Why 3 Struggling Stocks Are Suddenly Spending Big on Buybacks

Key Points

• D.R. Horton authorized a $5 billion buyback, raising its 2026 repurchase guidance by 30% amid housing affordability pressures and rising mortgage rates.
• CAVA Group announced a $100 million buyback with shares down more than 60% from 2024 highs, marking a notable shift from its limited repurchase history.
• FTAI Aviation unveiled a $500 million buyback as shares are down 40% from their highs, with analysts projecting more than 70% upside tied to its growing power business.

Following bouts of considerable underperformance, notable names across the housing, restaurant, and aviation industries have announced significant buyback programs. This includes a top U.S. homebuilder that now has buyback capacity equal to more than 10% of its market capitalization.

Additionally, two other names have announced buyback programs worth $100 million or more after engaging in little to no buyback activity previously. With shares under pressure, these three names are signaling confidence in their outlooks.

D.R. Horton Ups Buyback Guidance by 30% as Rising Rates Pressure Housing

First up is one of the largest homebuilding companies in the U.S., D.R. Horton NYSE: DHI. D.R. Horton, along with many other homebuilding and housing-related stocks, has had a difficult run in 2026.

Shares are approximately flat on the year, with home sales revenue dropping 3% year-over-year (YOY) in its latest quarter, and earnings per share (EPS) falling 4.8%.

Affordability has been a significant headwind to homebuilder performance, and matters have only gotten worse lately. Rates on 30-year mortgages have climbed to 7%, their highest level since early 2025, making it even more difficult to finance home purchases.

However, D.R. Horton is indicating long-term confidence by recently authorizing an additional $5 billion share buyback program. This program has no expiration date and is equal to approximately 13% of its market capitalization, a very high percentage. D.R. Horton now expects to repurchase at least $3.25 billion worth of shares in 2026. This represents a significant increase of at least 30% from its prior guidance of $2.5 billion in expected buybacks.

These factors indicate that D.R. Horton wants to move quickly to buy back stock near current levels to maximize share count reduction. This suggests that the company is confident in a long-term recovery, despite the fierce headwinds its business currently faces.

CAVA Announces $100 Million Buyback as Shares Plummet

Fast casual restaurant operator CAVA Group NYSE: CAVA has experienced a very dramatic fall from grace. After gaining 162% in 2024, shares fell 48% in 2025 and are down approximately 10% in 2026.

Overall, CAVA has fallen more than 60% from its 2024 highs. While growth has fallen off from its peak near 39% in 2024, sales still rose by more than 30% in its last two quarters.

The company has also increased its last 12 months' operating margin from around 5% at the end of 2024 to 5.7%. Analysts expect growth to moderate over the coming quarters to a low 20% range.

Amid this, the company has announced a $100 million share buyback program, equal to around 1.6% of its market capitalization. Although not large, the program is notable for multiple reasons. First, CAVA has not historically engaged in significant common stock buybacks, other than doing so to cover tax withholdings from employee stock vesting. Additionally, the program expires in approximately one year. These factors suggest that CAVA currently sees an opportunity to repurchase stock with its shares down precipitously, and that it may do so rather quickly.

FTAI Aviation Signals Confidence Amid Strong Growth With $500 Million Buyback

Shares of FTAI Aviation NASDAQ: FTAI have taken a huge turn after starting 2026 off hot. Through the first two months of the year, shares were up as much as 58%. However, the stock is now solidly in the red, down approximately 12% year-to-date. The company primarily operates in the aftermarket aircraft engine space, where the conflict in Iran has dampened sentiment amid soaring jet fuel prices. This could hurt aftermarket demand because older planes are less fuel-efficient.

Nonetheless, the company continues to grow at a very impressive clip, with sales rising 41% YOY last quarter, and Aerospace Products growing 78% YOY. The company is also getting into the data center energy market with its power business on track to launch in Q4. It has already signed a $1.465 billion gas turbine generator set supply agreement with a leading U.S. hyperscaler in a joint venture with Jereh Group.

FTAI has announced a $500 million buyback program as shares have now slid approximately 40% from their highs. The program is equal to around 2.7% of the firm’s market capitalization and expires in approximately three years. Similar to CAVA, FTAI has also not utilized buybacks much throughout its history. As FTAI’s share price tanks even as it grows quickly and enters new markets, the company may believe investors are not fairly valuing its future opportunities.

Analysts Eye Large Gains in FTAI as Power Strategy Ramps

Looking ahead, analysts are pointing to big-time upside in FTAI, supporting the undervaluation rationale indicated by its buyback program. The MarketBeat consensus price target near $316 implies more than 70% upside.

The company’s power business is the biggest watch item ahead, as it expects to generate $450 million in EBITDA in 2027 from this business alone. This is a new business for FTAI, requiring strong execution as it looks to deliver on its $1.465 billion order.

It will also be important to track whether the firm generates additional power orders to show that this is a sustainable growth area rather than a one-time sale. FTAI sees potential for its power EBITDA to be as high as $750 million next year, provided that additional order growth is strong.