Globe Life(US:GL) ZACKS·2025-12-16 17:17Core Viewpoint - Globe Life Inc. (GL) is experiencing strong investor confidence, with shares closing at $140.65, near its 52-week high, indicating potential for further price appreciation [1] Financial Performance - Earnings of Globe Life grew by 13.3% over the last five years, significantly outperforming the industry average of 5.5% [2] - The stock has a solid track record of beating earnings estimates in three of the last four quarters, with an average surprise of 0.65% [2] Stock Performance - Globe Life shares have gained 33% in the past year, outperforming the Finance sector and the Zacks S&P 500 composite, which grew by 14.7% and 14.8% respectively [3] - Compared to peers, Aflac Incorporated (AFL) and Unum Group (UNM) rose by 8.6% and 5.9%, while AMERISAFE, Inc. (AMSF) saw a decline of 25.8% [4] Revenue Growth Drivers - Revenue growth is driven by life and health premium gains and improving net investment income [7] - The company expects net life sales to increase by approximately 3% at American Income, 1% at Liberty National, and nearly 4% at direct-to-consumer channels in 2025 [17] Future Projections - The Zacks Consensus Estimate for Globe Life's 2025 earnings per share indicates a year-over-year increase of 17.8%, with revenues projected at $6.03 billion, reflecting a 4.4% improvement [9] - For 2026, earnings per share and revenues are expected to increase by 3.1% and 5.1% respectively from 2025 estimates [9] Target Price and Upside Potential - The Zacks average price target for Globe Life is $166.69 per share, indicating a potential upside of 19.5% from the last closing price [10] Return on Capital - Globe Life's trailing 12-month return on equity is 21.8%, surpassing the industry average of 14.9% [13] - The return on invested capital (ROIC) is 12.9%, better than the industry average of 7.2%, reflecting the company's efficiency in utilizing funds [14] Liquidity and Capital Position - The company maintains a strong liquidity position with sufficient cash-generation capabilities, targeting a consolidated Company Action Level RBC ratio of 300% to 320% for 2025 [20] - Globe Life has a strong capital position that supports shareholder value enhancement through share buybacks and dividend payouts, with a CAGR of 7% in dividends over the past eight years [21] Overall Investment Appeal - Globe Life's higher life and health sales, improved invested assets, strong liquidity, and effective capital deployment make it an attractive stock for long-term investment [22]