From Nasdaq: 2025-05-19 09:26:00

Three major companies, Arista Networks, Apple, and Applied Industrial Technologies, have recently announced stock buybacks to boost shareholder value. Stock buybacks are a way for companies to reinvest in themselves and can lead to increased earnings per share. Critics exist, but buybacks generally benefit shareholders, especially for mature companies.

Arista Networks saw impressive revenue growth of nearly 30% year-over-year, driven by its leadership in data-driven networking for AI, data centers, and more. The company also announced a $1.5 billion repurchase program. Apple, facing challenges in 2025, unveiled a massive $100 billion buyback program amid tariff uncertainties. Analysts have revised EPS expectations lower.

Applied Industrial Technologies exceeded expectations, with a 4% increase in EPS and a 2% rise in sales. The company’s strong cash generation led to a 50% YoY increase in free cash flow. AIT also announced a new repurchase program.

Buybacks can benefit shareholders by boosting stock prices and EPS, as seen with these companies. Zacks Investment Research highlights the advantages of stock buybacks for mature companies. Consider exploring Zacks’ top stock picks for potential gains. Experts have identified 7 elite stocks with strong buy potential.

For more information on specific companies, you can access free stock analysis reports for Arista Networks, Apple, and Applied Industrial Technologies. This article was originally published by Zacks Investment Research.



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