Ticker Reports for June 3^rd

These 3 Stocks Are Buying Back Billions in Shares

As market volatility and sector rotations persist in 2025, companies sitting on strong balance sheets are leaning into one of the most shareholder-friendly strategies available: stock buybacks. A wave of fresh repurchase authorizations has hit the tape in recent weeks, signaling confidence from management teams about the future of their businesses and the current undervaluation of their stocks. These announcements are especially notable in the current environment, where selective value and capital return are once again top priorities for investors.

Multiple large-cap stocks just announced significant buyback programs. Among them is one of the hottest consumer discretionary names over the past few years. It now has buyback capacity equal to nearly 16% of its market cap, and its shares are down massively from highs. This suggests the company is highly confident in the ability of its shares to perform well going forward.

LII: Strong Mid-Term Industrials Performer Boosting Buybacks and Dividends

First up is Lennox International (NYSE: LII), an approximately $20 billion player in the heating, ventilation, air conditioning, and refrigeration space. On May 22, the company announced an increase to its buyback capacity of $1 billion, bringing its total capacity to just under $1.3 billion.

As of the May 30 close, this is equal to about 6.4% of the company’s market capitalization. In addition, the company announced a very notable 13% increase to its quarterly dividend.

The next $1.30 per share dividend will be payable on July 15 to shareholders of record on June 30. This gives the stock an indicated dividend yield of 0.9%. Despite achieving relatively moderate sales growth over the last couple of years, Lennox has been a standout performer.

Since the end of 2022, the stock has provided a total return of nearly 142% as of the May 30 close. The company’s operating margin expanded significantly from around 14% in 2022 to nearly 19.5% in 2024. Its full-year adjusted earnings per share (EPS) grew by 54% over this period, supporting the rise in shares.

DECK: Ups Repurchase Capacity After Quarter of Record Buybacks

Next up is one of the most talked-about consumer discretionary stocks over the past several years, Deckers Outdoor (NYSE: DECK). From the beginning of 2022 to Jan. 30, 2025, the stock gained approximately 265%. However, since then, the trajectory of the Hoka shoemaker’s stock has pointed straight down. From that all-time high in January, the stock is down approximately 53% as of the May 30 close. The company’s recent share repurchase authorization announcement indicates that it may be looking to take advantage of this huge fall from grace.

On May 22, along with its fiscal Q4 2025 results, Deckers announced it had increased its buyback authorization to approximately $2.5 billion. This equates to an absolutely massive 15.8% of the company’s market capitalization as of the May 30 close. This gives the company a huge ability to decrease its outstanding share count and provide a large tailwind to its EPS.

The company already stepped up its buybacks in a big way in calendar Q1 as the huge drop in shares began to manifest. The company spent $266 million on repurchases, by far the highest amount in a single quarter in its history. In Q4, when shares were nearing their peak, the company spent just $50 million on buybacks.

This buyback authorization suggests the firm may be looking to step up repurchases even further. Decker’s cash balance of just under $1.9 billion, while only having $277 million in debt, gives it a very strong ability to do so. Adding to this ability is the fact that the company is relatively frugal when it comes to capital expenditures, spending an average of just $22 million over the last four quarters.

TS: Robust Balance Sheet, 5% Dividend, Substantial Buyback Capacity

Last up is Tenaris (NYSE: TS). The large-cap steel pipe supplier for oil and gas companies recently approved a substantial new share repurchase program, valued at $1.2 billion.

As of the May 30 close, this number is equal to approximately 6.7% of the company’s market capitalization.

Tenaris also has a very strong dividend yield of just under 5%. Tenaris first started buying back shares at the beginning of 2024. The company has been making notable use of buybacks since, spending an average of $315 million on repurchases per quarter. This buyback pace suggests it could use its full capacity over the next 12 months.

Tenaris remains in a very strong position to continue this buyback pace if it chooses. It ended 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. Thus, if operating results remain similar going forward, the company could execute its full buyback capacity without reducing its cash reserves.

Overall, these three firms are reiterating their commitment to returning capital to shareholders through their new buyback authorization. Deckers stands out due to the dramatic fall in its share price and its gigantic buyback authorization.

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3 Companies to Buy on This Early Cycle Recovery

There comes a time in every cycle for investors to start considering where the best odds of having a green year are, and it is all rooted in the way that the broader United States economy is headed next. Today, everyone might think that the cycle is still running hot as it has since the COVID-19 pandemic, when the system was flooded with low interest rates and newly printed money that needed to make its way through businesses and consumers alike.

With this in mind, today’s cycle looks a lot different; with bond yields on the rise and higher interest rates, the Federal Reserve (the Fed) is going to restart the cycle into the early stages of spending and restocking now that prices and inflation have come slightly off in this normal phase of the cycle. Understanding that declining inflation will make it easier for businesses to get inventory on hand when interest rates eventually come down is the foundation for this new cycle.

That is where stocks in the basic materials sector come into play as a high probability area of upside for the coming months and quarters. Keeping a watchlist with names like 3M (NYSE: MMM), Cleveland-Cliffs Inc. (NYSE: CLF), and even Dow Inc. (NYSE: DOW) can tilt the odds in favor of investors looking to end the year 2025 on a green note within their portfolios, where the dynamic is tied directly to where the broader cycle might be headed next.

3M Leads the Way in Price Action

In this entire sector of recovery andow prices, one n restocking at lame stands out in terms of relative price action. 3M stock now trades at 95% of its 52-week high, and it might make a new high for the year in the short term, opening the floodgates for some big momentum investors to come in right after.

Speaking of new buyers, this is where investors can start to connect the dots for a stock like 3M. As of mid-May 2025, those from UBS Asset Management decided to boost their holdings in 3M stock by as much as 10.9%, bringing their stake to a worth up to $616.6 million today.

This transaction should give other investors a sort of “green light” to consider buying some for themselves shortly, especially with all the fundamental settings lined up to support the company’s future upside. Now, the question is where this upside might land for new investors.

Stephen Tusa, an analyst at J.P. Morgan, has an answer to that. As of mid-May 2025, this analyst decided not only to reiterate an Overweight rating for 3M but also to place a new valuation target of up to $167 per share, which would imply a new 52-week high and a net implied upside of 12.7% from its current trading price.

A Beaten Down Industry, Crazy Good Risk-to-Reward

Cleveland-Cliffs is a stock that trades at 31% of its 52-week high level, meaning that most potential downside and bearish scenarios are likely already priced into the company today. These bearish scenarios are surely aligned with the current trade tariff uncertainty.

As the new trade policy implemented by President Trump focuses on an industry like steelmaking, it would make sense to see a massive headwind in a name like Cleveland-Cliffs today. However, these prices have left little to no room for the stock to continue moving lower, despite the uncertain outcome of the tariff developments.

A way for investors to verify that this theme is alive and well is to observe the company’s short interest declining by 4.9% over the past month alone, a sign that bears are capitulating to the fact that the risk-to-reward ratio is heavily set in favor of buyers today.

Not to mention, bears might also be on the run due to Wall Street’s consensus price target of up to $12.7 per share today, which calls for a massive upside potential of 117.7% from today’s low prices. Now, investors can see the importance of lining their portfolios up with the broader economic cycle, as this typically provides the best setups.

Capital Warms Up to Dow Stock

This is another name in the sector that definitely represents limited downside for investors today, considering that Dow stock now trades at 48% of its 52-week high, also pricing in some of the worst-case scenarios that the bears might have had in mind previously.

Understanding this favorable position may have led institutional buyers to consider the stock for their portfolios moving forward, as evidenced by the $785 million worth of buying that has taken place in the current quarter alone, which builds on the $1.3 billion that also flowed into Dow stock over the past quarter.

In terms of upside, Wall Street has landed on a consensus valuation of $ 38.80 per share today, calling for up to a 40% upside as well. The markets also seem fairly confident that the stock can reach this target in the short term, considering that Dow stock is now trading at a forward price-to-earnings (P/E) ratio of up to 20.2x, which is above the group’s average of 15.5x.

What this means in terms of implications is that Dow is the one name in the group that the market is willing to overpay for, a theme often tied to confidence in future growth and upside, which is now justified by the current business and economic cycle.

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Rocket Lab Expands Into Payloads: Should You Be Paying Attention?

Rocket Lab USA, Inc. (NASDAQ: RKLB) has taken another significant step in its evolution from a launch provider to a vertically integrated space and defense company. The company recently announced a definitive agreement to acquire Geost, a developer of electro-optical and infrared (EO/IR) payloads for national security satellites.

With this acquisition, Rocket Lab officially enters the payload segment, broadening its capabilities, improving its margins, and positioning itself as a full-service provider in the growing national security space race.

Following the announcement, RKLB received several bullish analyst upgrades. Firms highlighted the deal’s strategic value and its long-term implications for the company’s position in the defense and aerospace sectors.

Rocket Lab to Acquire Geost for $275 Million

Last week, Rocket Lab unveiled plans to acquire Geost in a deal valued at up to $275 million, including $125 million in cash and $150 million in Rocket Lab stock, along with a potential $50 million earnout. The deal is expected to close in the second half of this year. It includes Geost’s intellectual property, manufacturing infrastructure in Arizona and Virginia, and its team of 115 highly skilled engineers and technical staff.

Geost brings over two decades of experience developing EO/IR payloads used in missile tracking, tactical intelligence, surveillance, reconnaissance (ISR), and space domain awareness. These are all key priorities for the U.S. Department of Defense and are aligned with initiatives such as the Space Development Agency’s Tracking Layer and Golden Dome programs.

The move expands Rocket Lab’s value proposition beyond launch and satellite buses into the high-value payload space, reducing integration risks and increasing control over mission cost and timelines, which is particularly important for defense customers.

Rocket Lab CEO Peter Beck said of the acquisition: “With the acquisition of Geost, we’re bringing advanced electro-optical and infrared payloads in-house to support secure, responsive, and cost-effective systems at scale.”

Analysts See Upside Following Announcement

The market took notice. On May 28, several analysts raised their price targets for Rocket Lab. Roth Capital raised its target price from $25 to $35, while maintaining a Buy rating. Stifel Nicolaus analyst Erik Rasmussen also increased his target price from $29 to $34, citing the strategic importance of the Geost acquisition and its potential to expand Rocket Lab’s addressable market significantly.

Analysts at Stifel emphasized that the acquisition strengthens Rocket Lab’s foothold in defense and aerospace and supports its long-term growth strategy by unlocking new revenue streams. Needham & Company also weighed in positively, increasing its target from $28 to $32 and maintaining its Buy rating.

In total, RKLB now has 14 analyst ratings, with a consensus rating of Moderate Buy. That said, the average price target currently sits at $25.18, implying a modest downside from current levels.

This reflects both the stock’s sharp run-up over the previous year, with gains exceeding 500%, and some skepticism surrounding its lofty valuation and lack of profitability, which have yet to align with the company’s long-term vision.

Technical Momentum and Market Positioning

Despite mixed earnings, momentum is clearly on Rocket Lab’s side. The stock has increased by over 536% in the past year and 42% so far this quarter, garnering significant attention from retail investors. Even during the recent broader market corrections, RKLB held up well and is now trading just beneath key resistance around the $30 level.

From a technical standpoint, the $25 level is shaping up as a potential new support zone. Investors looking to enter or add to positions may want to wait for some sideways consolidation or a retest of this level to confirm a higher low before chasing a breakout. Thereafter, a clean move above $30 could pave the way for new highs.

A Transformative Step in the Company’s Mission

Rocket Lab’s planned acquisition of Geost is more than just another deal; it’s a transformative step in the company’s mission to become a vertically integrated defense and space contractor. With analysts bullish on the move and momentum on its side, RKLB remains a name to watch, especially if it continues to execute and expand its presence in the national security space.