Trading Near 52-Week High, Why GL Stock is Still Worth Buying Now

Core Viewpoint - Globe Life Inc. (GL) demonstrates strong investor confidence with its stock trading near a 52-week high, indicating potential for further price appreciation and solid upward momentum as it trades above key moving averages [1] Financial Performance - Earnings of Globe Life grew by 13.3% over the last five years, surpassing the industry average growth of 6.5% [2] - The stock has a solid track record of beating earnings estimates, achieving an average surprise of 4.36% in three of the last four quarters [2] Market Performance - Globe Life shares have gained 17% year to date, outperforming the industry decline of 5.3% and the Zacks S&P 500 composite's decline of 2.2% [3][4] Growth Projections - The Zacks Consensus Estimate for Globe Life's 2025 earnings per share indicates a year-over-year increase of 12.1%, with revenues projected at $6.08 billion, reflecting a 5.1% improvement [6] - For 2026, earnings per share and revenues are expected to increase by 8.5% and 5.1%, respectively, compared to 2025 estimates [6] Analyst Sentiment - Positive sentiment from analysts is evident, with six out of seven analysts raising estimates for 2025 and four for 2026 in the past 60 days, leading to a 2.3% and 0.9% upward revision in consensus estimates [7] Return on Capital - Globe Life's trailing 12-month return on equity stands at 21.9%, exceeding the industry average of 17.2%, indicating effective utilization of shareholder funds [8] - The return on invested capital (ROIC) is 13.1%, significantly higher than the industry average of 4.7%, reflecting efficient capital utilization [9] Valuation - Globe Life shares are trading at a price-to-book multiple of 9.22, lower than the industry average of 14.84, suggesting a favorable entry point for investors [10] Conclusion - Factors such as higher life and health sales, improved invested assets, increased productivity, strong liquidity, and effective capital deployment position Globe Life as an attractive investment opportunity [11] - The current affordability of the stock further supports the case for potential investment [12]