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Globe Life Inc. (GL), headquartered in McKinney, Texas, is a leader in providing life and supplemental health insurance solutions. With a market cap of $9.4 billion, Globe Life specializes in offering affordable, reliable insurance products designed to protect individuals and families.
Companies valued at less than $10 billion are generally considered “mid-cap” stocks, and Globe Life fits this category with its significant presence in the insurance industry. Globe Life's leadership in providing affordable life and supplemental health insurance solutions, along with its strong focus on customer service, underscores its solid market position and long-term growth potential in the financial services sector.
GL shares are trading 20.9% below their 52-week high of $132, which they hit on Sep. 29, 2023. The stock has gained 27% over the past three months, outperforming the broader S&P 500 Index ($SPX), which has gained 4.7% over the same time frame.
In the longer term, GL is down 14.2% on a YTD basis, and the shares have declined by 4.6% over the past 52 weeks. In comparison, the SPX has gained 20.3% in 2024 and rallied 34.2% over the past year.
To confirm its bullish trend, GL has been trading above its 50-day moving average since early July and the 200-day moving average since mid-September.
On Sept. 27, Globe Life fell by over 4% after the company announced that the Equal Employment Opportunity Commission had conducted an investigation into charges of potential discrimination filed against it.
GL rose marginally in the trading session following the release of its Q2 earnings on Jul. 24. The company surpassed earnings estimates but matched revenue estimates. The company anticipates full-year earnings from $11.80 to $12.10 per share.
Highlighting the contrast in performance, GL’s competitor, CNO Financial Group, Inc. (CNO), has outperformed the stock. CNO has gained 22.8% on a YTD basis.
Given the recent strong price performance, analysts are moderately optimistic about GL's prospects. The stock has a consensus rating of "Moderate Buy" from nine analysts in coverage. The mean price target is $109.90, suggesting a premium of 5.3% to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
