Stock of the Day

September 24, 2025

TKO Group (TKO)

$175.77
+$3.39 (+2.0%)
Market Cap: $32.63B

About TKO Group

TKO Group Holdings, Inc. operates as a sports and entertainment company. The company produces and licenses live events, television programs, and long-form and short-form content, reality series, and other filmed entertainment on digital and linear channels and via pay-per-view. It is involved in the merchandising of video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys, as well as sale of travel packages and tickets. In addition, the company engages in the corporate sponsorships and advertising business, which offers sale of in-venue and in-broadcast advertising assets, content product integration, and digital impressions. The company was incorporated in 2023 and is based in New York, New York. TKO Group Holdings, Inc. is a subsidiary of Endeavor Group Holdings, Inc.

Today's Trend

TKO Group Holdings, Inc. (NYSE: TKO) shares have decreased as investors weigh a favorable long-term growth thesis against new legal and execution concerns across its boxing and WWE businesses.

  • Strong monetization outlook supports the bullish case. TKO’s UFC and WWE franchises provide valuable, durable intellectual property that can be monetized through media rights, sponsorships, licensing, live events and archives. One analysis rates the stock “Buy” and projects 2026 revenue of $5.8 billion and adjusted EBITDA of $2.29 billion, implying potential upside to $235 per share if TKO achieves a 20-times EBITDA valuation. TKO Group: The Next Earnings Win Comes From Selling More Around The Show
  • Management’s investor presentation may provide additional strategic context. TKO presented at the Goldman Sachs Communacopia + Technology Conference, potentially giving investors more detail on media-rights negotiations, growth initiatives and the integration of its sports-entertainment assets. The transcript itself does not indicate a specific new catalyst. TKO Group Holdings, Inc. Presents at Goldman Sachs Communacopia + Technology Conference 2026
  • WWE programming and talent updates offer limited direct financial impact. Reports on WWE storylines, talent activity and upcoming matchups could support audience engagement, but they are unlikely to materially change near-term estimates without evidence of higher viewership, attendance or commercial revenue. TKO Reacts After 946 Sets Fire To The Bloodline's Car On WWE RAW
  • Boxing-related legal and promotional disputes add uncertainty. Don King reportedly issued a cease-and-desist involving Zuffa Boxing and a proposed Jai Opetaia–Noel Mikaelian event. Separately, promoter Eddie Hearn blamed TKO for a stalemate involving a potential Tyson Fury–Anthony Joshua fight. These disputes could complicate event scheduling, increase legal risk or limit TKO’s ability to capitalize on major boxing matchups. TKO Group, Zuffa Boxing issued cease-and-desist by Don King
  • “Resized” WWE superstar compensation could raise talent-retention concerns. TKO’s effort to adjust WWE compensation may improve cost discipline, but it could also create friction with performers or affect the ability to retain top talent. TKO Group COO Confirms Resized WWE Superstar Compensation

Investors are also mindful that TKO’s latest quarter included an EPS miss despite revenue growth, leaving the stock dependent on continued execution and high expectations.

These 3 Stocks Boosting Buybacks Have Rallying Potential

Written By Leo Miller on 9/22/2025

Stock Buybacks

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.