/Globe%20Life%20Inc%20logo%20on%20phone-by%20rafapress%20via%20Shutterstock.jpg)
Globe Life Inc. (GL), headquartered in McKinney, Texas, is a leading provider of life and health insurance products. The company offers a wide range of insurance solutions, including term life, whole life, and supplemental health insurance, with a focus on delivering affordable coverage to individuals and families. With a market capitalization of $11.32 billion, the company's operations are marked by a commitment to innovation, strategic acquisitions, and efficient service delivery, making it a significant player in the insurance industry.
While the company faced regulatory headwinds in the form of investigations, its stock price action remained strong over the past 52 weeks, posting a gain of 49.2%, outperforming the broader S&P 500 Index ($SPX), which has gained 19% over the same period. The stock is also up 24.6% year-to-date (YTD), while the broader index has gained approximately 10%.
Zooming in further, Globe Life’s shares have also outperformed the sector-specific ETF. The Financial Select Sector SPDR Fund (XLF) has gained 22.7% over the past 52 weeks and 9.3% YTD.
The company’s outperformance can be attributed to positive industry dynamics and robust earnings. Globe Life’s stock reached a 52-week high of $144 on July 31, after it was revealed that both the Department of Justice and the SEC investigations on the company had concluded. The investigations focused on sales practices and uncertainties surrounding the company’s Health segment earnings.
On July 23, Globe Life released its second-quarter earnings, which sparked a more than 5% surge in its shares the following trading session. While the company’s topline of $1.48 billion fell short of Wall Street forecasts, its net operating income increased by 10.1% year-over-year (YOY) to $3.27 per share and was also higher than the $3.25 per share. Globe Life also repurchased 1.9 million shares of its common stock for $226 million during the quarter.
For the current year, ending in December 2025, analysts expect a 15.8% YOY growth in its EPS to $14.32 on a diluted basis. The company has a mixed history of surpassing consensus estimates, topping them in three of the trailing four quarters and missing them on one occasion.
Among the 13 Wall Street analysts covering Globe Life’s stock, the consensus is a “Strong Buy.” That’s based on nine “Strong Buy” ratings, two “Moderate Buy” ratings, and two “Holds.” The current configuration of the ratings also appears more bullish than it was a month ago, when the stock had only seven “Strong Buy” ratings, compared to nine.
In a significant upgrade this month, Morgan Stanley analysts turned bullish on the stock, adjusting their rating on Globe Life from “Equalweight” to “Overweight.” The investment firm also raised the price target on the stock from $135 to $166. This was a result of the DoJ and SEC investigations concluding, which, as Morgan Stanley analysts believe, removes considerable uncertainty surrounding the company.
Globe Life’s mean price target of $159.77 indicates a premium of 14.9% from the current market prices. The Street-high price target of $188 implies a potential upside of 35.3%.
On the date of publication, Anushka Mukherjee 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.
