. industry average at 10.85. PEG at 0.71 vs. industry average at 0.93. Price/cash flow at 7.22 vs. industry average at 7.44. The stock has lost 5.94% over the last year.

10. Intel Corporation (INTC): Semiconductor Industry. Market cap of $115.57B. On Jan-24-11, the company announced a buyback program of $10B - it represents about 8.65% of the current market cap. TTM P/E at 9.84 vs. industry average at 18.99. PEG at 0.84 vs. industry average at 1.22. Price/cash flow at 6.95 vs. industry average at 12.53. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.38%, current ratio at 1.97, and quick ratio at 1.62. The stock has had a couple of great days, gaining 9.6% over the last week.

11. Consolidated Graphics, Inc. (CGX): Business Services Industry. Market cap of $607.60M. On Nov-03-10, the company announced a buyback program of $50M - it represents about 8.23% of the current market cap. TTM P/E at 18.8 vs. industry average at 26.04. PEG at 1.25 vs. industry average at 1.53. Price/cash flow at 6.06 vs. industry average at 13.63. The stock has gained 25.87% over the last year.

12. Baxter International Inc. (BAX): Medical Instruments & Supplies Industry. Market cap of $32.47B. On Dec-13-10, the company announced a buyback program of $2.5B - it represents about 7.7% of the current market cap. TTM P/E at 16.21 vs. industry average at 21.33. PEG at 1.64 vs. industry average at 1.73. Price/cash flow at 12.06 vs. industry average at 12.6. Relatively low correlation to the market (beta = 0.52), which may be appealing to risk averse investors. The stock has had a couple of great days, gaining 5.24% over the last week.

13. NCI, Inc. (NCIT): Information Technology Services Industry. Market cap of $331.36M. On Nov-02-10, the company announced a buyback program of $25M - it represents about 7.54% of the current market cap. TTM P/E at 14.09 vs. industry average at 19.64. PEG at 0.94 vs. industry average at 1.43. Price/cash flow at 11.43 vs. industry average at 16.03. The stock has lost 17.52% over the last year.

14. Cirrus Logic Inc. (CRUS): Semiconductor Industry. Market cap of $1.10B. On Nov-04-10, the company announced a buyback program of $80M - it represents about 7.26% of the current market cap. TTM P/E at 12.33 vs. industry average at 18.98. PEG at 0.62 vs. industry average at 1.22. Price/cash flow at 10.86 vs. industry average at 12.53. The stock is currently stuck in a downtrend, trading -14.7% below its SMA20, -23.93% below its SMA50, and -10.65% below its SMA200. It's been a rough couple of days for the stock, losing 10.06% over the last week.

15. Education Management Corporation (EDMC): Education & Training Services Industry. Market cap of $1.47B. On Dec-08-10, the company announced a buyback program of $100M - it represents about 6.79% of the current market cap. TTM P/E at 10.92 vs. industry average at 22.61. PEG at 0.91 vs. industry average at 1.66. Price/cash flow at 7.03 vs. industry average at 16.93. Relatively low correlation to the market (beta = 0.61), which may be appealing to risk averse investors. The stock is a short squeeze candidate, with a short float at 6.72% (equivalent to 22.89 days of average volume). The stock has lost 15.3% over the last year.

16. Kadant Inc. (KAI): Paper & Paper Products Industry. Market cap of $330.13M. On Oct-27-10, the company announced a buyback program of $20M - it represents about 6.06% of the current market cap. TTM P/E at 18.14 vs. industry average at 22.12. PEG at 0.73 vs. industry average at 1.61. Price/cash flow at 12.9 vs. industry average at 12.91. Might be undervalued at current levels, with a PEG ratio at 0.86, and P/FCF ratio at 13.19. The stock has gained 46.11% over the last year.

17. Teradyne Inc. (TER): Semiconductor Equipment & Materials Industry. Market cap of $3.30B. On Nov-22-10, the company announced a buyback program of $200M - it represents about 6.06% of the current market cap. TTM P/E at 10.35 vs. industry average at 18.98. PEG at 0.67 vs. industry average at 1.22. Price/cash flow at 6.95 vs. industry average at 12.53. The stock has had a couple of great days, gaining 5.51% over the last week.

18. United Stationers Inc. (USTR): Wholesale Industry. Market cap of $1.69B. On Oct-25-10, the company announced a buyback program of $100M - it represents about 5.92% of the current market cap. TTM P/E at 15.61 vs. industry average at 26.04. PEG at 1.02 vs. industry average at 1.53. Price/cash flow at 11.43 vs. industry average at 13.63. The stock is a short squeeze candidate, with a short float at 5.05% (equivalent to 9.13 days of average volume). The stock has gained 16.67% over the last year.

19. Aetna Inc. (AET): Health Care Plans Industry. Market cap of $14.87B. On Dec-03-10, the company announced a buyback program of $750M - it represents about 5.04% of the current market cap. TTM P/E at 9.43 vs. industry average at 17.15. PEG at 1.11 vs. industry average at 1.21. Price/cash flow at 7.18 vs. industry average at 11.24. Might be undervalued at current levels, with a PEG ratio at 0.84, and P/FCF ratio at 13.24. The stock has had a good month, gaining 10.5%.

20. Republic Services, Inc. (RSG): Waste Management Industry. Market cap of $11.28B. On Nov-04-10, the company announced a buyback program of $400M - it represents about 3.55% of the current market cap. TTM P/E at 22.47 vs. industry average at 26.15. PEG at 1.52 vs. industry average at 1.53. Price/cash flow at 7.99 vs. industry average at 13.5. The stock has gained 0.58% over the last year.

21. Yum! Brands, Inc. (YUM): Restaurants Industry. Market cap of $25.05B. On Jan-27-11, the company announced a buyback program of $750M - it represents about 2.99% of the current market cap. TTM P/E at 22.08 vs. industry average at 29.75. PEG at 1.72 vs. industry average at 1.76. Price/cash flow at 14.12 vs. industry average at 15.94. The stock has had a couple of great days, gaining 5.86% over the last week.

22. ACE Limited (ACE): Property & Casualty Insurance Industry. Market cap of $22.02B. On Nov-18-10, the company announced a buyback program of $600M - it represents about 2.72% of the current market cap. TTM P/E at 7.19 vs. industry average at 10.85. PEG at 0.8 vs. industry average at 0.93. Price/cash flow at 7.1 vs. industry average at 7.44. The stock has gained 25.74% over the last year.

23. Teva Pharmaceutical Industries Limited (TEVA): Drug Manufacturer. Market cap of $42.30B. On Dec-01-10, the company announced a buyback program of $1B - it represents about 2.36% of the current market cap. TTM P/E at 12.26 vs. industry average at 25.72. PEG at 1.24 vs. industry average at 1.36. Price/cash flow at 9.36 vs. industry average at 15.15. The stock is currently stuck in a downtrend, trading -8.05% below its SMA20, -8.35% below its SMA50, and -11.07% below its SMA200. It's been a rough couple of days for the stock, losing 9.8% over the last week.

24. DeVry, Inc. (DV): Education & Training Services Industry. Market cap of $3.41B. On Nov-10-10, the company announced a buyback program of $50M - it represents about 1.47% of the current market cap. TTM P/E at 11.23 vs. industry average at 22.61. PEG at 0.92 vs. industry average at 1.66. Price/cash flow at 9.25 vs. industry average at 16.93. It's been a rough couple of days for the stock, losing 6.56% over the last week.

*Buyback data sourced from RTT news, valuation ratios sourced from Fidelity, other data sourced from Finviz.

Source: Top 24 Most Undervalued Stocks With Buyback Programs