Trading Near 52-Week High, Why GL Stock is Still Worth Buying Now

Shares of Globe Life Inc. GL closed at $130.53 on Wednesday, near its 52-week high of $131.91. 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 $123.24 and $106.07, 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 6.5%. 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 4.36%.GL is an OutperformerShares of Globe Life have gained 17% year to date against its industry and the Zacks S&P 500 composite’s decline of 5.3% and 2.2%, respectively. It outperformed the Finance sector’s growth of 4.3%.GL Outperformed Industry, Sector, S&PImage Source: Zacks Investment ResearchGL’s Growth Projection EncouragesThe Zacks Consensus Estimate for Globe Life’s 2025 earnings per share indicates a year-over-year increase of 12.1%. The consensus estimate for revenues is pegged at $6.08 billion, implying a year-over-year improvement of 5.1%. The consensus estimate for 2026 earnings per share and revenues indicates an increase of 8.5% and 5.1%, respectively, from the corresponding 2025 estimates. Positive Analyst Sentiment Instills Confidence in GLSix of the seven analysts covering the stock have raised estimates for 2025 and four have raised the same for 2026 over the past 60 days. Thus, the Zacks Consensus Estimate for 2025 and 2026 moved 2.3% and 0.9% north, respectively, in the last 60 days.GL’s Return on CapitalGL’s trailing 12-month return on equity is 21.9%, ahead of the industry average of 17.2%. 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 13.1%, better than the industry average of 4.7%. 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.GL Shares are Undervalued Globe Life shares are trading at a price-to-book multiple of 9.22, lower than the industry average of 14.84. Its pricing, at a discount to the industry average, gives a better entry point to investors. Also, it has a Value Score of A. Shares of other players from the same space, such as Guild Holdings Company GHLD, Marex Group PLC MRX and PRA Group, Inc. PRAA, are also trading at a discount to the industry average.ConclusionGlobe 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. Globe Life should benefit from higher return on capital and favorable growth estimates. Coupled with the positives and the affordability of the stock, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PRA Group, Inc. (PRAA): Free Stock Analysis Report Marex Group PLC (MRX): Free Stock Analysis Report Globe Life Inc. (GL): Free Stock Analysis Report Guild Holdings Company (GHLD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks