Shares of Globe Life Inc. GL have gained 20% in the past year, outperforming its industry, the Finance sector and the Zacks S&P 500 composite’s growth of 10.4%, 7% and 14.8%, respectively.
The insurer has a market capitalization of $13.23 billion. The average volume of shares traded in the last three months was 0.5 million.
Image Source: Zacks Investment Research
GL Shares are Affordable
Globe Life shares are trading at a discount compared to the industry. Its forward price-to-earnings multiple of 10.58X is lower than the industry average of 13.29X, the Finance sector’s 16.29X and the Zacks S&P 500 Composite’s 19.54X. Also, it has a Value Score of B.
Shares of other insurers like Unum Group UNM and AMERISAFE, Inc. AMSF are also trading at a discount to the industry average, while Aflac Incorporated AFL is trading at a multiple.
Image Source: Zacks Investment Research
GL Trading Above 200-Day Moving Average
Shares of Globe Life closed at $172.26 on Thursday and are trading above the 200-day simple moving average (SMA) of $155.35, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
GL’s Growth Projection Encourages
The Zacks Consensus Estimate for Globe Life’s 2026 earnings per share indicates a year-over-year increase of 8.2%. The consensus estimate for revenues is pegged at $6.40 billion, implying a year-over-year improvement of 6.3%.
The consensus estimate for 2027 earnings per share and revenues indicates an increase of 5.1% and 6%, respectively, from the corresponding 2026 estimates.
Target Price Reflects Potential Upside
Based on short-term price targets offered by 13 analysts, the Zacks average price target is $192.46 per share. The average indicates a potential 11.3% upside from the last closing price.
Image Source: Zacks Investment Research
GL’s Return on Capital
GL’s trailing 12-month return on equity is 20.5%, ahead of the industry average of 13.3%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders’ equity.
Also, return on invested capital (ROIC) in the trailing 12 months was 12.2%, above the industry average of 6.3%. Its ROIC has increased over the last few quarters amid capital investment during the same period. This reflects the company’s efficiency in utilizing funds to generate income.
Key Points to Note for Globe Life
Globe Life continues to strengthen its growth outlook through a combination of premium expansion, technology adoption, distribution investments, rising investment income and shareholder-friendly capital deployment. The company’s diversified product portfolio and multiple distribution channels position it to capture opportunities across life and supplemental health markets.
Globe Life’s premium growth remains a key earnings driver. Management expects 2026 total premium revenue to increase 6.5-7%, with health premiums projected to grow 14-16%. Medicare Supplement rate increases and stronger sales at United American and Family Heritage are supporting health growth. Approximately $65 million of additional 2026 premium is expected from approved rate increases on individual Medicare Supplement policies.
Technology investments could further enhance profitability. Globe Life is expanding artificial intelligence across applications, customer service and claims processing. Broader AI adoption is expected to improve underwriting, sales productivity and customer engagement while gradually lowering administrative costs.
Distribution expansion is another important growth lever. Management expects mid-single-digit growth in agent count and life sales at American Income in the second half. Liberty National and Family Heritage also posted agent-count growth, supporting future premium generation.
Globe Life’s solid capital position enables meaningful shareholder returns. The company repurchased 1.1 million shares for $175 million in the second quarter and expects 2026 buybacks of $670-$700 million, alongside approximately $95 million of dividends.
Conclusion
Overall, Globe Life’s growth prospects remain supported by steady premium expansion, particularly in supplemental health, alongside investments in technology and distribution. Rising AI adoption could improve operating efficiency and support underwriting and sales productivity, while favorable investment yields continue to bolster earnings.
With multiple growth drivers spanning premiums, productivity, investment income and capital returns, Globe Life is positioned to sustain earnings momentum over the longer term.
Higher return on capital, affordability of shares, and solid growth projections should continue to benefit the insurer over the long term. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners UpWant 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
Globe Life Inc. (GL): Free Stock Analysis Report
Aflac Incorporated (AFL): Free Stock Analysis Report
Unum Group (UNM): Free Stock Analysis Report
AMERISAFE, Inc. (AMSF): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).