Globe Life(US:GL) ZACKSยท2025-07-10 15:11Core Insights - Globe Life Inc. (GL) shares are trading at a discount compared to the Zacks Accident and Health Insurance industry, with a forward price-to-earnings multiple of 8.22X, lower than the industry average of 12.27X, the Finance sector's 16.72X, and the Zacks S&P 500 Composite's 22.52X [1] - Globe Life has a market capitalization of $9.7 billion and an average trading volume of 0.6 million shares over the last three months [1] - The company has shown solid upward momentum, with shares closing at $117.60, above the 200-day simple moving average of $116.79 [3] - Globe Life's shares have surged 41.5% over the past year, outperforming the industry growth of 24.2%, the Finance sector's 18.8%, and the Zacks S&P 500 composite's 10.1% [4][7] - The Zacks Consensus Estimate projects a 9.8% year-over-year increase in earnings per share for 2025, with revenues expected to reach $6.04 billion, reflecting a 4.6% improvement [5] - The average target price for Globe Life shares is $145, suggesting a potential upside of 19.7% from the last closing price [9] Financial Performance - Globe Life's trailing 12-month return on equity is 21.4%, exceeding the industry average of 15.5% [11] - The return on invested capital (ROIC) for the trailing 12 months is 12.7%, better than the industry average of 7.6%, indicating effective fund utilization [12] - Earnings have grown by 13.3% over the past five years, outperforming the industry average of 5.5% [8] Growth Drivers - Globe Life is experiencing revenue growth driven by premium increases in its Life Insurance and Health Insurance segments, as well as net investment income [13] - The American Income and Liberty National divisions are expected to contribute significantly to future top-line growth, with net life and health sales projected to grow in the mid-teens for Liberty National [14] - The company maintains a strong liquidity position and has targeted a consolidated Company Action Level RBC ratio of 300% to 320% for 2025, supporting its financial strength [16] Shareholder Value - Globe Life has consistently increased its dividend over the past eight years, with a compound annual growth rate (CAGR) of 7% [17] - The company's strong capital position allows for enhanced shareholder value through share buybacks and dividend payouts [16] Conclusion - Globe Life's combination of higher life and health sales, improved invested assets, increased productivity, strong liquidity, and effective capital deployment makes it an attractive investment opportunity [18] - The company holds a favorable VGM Score of B, indicating strong value, growth, and momentum compared to peers [18] - Higher return on capital, favorable growth estimates, and attractive valuations are expected to benefit the insurer in the long term [19]