Core Viewpoint - Globe Life Inc. has faced significant challenges in 2023, with a 16.7% decline in share price year-to-date, underperforming both the finance sector and the broader market, despite positive growth projections for earnings and revenues in the coming years [1][6][15] Financial Performance - Globe Life's shares have decreased by 16.7% in 2023, while the finance sector and S&P 500 have seen returns of 12% and 15%, respectively [1] - The company has been struggling with rising expenses, including policyholder benefits, acquisition costs, and interest expenses, leading to an increase in total expenses [2] - Administrative expenses are projected to be around 7% of premiums in 2024, which is an increase from 2023 levels [3] Debt and Capital Structure - Globe Life's long-term debt has risen, with a debt-to-capital ratio worsening; total debt increased by 11% year-over-year as of June 30, 2024 [4] - The company faces higher interest expenses due to its elevated debt levels, which could impact its creditworthiness if not managed properly [4] Stock Performance and Technical Analysis - The stock closed at $101.34, above its 50-day simple moving average of $93.43, indicating a potential uptrend [5] Growth Projections - The Zacks Consensus Estimate predicts a 12% year-over-year increase in earnings per share for 2024, with revenues expected to reach $5.82 billion, reflecting a 5.5% improvement [6] - For 2025, earnings per share and revenues are projected to grow by 10.6% and 4.7%, respectively, compared to 2024 estimates [6] Analyst Sentiment - Recent analyst activity shows one analyst has raised 2024 estimates, while two have increased 2025 estimates, indicating a slight positive sentiment [7] Return on Capital - Globe Life's trailing 12-month return on equity stands at 21.9%, surpassing the industry average of 20.9%, indicating effective utilization of shareholder funds [7] - The return on invested capital (ROIC) is 13.3%, significantly higher than the industry average of 4.6%, reflecting improved efficiency in generating income [8] Revenue Drivers - Revenue growth is being driven by premium increases in the Life Insurance and Health Insurance segments, as well as net investment income [9] - Strong performance from the American Income and Liberty National divisions is expected to contribute positively to future revenue growth [10] - Net investment income has shown improvement and is anticipated to continue growing due to better invested assets and higher interest rates [11] Liquidity and Capital Position - Globe Life maintains a strong liquidity position with robust cash generation capabilities, targeting a consolidated Company Action Level RBC ratio of 300-320% for 2024 [12] Shareholder Value - The company has a strong capital position, allowing for share buybacks and dividend payouts, with dividends increasing at a CAGR of 6.79% over the past eight years [13] Valuation - Globe Life is trading at a discount compared to the industry average, with a forward 12-month price-to-book ratio of 7.91X, lower than the industry average of 13.54X, presenting a compelling investment opportunity [14] Conclusion - Despite facing higher expenses, Globe Life's growth in life and health sales, improved investment assets, strong liquidity, and effective capital deployment suggest potential for recovery and sustained growth, making it a stock worth holding [15]

Winners presented a ceremonial check and thanked Mother to Mother for their positive impact on the community. "No child, mother, or family should go without their basic needs being met. I am proud to be part of an organization that gives back where we live, work, visit, and serve," said Agency Owner Jason Everett. Janie Busbee, Founder of Mother to Mother, shared her gratitude saying, "Through the generosity of Globe Life, Mother To Mother continues to serve thousands of low-income families across Middle Te ...

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Globe Life has supported Operation Gratitude for more than five years, donating over $100,000, crafting paracord lanyards, writing thank you cards, assembling care packages, and hand-filling Battalion Buddy bears for the children of deployed service members. "We're incredibly proud to support Operation Gratitude as part of our purpose-driven mission to help Make Tomorrow Better," said Jennifer Haworth, Executive Vice President and Chief Marketing Officer at Globe Life. "Our deployed military members and fir ...

It has been about a month since the last earnings report for Globe Life (GL) . Shares have added about 11.1% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Globe Life due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Globe Life Q2 Earnings Beat on Solid Underwriting ...

MCKINNEY, Texas, Aug. 15, 2024 /PRNewswire/ -- Globe Life Inc. (NYSE: GL) announced that its $170 million delayed draw term loan has been amended effective August 15, 2024. The principal amount of the loan has been increased from $170 million to $250 million and the maturity date has been extended from November 10, 2024 to August 15, 2027. Globe Life Inc. is a holding company specializing in life and supplemental health insurance for the middleincome market distributed through multiple channels, including d ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being u ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both. The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. Zacks Premium includes access to the Zacks Style Scores as well. What are the Zacks Style ...

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Revenue- Net investment income: $2 ...

Company Overview - Equitable Holdings, Inc. is expected to report revenues of $3.82 billion, reflecting a 14.5% increase from the same quarter last year [2] - Globe Life reported revenues of $1.45 billion for the quarter ended June 2024, slightly missing the Zacks Consensus Estimate by 0.01%, compared to $1.37 billion in the previous year [4] - Globe Life's quarterly earnings were $2.97 per share, surpassing the Zacks Consensus Estimate of $2.90 per share, and up from $2.61 per share a year ago [9][10] Earnings Expectations - Globe Life is projected to post quarterly earnings of $1.43 per share, indicating a year-over-year increase of 22.2%, although the consensus EPS estimate has been revised 1.2% lower in the last 30 days [8] - The current consensus EPS estimate for Globe Life is $3 on revenues of $1.47 billion for the upcoming quarter and $11.75 on revenues of $5.83 billion for the current fiscal year [13] Performance Metrics - Globe Life has exceeded consensus EPS estimates three times over the last four quarters [10] - Despite the positive earnings surprises, Globe Life shares have declined approximately 26.4% since the beginning of the year, contrasting with the S&P 500's gain of 16.5% [11] Industry Context - The Financial - Miscellaneous Services industry, to which Globe Life belongs, is currently ranked in the top 42% of over 250 Zacks industries, indicating a favorable outlook [7] - The Zacks Rank for Globe Life is 1 (Strong Buy), suggesting that the stock is expected to outperform the market in the near future [6]