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GL Stock Near 52-Week High: A Signal for Investors to Hold Tight?
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Key Takeaways
GL's revenue growth is driven by life and health premium gains and improving net investment income.
GL expects 2025 net life sales to be up at American Income, Liberty National and direct-to-consumer channels.
GL targets a 300-320% RBC ratio for 2025, supporting buybacks and dividends.
Shares of Globe Life Inc. (GL - Free Report) closed at $140.65 on Monday, near its 52-week high of $147.83. This proximity underscores investor confidence. It has the ingredients for further price appreciation. The stock is trading above the 50-day and 200-day simple moving averages (SMA) of $133.94 and $129.85, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
Earnings of Globe Life grew 13.3% in the last five years, better than the industry average of 5.5%. GL has a solid surprise history. The stock has a solid track record of beating earnings estimates in three of the last four quarters while missing in one, the average being 0.65%.
Image Source: Zacks Investment Research
GL is an Outperformer
Shares of Globe Life have gained 33% in the past year, outperforming its industry, the Finance sector, and the Zacks S&P 500 composite’s growth of 7.4%, 14.7% and 14.8%, respectively.
Image Source: Zacks Investment Research
GL has outperformed its peers, Aflac Incorporated (AFL - Free Report) and Unum Group (UNM - Free Report) , which have risen 8.6% and 5.9%, respectively, in the past year, while AMERISAFE, Inc. (AMSF - Free Report) has lost 25.8% in the same time period.
GL’s Growth Projection Encourages
The Zacks Consensus Estimate for Globe Life’s 2025 earnings per share indicates a year-over-year increase of 17.8%. The consensus estimate for revenues is pegged at $6.03 billion, implying a year-over-year improvement of 4.4%.
The consensus estimate for 2026 earnings per share and revenues indicates an increase of 3.1% and 5.1%, respectively, from the corresponding 2025 estimates.
Target Price Reflects Potential Upside
Based on short-term price targets offered by 13 analysts, the Zacks average price target is $166.69 per share. The average indicates a potential 19.5% upside from the last closing price.
Image Source: Zacks Investment Research
GL’s Return on Capital
GL’s trailing 12-month return on equity is 21.8%, ahead of the industry average of 14.9%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders.
Also, the return on invested capital (ROIC) in the trailing 12 months was 12.9%, better than the industry average of 7.2%. Its ROIC has been increasing over the last few quarters amid capital investment made over the same time frame. This reflects the company’s efficiency in utilizing funds to generate income.
Key Points to Note for 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 drive the top line in the future. Liberty National is likely to 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.
Globe Life expects net life sales to increase around 3% at American Income, around 1% at Liberty National, and nearly 4% at direct-to-consumer in 2025. The company expects Net health sales to remain flat at Liberty National, to increase around 13% at Family Heritage, and around 50% at United American in 2025.
For net life sales, Globe Life expects American Income to have mid-single-digit growth, Liberty National to have high single-digit growth, and direct-to-consumer to have low single-digit growth for 2026. For net health sales, Globe Life expects Liberty National to have high single-digit growth, Family Heritage to have low double-digit growth, and United American to have mid-single-digit growth for 2026.
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 is likely to keep growing, 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 comprise writing basic protection life and supplemental health insurance policies, which generate strong and stable cash flows. For 2025, Globe Life has targeted a consolidated Company Action Level RBC ratio 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 (2017-2024), witnessing a CAGR of 7%.
End Notes
Globe Life’s higher life and health sales, improved invested assets, increased productivity and agent count, strong liquidity position and effective capital deployment make it an attractive stock.
Higher return on capital, impressive dividend history, and solid growth projections should continue to benefit the insurer over the long term. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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GL Stock Near 52-Week High: A Signal for Investors to Hold Tight?
Key Takeaways
Shares of Globe Life Inc. (GL - Free Report) closed at $140.65 on Monday, near its 52-week high of $147.83. This proximity underscores investor confidence. It has the ingredients for further price appreciation. The stock is trading above the 50-day and 200-day simple moving averages (SMA) of $133.94 and $129.85, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
Earnings of Globe Life grew 13.3% in the last five years, better than the industry average of 5.5%. GL has a solid surprise history. The stock has a solid track record of beating earnings estimates in three of the last four quarters while missing in one, the average being 0.65%.
Image Source: Zacks Investment Research
GL is an Outperformer
Shares of Globe Life have gained 33% in the past year, outperforming its industry, the Finance sector, and the Zacks S&P 500 composite’s growth of 7.4%, 14.7% and 14.8%, respectively.
Image Source: Zacks Investment Research
GL has outperformed its peers, Aflac Incorporated (AFL - Free Report) and Unum Group (UNM - Free Report) , which have risen 8.6% and 5.9%, respectively, in the past year, while AMERISAFE, Inc. (AMSF - Free Report) has lost 25.8% in the same time period.
GL’s Growth Projection Encourages
The Zacks Consensus Estimate for Globe Life’s 2025 earnings per share indicates a year-over-year increase of 17.8%. The consensus estimate for revenues is pegged at $6.03 billion, implying a year-over-year improvement of 4.4%.
The consensus estimate for 2026 earnings per share and revenues indicates an increase of 3.1% and 5.1%, respectively, from the corresponding 2025 estimates.
Target Price Reflects Potential Upside
Based on short-term price targets offered by 13 analysts, the Zacks average price target is $166.69 per share. The average indicates a potential 19.5% upside from the last closing price.
Image Source: Zacks Investment Research
GL’s Return on Capital
GL’s trailing 12-month return on equity is 21.8%, ahead of the industry average of 14.9%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders.
Also, the return on invested capital (ROIC) in the trailing 12 months was 12.9%, better than the industry average of 7.2%. Its ROIC has been increasing over the last few quarters amid capital investment made over the same time frame. This reflects the company’s efficiency in utilizing funds to generate income.
Key Points to Note for 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 drive the top line in the future. Liberty National is likely to 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.
Globe Life expects net life sales to increase around 3% at American Income, around 1% at Liberty National, and nearly 4% at direct-to-consumer in 2025. The company expects Net health sales to remain flat at Liberty National, to increase around 13% at Family Heritage, and around 50% at United American in 2025.
For net life sales, Globe Life expects American Income to have mid-single-digit growth, Liberty National to have high single-digit growth, and direct-to-consumer to have low single-digit growth for 2026. For net health sales, Globe Life expects Liberty National to have high single-digit growth, Family Heritage to have low double-digit growth, and United American to have mid-single-digit growth for 2026.
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 is likely to keep growing, 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 comprise writing basic protection life and supplemental health insurance policies, which generate strong and stable cash flows. For 2025, Globe Life has targeted a consolidated Company Action Level RBC ratio 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 (2017-2024), witnessing a CAGR of 7%.
End Notes
Globe Life’s higher life and health sales, improved invested assets, increased productivity and agent count, strong liquidity position and effective capital deployment make it an attractive stock.
Higher return on capital, impressive dividend history, and solid growth projections should continue to benefit the insurer over the long term. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.