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BBY ChartBest Buy (BBY) is currently yielding 2.66%. We first looked at BBY in detail back in April, when the stock was trading at $28.71, and concluded the stock was attractive. The current price is $24.10, making the stock more attractive.

Management seems to agree, and is aggressively buying back shares. The company repurchased approximately $1.2 billion or 33 million shares, which is over 8% of the previously outstanding shares of the company during fiscal 2011.

During the first quarter (FY2012), BBY bought back $0.43 billion worth of stock, representing 4% of the outstanding shares. The company has authorized an additional $5 billion. This amount would represent over 50% of the outstanding shares at today's prices.

Cash flow in the quarter was very strong. Free cash flow for Q1 was $1.1 billion, up significantly from last year. Management anticipates free cash flow of $2 billion to $2.5 billion for fiscal 2012. (2011 free cash flow was $446 million).

The dividend has been increased 14.3 percent over the last two years. Our fair value calculation is $38. Credit Suisse has a 12 month target price of $42, S&P's is $34 and the consensus median price on Yahoo Finance is $35. A detailed summary of BBY financial data can be viewed here.

INTC chart

Intel (NASDAQ:INTC) is currently yielding 4.28%. We first looked at INTC in detail back in April, when the stock was trading at $19.37, and concluded the stock was attractive. The current price is $19.64.

INTC started to aggressively buy back shares in the fourth quarter of last year, as shown below:

INTC_buybacks

The cumulative totals date back to the third quarter of 1990.

Intel CFO Stacy Smith articulated the cash priorities as follows:

...our cash priorities as first investing in our business. Second, the dividends. Third, using the buyback to return cash to shareholders and bring down the cash levels.

And this statement on the recent buybacks:

Diluted shares outstanding decreased by 165M shares to 5.4B shares driven by first quarter and second quarter share repurchases. Diluted shares outstanding is calculated based on a weighted average of shares outstanding during the quarter. As a result, a portion of the $4.0B of first quarter share repurchases and a portion of the $2.0B of the second quarter share repurchases are reflected in our second quarter weighting for diluted shares outstanding. The full impact of our second quarter repurchases will be included in our third quarter diluted shares outstanding.

The dividend was increased 15% in the first quarter then another 16% in the second quarter. Our fair value calculation is $27. Credit Suisse has a 12-month target price of $28, S&P's is $26 and the consensus median price on Yahoo Finance is $26. A detailed summary of INTC financial data can be viewed here.

Our SA record on individual stock writings can be found here.

Disclosure: I am long BBY, INTC.

Source: Best Buy And Intel: Undervalued And Experiencing Aggressive Stock Buybacks