These 3 Stocks Boosting Buybacks Have Rallying Potential

Several key names are making notable moves when it comes to buyback authorizations. A detailed analysis indicates that the management teams of these large-cap stocks see value in their shares. Below, we’ll break down the bullish signals that these companies are sending. All data is as of the Sept. 18 close unless otherwise indicated.

WDAY Announces Huge $4 Billion Buyback Increase

First up is the $62 billion enterprise software company Workday (NASDAQ: WDAY). At its Financial Analyst Day on September 16, Workday announced that it had increased its buyback authorization by $4 billion. Now, the company’s total buyback capacity sits at $5 billion, equal to a very substantial 8% of its market capitalization.

Workday didn’t just approve this buyback without a clear intention to use it. The firm is specifically planning to buy back $5 billion worth of shares through fiscal 2027. With the company having reported its Q2 fiscal 2026 results in August, Workday looks set to engage in massive buyback spending over the next 16 months or so.

That’s a significant part of the reason shares popped by over 7% on September 17.

This announcement follows the recent trend in Workday’s repurchase activity, spending around $961 million on buybacks in the last two quarters combined. That’s an 86% increase compared to its buyback spending in the prior two quarters of $516 million.

This comes as shares have fallen by as much as 18% in 2025. Overall, Workday’s big buyback program suggests that the firm continues to see significant value in its shares. Workday’s forward price-to-earnings (P/E) ratio is around 24.5x, only about 5% higher than its lowest forward P/E over the last three years.

Chipotle’s Past Buyback Activity Suggests Shares May Be Attractively Valued

Next up is “fast-casual” dining giant Chipotle Mexican Grill (NYSE: CMG), which recently announced an additional $500 million share repurchase authorization. As of Sept. 15, the company has around $750 million in buyback capacity.

That equals a relatively small 1.4% of the stock’s market capitalization. However, Chipotle has significantly increased its pace of repurchases over the past four quarters. During that period, the company spent an average of approximately $465 million on quarterly buybacks. 

Meanwhile, in the preceding eight quarters, Chipotle spent an average of only $190 million on buybacks.

This makes a lot of sense considering Chipotle’s stock price trajectory. From June 30, 2024, to June 30, 2025, shares were down more than 20% in late July 2024 and mid-March 2025.

Chipotle’s biggest buyback sprees came in Q3 2024 and Q1 2025, with these significant drawdowns. This indicates that the company sees particular value in shares around the $50 mark.

With the stock now at nearly $39, it wouldn’t be surprising to see the company conduct big-time buybacks in Q3. The stock trades at a forward P/E ratio 30x, near its lowest level over the past three years. Thus, Chipotle’s share price looks like a somewhat attractive entry point.

TKO’s Management Portrays Confidence with Shares Near Highs

Finally, World Wrestling Entertainment (WWE) and Ultimate Fighting Championship (UFC) owner TKO Group (NYSE: TKO) is getting in on the buyback game. Overall, the entertainment company is planning $1 billion in buybacks, and it has already executed $26 million of this.

This $1 billion buyback program equals 4% of TKO’s market capitalization. Notably, $800 million of this program is being executed through an accelerated repurchase program (ASR). Essentially, TKO is employing Morgan Stanley to buy back shares quickly and expects to complete the ASR in December.

This marks a substantial shift in TKO’s willingness to repurchase stock. Since 2023, its total buyback spending has been around $270 million. In contrast to the other firms on this list, TKO trades very close to its all-time high closing price of around $204.50. 

However, on a forward P/E basis, the stock’s valuation doesn’t look overly frothy compared to its history. The 36x figure is solidly below its average 41.5x over its publicly traded life.

Analysts expect the company’s earnings to balloon in the first half of 2026. The huge media deals TKO signed for WWE and the UFC are big contributors to this. This positions TKO as a growth play, and its buyback plan suggests management sees the stock as attractively priced versus its longer-term potential.

Overall, considering their buyback program announcements and forward P/E ratios, WDAY, CMG, and TKO could see solid upside going forward.

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