Globe Life(US:GL) ZACKSยท2025-08-19 16:01Core Insights - Globe Life Inc. (GL) shares have increased by 39.8% over the past year, significantly outperforming the industry and broader market indices [1][7] - The company has a market capitalization of $11.01 billion and an average trading volume of 0.6 million shares over the last three months [1] - Globe Life's earnings have surpassed estimates in three of the last four quarters, with an average beat of 2.77% [2] Performance Metrics - The stock is currently trading above its 50-day simple moving average of $127.32, indicating strong upward momentum [3] - Globe Life's forward price-to-earnings ratio is 9.19X, lower than the industry average of 12.16X, suggesting the stock is trading at a discount [8] - The trailing 12-month return on equity for Globe Life is 21.2%, exceeding the industry average of 15% [13] Growth Projections - The Zacks Consensus Estimate projects a 15.7% year-over-year increase in earnings per share for 2025, with revenues expected to reach $6.04 billion, reflecting a 4.5% improvement [9] - Analysts have raised earnings estimates for 2025 and 2026, with a 5.3% and 1% increase in consensus estimates, respectively, over the past 30 days [10] Revenue Drivers - Globe Life's revenue growth is supported by premium increases in its Life and Health Insurance segments, as well as net investment income [15] - The American Income and Liberty National divisions are expected to drive future top-line growth, with net life and health sales projected to grow in the mid-teens [16][17] Financial Strength - The company maintains a strong liquidity position and has targeted a consolidated RBC ratio of 300% to 320% for 2025, indicating financial stability [18] - Globe Life has consistently increased its dividend over the past eight years, with a compound annual growth rate (CAGR) of 7% [19] Investment Appeal - Globe Life's combination of higher sales, improved capital efficiency, and attractive valuations positions it as an appealing investment opportunity [20][22] - The stock has a favorable VGM Score of B, indicating strong value, growth, and momentum compared to peers [20]