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Globe Life Inc. (GL), headquartered in McKinney, Texas, provides various life and supplemental health insurance products, and annuities to lower middle- and middle-income families in the U.S. Valued at $9.2 billion by market cap, the company offers term, whole, and children's life insurance, as well as accidental benefits, mortgage protection, and medicare supplement plans.
Companies worth $2 billion or more are generally described as “mid-cap stocks,” and GL fits right into that category with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the life insurance industry. GL has built a strong reputation for reliability and trustworthiness. With a diverse range of insurance products tailored to different customer requirements and budgets, GL is able to provide competitive pricing while keeping operational costs in check. The company's stable financial standing, fueled by steady revenue streams and sound investment practices, further bolsters its credibility in the industry.
Despite its notable strength, GL slipped 16.7% from its 52-week high of $132, achieved on Feb. 22. Over the past three months, GL stock has gained 3.8%, underperforming the Nasdaq Composite’s ($NASX) 7.1% gains during the same time frame.
In the longer term, shares of GL rose 33.6% over the past six months, outperforming NASX’s six-month gains of 9.9%. However, GL fell 9.7% over the past 52 weeks, underperforming NASX’s solid 29.8% returns over the last year.
However, GL has been trading above its 50-day moving average since late June, with slight fluctuations. The stock is trading above its 200-day moving average since late August.
Globe Life has faced challenges this year following allegations of fraud and misconduct in an April short report, impacting its performance.
On Oct. 23, GL shares closed down marginally after reporting its Q3 results. Its operating EPS of $3.49 exceeded Wall Street expectations of $3.05. The company’s revenue was $1.46 billion, missing Wall Street forecasts of $1.47 billion. GL expects full-year operating EPS to be between $12.20 and $12.40.
In the competitive arena of life insurance, CNO Financial Group, Inc. (CNO) has taken the lead over GL, showing resilience with a 34.1% uptick over the past six months and 33.2% gains over the past 52 weeks.
Wall Street analysts are moderately bullish on GL’s prospects. The stock has a consensus “Moderate Buy” rating from the 11 analysts covering it, and the mean price target of $132.73 suggests a potential upside of 20.7% from current price levels.
