5 Stocks Using Buybacks to Drive Serious Upside Into 2026Written by Thomas Hughes on December 22, 2025
At a Glance- Share buybacks are a powerful tool for companies, enabling them to return capital efficiently.
- Shareholder leverage increases as share counts decline.
- Aggressive buybacks are a sign of C-suite confidence in future results and capital returns.
Share buybacks are a powerful tool that companies use to provide value for shareholders. The benefits are numerous, including tax efficiency, increased demand, reduced supply, and the leverage provided to existing shareholders, not to mention the impact on market sentiment.
Share buybacks, specifically those that aggressively reduce the share count, are a sign of C-suite confidence, often reflected in analysts' and institutional buying trends and bullish stock price trends. This is an examination of five buyback plans that fit the bill.
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Citigroup Has Tailwinds to Drive It Higher in 2026 Citigroup (NYSE: C) has numerous tailwinds to drive its stock price higher, including share buybacks. The buybacks reduced the share count by a modest single-digit figure in 2024 and are on track to exceed the pace in 2025. Among the other catalysts for the financial stock are improved safety controls in the investment business, beat-and-raise results in the Q3 fiscal year 2025 (FY2025) earnings release, and an uptrend in analysts' sentiment.
Among the latest revisions, JPMorgan Chase analysts upgraded to Overweight from Neutral, citing the improved outlook. The takeaway for investors is that Citigroup’s buyback plan is reliable for 2026, including the dividend, and distribution increases are likely. Growing and improving cash flow quality allows for increased buyback capacity and dividend increases.
Barrick Mining Corporation: Digging Money Out of the Ground Barrick Mining Corporation (NYSE: B) literally digs money out of the ground, and conditions have never been better. The company’s primary input cost, fuel, is trading at long-term lows while gold prices continue to surge, providing near-record margins and cash flow. This allows for a dividend yielding about 1.5% in late 2025 and share buybacks.
The buybacks are aggressive, having reduced the count by 1% sequentially in Q3 FY2025 and 3% year-to-date (YTD), and are expected to continue. The Q3 release included a $1 billion increase to the authorization, ensuring buybacks in the next few quarters at a minimum. Other catalysts on the horizon include the potential spin-off and IPO of its US operations.
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Allison Transmission Holdings Among Most Aggressive Share Buyers Allison Transmission (NYSE: ALSN) doesn’t provide many details on its buyback plans from quarter to quarter, but has historically reduced its count aggressively. The company has repurchased more than 63% of its shares since 2012 and is on track to reduce the count by a modest single-digit figure in 2025. Among the opportunities for investors is a long-term low in the share price, driven by revenue weakness in 2025, and the trend-following signal that it produced.
The signal shows support in alignment with a prior high, compounded by increased trading volume and accumulative activity among analysts and institutions. Analysts rate the stock as a Hold and are leading the market into its reversal with their price target revisions. Institutions own more than 95% of the shares and have bought at a pace of $2 for each $1 sold in Q3 FY2025 and quarter-to-date in Q4.
Abercrombie & Fitch Co.: Reversal Is in Style for 2026 Abercrombie & Fitch Co. (NYSE: ANF) stock, which is operating in fiscal year 2026, struggled in early 2025 due to growth concerns and uncertainty rather than actual weakness. The takeaway in late 2025 is that outperformance is the trend, growth remains, and cash flow is solid. The company doesn’t pay dividends but instead aggressively buys back shares, reducing the share count by 9% year-over-year (YOY) in the quarter and 7.7% YTD.
Analyst sentiment reflects growing interest, a 70% increase in coverage, and a leading trend in price targets that is reversing the stock price action. Assuming upcoming releases remain healthy, this market could advance as much as 50% to 60% to align with record highs set in 2024.
Dick’s Sporting Goods: Core Business Is Good, Plus the Foot Locker Opportunity Dick’s Sporting Goods’ (NYSE: DKS) share count was up YOY in Q3 FY2026 as a result of its Foot Locker acquisition; however, it won’t be for long. Dick’s Sporting Goods is an aggressive share buyer, as reflected in the core metrics. The core adjusted share count fell by more than 2% as repurchase activity nearly doubled.
Buybacks are expected to continue in the upcoming quarters due to the cash flow outlook and authorization, and will soon whittle down the reported increase. Integrating Foot Locker is a hurdle for 2026, but it is not expected to impact buyback activity. The primary concern is impairments, as underperforming stores are closed, and the cost of brand invigoration.
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