See How Tech Data Ranks Among Analysts' Top Picks With Strong Buyback Activity

A study of analyst recommendations at the major brokerages shows that Tech Data Corp. (TECD) is the #127 broker analyst pick among those stocks screened by The Online Investor for strong stock buyback activity. To make that list, a stock must have repurchased at least 5% of its outstanding shares over the trailing twelve month period. In forming the rank, the analyst opinions from the major brokerage houses were tallied, and averaged; then, the list of stocks with strong buyback activity was ranked according to those averages.

Investors are often keenly interested in knowing which companies are buying back their own stock, because companies often will only make such a move if they feel their stock is undervalued. Tech Data Corp. is a company with strong buyback activity that is also considered a compelling buy by analysts; a bullish investor could take this to mean that sharp analyst minds came to the same bullish conclusion as the company itself that the stock is a good value, and therefore the stock should do well in the future.

START SLIDESHOW:
Top Analyst Picks With Strong Stock Buyback Activity »

Analysts studying companies buying back their own stock will also factor into their analysis that future earnings will now be spread over a smaller share count, thereby increasing the per-share earnings the remaining shares will enjoy, versus what that same number would have been absent the stock buyback activity.

According to the ETF Finder at ETF Channel, TECD makes up 1.93% of the First Trust Technology AlphaDEX Fund ETF (FXL) which is trading lower by about 0.2% on the day Tuesday.

TECD operates in the Computers sector, among companies like Apple Inc (AAPL) which is off about 0.5% today, and EMC Corp. (EMC) trading lower by about 4.1%. Below is a three month price history chart comparing the stock performance of TECD, versus AAPL and EMC.

TECD,AAPL,EMC Relative Performance Chart

TECD is currently trading off about 0.1% midday Tuesday.

null

More from Stocks

Stocks Slide on Renewed Trade War Concerns

Stocks Slide on Renewed Trade War Concerns

Emerging Markets Get Pounded by Global Trade Concerns

Emerging Markets Get Pounded by Global Trade Concerns

Video: Here's Where to Put Your Money Amid Trade War Fears

Video: Here's Where to Put Your Money Amid Trade War Fears

The Single Biggest Reason Trade War Fears Could Finally Topple the Stock Market

The Single Biggest Reason Trade War Fears Could Finally Topple the Stock Market

Activist-Targeted Rent-A-Center Sold to Vintage

Activist-Targeted Rent-A-Center Sold to Vintage