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Bringing the value back. Profitable companies (return on equity of at least 20% in the past two years) that have undertaken significant buybacks (shares outstanding decreased by at least 10%).

Buybacks

Stock buybacks can indicate profitability, as the company buying back stock must have cash to spend. Additionally, buybacks may signal that the company's management feels that the stock is undervalued.

According to a [[link1]] by FCLT Global, buyback timing may reflect inaccurate assessments of the value of companies’ stocks - meaning that management may actually buy back stock when prices are relatively high.