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Here's Why Investors Should Retain Globe Life (GL) Stock Now
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Globe Life Inc. (GL - Free Report) has been gaining momentum on the back of premium growth, improved productivity and agent count, new investment yields, strong liquidity position and effective capital deployment.
Earnings Estimate
The Zacks Consensus Estimate for Globe Life’s 2024 earnings is pegged at $11.42 per share, indicating a 7.87% increase from the year-ago reported figure on 5.1% higher revenues of $5.80 billion.
Earnings Surprise History
Globe Life has a decent surprise history, beating estimates in each of the last four quarters, the average earnings surprise being 2.25%.
Zacks Rank & Price Performance
GL currently carries a Zacks Rank #3 (Hold). Over the past six months, the stock has gained 8.4% compared with the industry’s growth of 3.9%.
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 22.6% in the trailing 12 months, which compares favorably with the industry’s average of 19.8%.
Factors Driving Globe Life
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 continues to maintain the Company Action Level Risk-Based Capital ratio target in the band of 300% to 320%.
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%.
Stocks to Consider
Some better-ranked stocks from the Financial-Miscellaneous Services space are Greystone Housing Impact Investors LP (GHI - Free Report) , Blue Owl Capital Corporation (OBDC - Free Report) and StoneX Group Inc. (SNEX - Free Report) . While Greystone Housing sports a Zacks Rank #1 (Strong Buy), Blue Owl Capital and StoneX carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Greystone Housing’s 2024 revenues is pegged at $106.60 million, indicating a year-over-year increase of 0.8%. In the past six months, shares of GHI have gained 3.8%.
The Zacks Consensus Estimate for GHI’s 2024 earnings has moved up nearly 10.8% in the past 60 days, reflecting investors’ optimism.
Blue Owl Capital has a solid track record of beating earnings estimates in each of the last four quarters, the average being 3.35%. In the past six months, shares of OBDC have risen 7.7%.
The Zacks Consensus Estimate for OBDC’s 2024 earnings has moved up nearly 1.06% in the past 60 days, reflecting investors’ optimism.
StoneX has a solid track record of beating earnings estimates in three of the last four quarters and missed in one, the average being 14.37%. In the past six months, shares of SNEX have gained 14.1%.
The Zacks Consensus Estimate for SNEX’s 2024 earnings per share is pegged at $7.54, indicating a year-over-year increase of 3.7%.
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Here's Why Investors Should Retain Globe Life (GL) Stock Now
Globe Life Inc. (GL - Free Report) has been gaining momentum on the back of premium growth, improved productivity and agent count, new investment yields, strong liquidity position and effective capital deployment.
Earnings Estimate
The Zacks Consensus Estimate for Globe Life’s 2024 earnings is pegged at $11.42 per share, indicating a 7.87% increase from the year-ago reported figure on 5.1% higher revenues of $5.80 billion.
Earnings Surprise History
Globe Life has a decent surprise history, beating estimates in each of the last four quarters, the average earnings surprise being 2.25%.
Zacks Rank & Price Performance
GL currently carries a Zacks Rank #3 (Hold). Over the past six months, the stock has gained 8.4% compared with the industry’s growth of 3.9%.
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 22.6% in the trailing 12 months, which compares favorably with the industry’s average of 19.8%.
Factors Driving Globe Life
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 continues to maintain the Company Action Level Risk-Based Capital ratio target in the band of 300% to 320%.
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%.
Stocks to Consider
Some better-ranked stocks from the Financial-Miscellaneous Services space are Greystone Housing Impact Investors LP (GHI - Free Report) , Blue Owl Capital Corporation (OBDC - Free Report) and StoneX Group Inc. (SNEX - Free Report) . While Greystone Housing sports a Zacks Rank #1 (Strong Buy), Blue Owl Capital and StoneX carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Greystone Housing’s 2024 revenues is pegged at $106.60 million, indicating a year-over-year increase of 0.8%. In the past six months, shares of GHI have gained 3.8%.
The Zacks Consensus Estimate for GHI’s 2024 earnings has moved up nearly 10.8% in the past 60 days, reflecting investors’ optimism.
Blue Owl Capital has a solid track record of beating earnings estimates in each of the last four quarters, the average being 3.35%. In the past six months, shares of OBDC have risen 7.7%.
The Zacks Consensus Estimate for OBDC’s 2024 earnings has moved up nearly 1.06% in the past 60 days, reflecting investors’ optimism.
StoneX has a solid track record of beating earnings estimates in three of the last four quarters and missed in one, the average being 14.37%. In the past six months, shares of SNEX have gained 14.1%.
The Zacks Consensus Estimate for SNEX’s 2024 earnings per share is pegged at $7.54, indicating a year-over-year increase of 3.7%.