A study of analyst recommendations at the major brokerages shows that Jack in the Box, Inc. (JACK - Get Report) is the #24 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. Jack in the Box, Inc. 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. JACK operates in the Grocery & Drug Stores sector, among companies like CVS Health Corporation (CVS) which is down about 0.8% today, and Walgreens Boots Alliance Inc (WBA) trading higher by about 0.4%. Below is a three month price history chart comparing the stock performance of JACK, versus CVS and WBA. JACK is currently trading off about 2.2% midday Tuesday.
More from Stocks
Microsoft Tops Estimates on Enterprise Strength: 10 Key Takeaways
The software giant reported double-digit growth for a slew of major businesses. And outside of some gaming headwinds, it expects the December quarter to be strong as well.
Tesla Changes Up Format of Shareholder Call, In Addition to Posting Profit
On its third-quarter call, Tesla management incorporated several questions from unidentified investors before turning to Wall Street analysts.
F5 Networks Shares Advance After Fourth-Quarter Results Beat Estimates
Revenue at the Seattle network-security and -optimization provider rose 4.9%.
Johnson & Johnson Confirms $4 billion 'Agreement in Principle' Opioid Settlement
Johnson & Johnson confirmed Wednesday that it will contribute $4 billion to a liability fund amid at redressing victims of the nation's opioid crisis, noting the payment will hive its previously-reported third quarter earnings.