Globe Life did an about-face last quarter, reporting a 24% surge in profits after eking out a miserly 3% gain the prior quarter. On Wednesday, Globe Life stock topped an important performance benchmark, seeing its Relative Strength (RS) Rating jump into the 80-plus percentile with an improvement to 83, up from 77 the day before.
The RS Rating upgrade means Globe Life stock bested 83% of all stocks for price performance over the past year. It comes after the company ran right past the buy point of a flat base this week. It also confirms it's in a stronger position than other stocks. Market research shows that the best stocks typically have an RS Rating north of 80 as they begin their biggest price moves.
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Globe Life Stock In Buy Range Of Flat Base
McKinney, Texas-based Globe Life, in the greater Dallas/Ft. Worth area, sells individual life and supplemental health insurance, including for juveniles and older people.
Globe Life stock moved into a buy range after moving past a 115.86 buy point in a flat base on Oct. 17. A proper buying range is up to 5% above the initial entry — up to about 121.65 in this case. Once a stock moves above that range, it's best to hold off investing and wait for it to set up another buying opportunity.
Globe Life closed Wednesday at 116.37, virtually unchanged for the day.
Last Sunday Globe Life reported that third quarter earnings grew 24% to $2.72 per share, on a 7% rise in revenue to $1.38 billion. Its growth is steady though a bit erratic. For example, over the past four quarters its earnings grew 32%, 4%, 3% and then 24%.
Among its other key ratings, Globe Life stock has a premier 95 Composite Rating, putting it in the top 5% of stocks overall. IBD's Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Other Ratings Also Shine
Additionally, it carries an 89 Earnings Per Share Rating out of 99 and a B- Accumulation/Distribution Rating. The B- A/D Rating shows that institutional investors like ETFs and mutual funds are buying more of its shares than selling.
Globe Life stock holds the No. 3 rank among its peers in the 20-stock Insurance-Life industry group, according to IBD Stock Checkup. Primerica and AmerEquity are also among the group's highest-rated stocks. The group as a whole has a healthy 98 Composite Rating.
When looking for the best stocks to buy and watch, relative price strength offers a clue to whether the stock is worth buying or adding to a watchlist.
IBD's proprietary Relative Strength Rating tracks price movement with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the trailing 52 weeks stacks up against all the other stocks in our database.
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