These 3 Stocks Are Buying Back Billions in Shares

Core Viewpoint - Companies with strong balance sheets are increasingly engaging in stock buybacks as a shareholder-friendly strategy amid market volatility and sector rotations in 2025, indicating management's confidence in their businesses and the undervaluation of their stocks [1] Group 1: Stock Buyback Announcements - Multiple large-cap stocks have announced significant buyback programs, with one consumer discretionary company having buyback capacity equal to nearly 16% of its market cap, reflecting high confidence in future performance [2] - Lennox International announced an increase in its buyback capacity to $1 billion, totaling just under $1.3 billion, which is about 6.4% of its market capitalization [3] - Deckers Outdoor increased its buyback authorization to approximately $2.5 billion, equating to 15.8% of its market capitalization, indicating a strong ability to reduce outstanding shares [7] Group 2: Financial Performance and Metrics - Lennox International's operating margin expanded from around 14% in 2022 to nearly 19.5% in 2024, with full-year adjusted EPS growing by 54% [4][5] - Deckers Outdoor's stock gained approximately 265% from early 2022 to January 2025 but has since fallen about 53%, prompting the recent buyback authorization [6][8] - Tenaris approved a new share repurchase program valued at $1.2 billion, which is approximately 6.7% of its market capitalization, and has a strong dividend yield of just under 5% [11][12] Group 3: Cash Reserves and Future Buyback Capacity - Deckers Outdoor has a cash balance of just under $1.9 billion and only $277 million in debt, providing a strong ability to execute its buyback plans [9] - Tenaris ended the last quarter with a net cash balance of $4 billion and generated free cash flow of over $2.1 billion in the last 12 months, allowing it to potentially execute its full buyback capacity without reducing cash reserves [13]