A study of analyst recommendations at the major brokerages shows that Timken Co. (TKR - Get Report) is the #82 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. Timken Co. 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. 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, TKR makes up 2.74% of the First Trust Materials AlphaDEX Fund ETF (FXZ) which is trading lower by about 0.5% on the day Thursday. TKR operates in the Industrial Machinery & Equipment sector, among companies like Illinois Tool Works, Inc. (ITW) which is up about 0.3% today, and Deere & Co. (DE) trading up by about 0.8%. Below is a three month price history chart comparing the stock performance of TKR, versus ITW and DE. TKR is currently trading up about 0.1% midday Thursday.
TheStreet’s Fundamentals of Investing Course will teach you the keys to making the right decisions in any market.
TheStreet’s Personal Finance Essentials Course will teach you money management basics and investing strategies to help you avoid major financial pitfalls.
TheStreet Courses offers dedicated classes designed to improve your investing skills, stock market knowledge and money management capabilities.
More from Stocks
Bayer Surges After Elliott Reveals $1.1 Billion Stake, Boosts Roundup Legal Team
Bayer shares traded near the top of the European market Thursday after activist investor Elliot Advisors revealed a $1.1 billion stake in the chemicals group and supported plans to boost its legal team in the face of thousands of Roundup weedkiller lawsuits.
Dow Futures Gain, Global Stocks Climb, As US-China 'Truce' Report Sparks Bulls
Wall Street futures extended gains Thursday, following on from a solid overnight session in Asia, amid reports of a potential truce in U.S.-China talks that could lead to the avoidance of new tariffs and a commitment to further, more detail discussions following this weekend's G20 Summit in Japan.
Economy, Immigration Headline First Democratic Presidential Nominee Debate
First Democratic debate 2019: Night One covers the economy, immigration healthcare and more.
What Stocks and Sectors Investors Should Watch During the Second Half of 2019
Curious about stocks or sectors that investors should watch now that we're transitioning into the second half of 2019? Here's what Real Money contributor Stephen Guilfoyle thinks.