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Here's Why You Should Add Globe Life (GL) to Your Portfolio
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Globe Life Inc.’s (GL - Free Report) higher life and health sales, improved invested assets, increased productivity and agent count, strong liquidity position and effective capital deployment make it worth adding to one’s portfolio.
Earnings Estimate
The consensus estimate for Globe Life’s 2024 earnings per share indicates a year-over-year increase of 8.9% from the consensus estimate of 2023. The consensus estimate for 2024 revenues is pinned at $5.82 billion, implying a year-over-year improvement of 5.5% from the consensus mark of 2023.
The consensus estimate for 2025 earnings per share indicates a year-over-year increase of 8.1% from the consensus estimate of 2024. The consensus estimate for 2025 revenues is pinned at $6.09 billion, implying a year-over-year improvement of 4.8% from the consensus mark of 2024.
The expected earnings growth rate is 12.4%, which is better than the industry average of 5.8%.
Northbound Estimate Revision
The Zacks Consensus Estimate for GL’s 2024 and 2025 earnings has moved 0.2% north each in the past seven days. This should instill investors' confidence in the stock.
Earnings Surprise History
Globe Life has a decent surprise history, beating estimates in each of the last four quarters, the average earnings surprise being 2.11%.
Zacks Rank & Price Performance
GL currently carries a Zacks Rank #2 (Buy). In the past year, the stock has gained 0.3% compared with the industry’s growth of 19.5%.
Image Source: Zacks Investment Research
Return on Equity
Globe Life’s return on equity, a measure reflecting how efficiently a company utilizes shareholders’ money, was 24.3% in the trailing 12 months, which expanded 860 basis points year over year and compares favorably with the industry’s average of 19.5%.
Style Score
Globe Life has a VGM Score of B. The VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Back-tested results show that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best opportunities in the value investing space.
Business Tailwinds
Globe Life has been witnessing a positive trend in revenues, driven by premium growth in its Life Insurance and Health Insurance segments and net investment income.
The strong performance of the American Income and Liberty National divisions should continue to drive the top line in the future. Liberty National should continue to benefit from improved productivity and agent count. GL’s expansion initiatives to capture heavily populated and less penetrated areas should drive growth in the future. Net life sales, as well as net health sales, are expected to grow in the mid-teens for Liberty National.
Moreover, net investment income continues to be another important driver of the company’s top-line growth and has been exhibiting improvement over the last few years. The metric should continue to grow, riding on improved invested assets and higher interest rates on new investments.
The company has maintained a strong liquidity position with sufficient cash-generation capabilities. Its operations consist primarily of writing basic protection life and supplemental health insurance policies, which generate strong and stable cash flows. Globe Life targets a consolidated company action level RBC ratio in the range of 300% to 320%. The company anticipates the RBC ratio for 2023 to be slightly above the middle of the targeted range without any additional capital contributions.
A strong capital position enables Globe Life to enhance its shareholder value via share buybacks and dividend payouts. The insurer has continuously been increasing its dividend over the past eight years (2016-2023), witnessing a CAGR of 6.79%.
Attractive Valuation
Globe Life’s shares are trading at a price-to-earnings multiple of 9.08, lower than the industry average of 12.78. It also has an impressive Value Score of B. This style score helps find the most attractive value stocks.
Other Stocks to Consider
Some other top-ranked stocks from the Financial-Miscellaneous Services space are StepStone Group Inc. (STEP - Free Report) , WisdomTree, Inc. (WT - Free Report) and Euronet Worldwide, Inc. (EEFT - Free Report) . While StepStone sports a Zacks Rank #1, WisdomTree and Euronet Worldwide carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
StepStone’s earnings surpassed estimates in two of the last four quarters and matched in the other two, the average surprise being 7.64%. In the past year, shares of STEP have rallied 56.6%.
The Zacks Consensus Estimate for STEP’s 2024 and 2025 earnings has moved up nearly 6.7% and 3.3%, respectively, in the past 60 days.
WisdomTree’s earnings surpassed estimates in one of the last four quarters and matched in the other three, the average surprise being 10%. In the past year, shares of WT have soared 56.8%.
The Zacks Consensus Estimate for WT’s 2024 and 2025 earnings implies year-over-year growth of 37.8% and 9.4%, respectively, from the consensus estimate of the corresponding years.
Euronet Worldwide has a solid track record of beating earnings estimates in each of the trailing four quarters, the average being 2.88%. In the past year, shares of EEFT have gained 2.9%.
The Zacks Consensus Estimate for EEFT’s 2024 and 2025 earnings implies year-over-year growth of 13.5% and 13.1%, respectively, from the consensus estimate of the corresponding years.
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Here's Why You Should Add Globe Life (GL) to Your Portfolio
Globe Life Inc.’s (GL - Free Report) higher life and health sales, improved invested assets, increased productivity and agent count, strong liquidity position and effective capital deployment make it worth adding to one’s portfolio.
Earnings Estimate
The consensus estimate for Globe Life’s 2024 earnings per share indicates a year-over-year increase of 8.9% from the consensus estimate of 2023. The consensus estimate for 2024 revenues is pinned at $5.82 billion, implying a year-over-year improvement of 5.5% from the consensus mark of 2023.
The consensus estimate for 2025 earnings per share indicates a year-over-year increase of 8.1% from the consensus estimate of 2024. The consensus estimate for 2025 revenues is pinned at $6.09 billion, implying a year-over-year improvement of 4.8% from the consensus mark of 2024.
The expected earnings growth rate is 12.4%, which is better than the industry average of 5.8%.
Northbound Estimate Revision
The Zacks Consensus Estimate for GL’s 2024 and 2025 earnings has moved 0.2% north each in the past seven days. This should instill investors' confidence in the stock.
Earnings Surprise History
Globe Life has a decent surprise history, beating estimates in each of the last four quarters, the average earnings surprise being 2.11%.
Zacks Rank & Price Performance
GL currently carries a Zacks Rank #2 (Buy). In the past year, the stock has gained 0.3% compared with the industry’s growth of 19.5%.
Image Source: Zacks Investment Research
Return on Equity
Globe Life’s return on equity, a measure reflecting how efficiently a company utilizes shareholders’ money, was 24.3% in the trailing 12 months, which expanded 860 basis points year over year and compares favorably with the industry’s average of 19.5%.
Style Score
Globe Life has a VGM Score of B. The VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Back-tested results show that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best opportunities in the value investing space.
Business Tailwinds
Globe Life has been witnessing a positive trend in revenues, driven by premium growth in its Life Insurance and Health Insurance segments and net investment income.
The strong performance of the American Income and Liberty National divisions should continue to drive the top line in the future. Liberty National should continue to benefit from improved productivity and agent count. GL’s expansion initiatives to capture heavily populated and less penetrated areas should drive growth in the future. Net life sales, as well as net health sales, are expected to grow in the mid-teens for Liberty National.
Moreover, net investment income continues to be another important driver of the company’s top-line growth and has been exhibiting improvement over the last few years. The metric should continue to grow, riding on improved invested assets and higher interest rates on new investments.
The company has maintained a strong liquidity position with sufficient cash-generation capabilities. Its operations consist primarily of writing basic protection life and supplemental health insurance policies, which generate strong and stable cash flows. Globe Life targets a consolidated company action level RBC ratio in the range of 300% to 320%. The company anticipates the RBC ratio for 2023 to be slightly above the middle of the targeted range without any additional capital contributions.
A strong capital position enables Globe Life to enhance its shareholder value via share buybacks and dividend payouts. The insurer has continuously been increasing its dividend over the past eight years (2016-2023), witnessing a CAGR of 6.79%.
Attractive Valuation
Globe Life’s shares are trading at a price-to-earnings multiple of 9.08, lower than the industry average of 12.78. It also has an impressive Value Score of B. This style score helps find the most attractive value stocks.
Other Stocks to Consider
Some other top-ranked stocks from the Financial-Miscellaneous Services space are StepStone Group Inc. (STEP - Free Report) , WisdomTree, Inc. (WT - Free Report) and Euronet Worldwide, Inc. (EEFT - Free Report) . While StepStone sports a Zacks Rank #1, WisdomTree and Euronet Worldwide carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
StepStone’s earnings surpassed estimates in two of the last four quarters and matched in the other two, the average surprise being 7.64%. In the past year, shares of STEP have rallied 56.6%.
The Zacks Consensus Estimate for STEP’s 2024 and 2025 earnings has moved up nearly 6.7% and 3.3%, respectively, in the past 60 days.
WisdomTree’s earnings surpassed estimates in one of the last four quarters and matched in the other three, the average surprise being 10%. In the past year, shares of WT have soared 56.8%.
The Zacks Consensus Estimate for WT’s 2024 and 2025 earnings implies year-over-year growth of 37.8% and 9.4%, respectively, from the consensus estimate of the corresponding years.
Euronet Worldwide has a solid track record of beating earnings estimates in each of the trailing four quarters, the average being 2.88%. In the past year, shares of EEFT have gained 2.9%.
The Zacks Consensus Estimate for EEFT’s 2024 and 2025 earnings implies year-over-year growth of 13.5% and 13.1%, respectively, from the consensus estimate of the corresponding years.