Globe Life Inc. Faces Mixed Results but Analysts Remain Optimistic

Globe Life Inc. (GL), headquartered in McKinney, Texas, specializes in life and supplemental health insurance along with annuities targeted at lower-middle and middle-income families. With a market capitalization of $10.2 billion, the company operates in various segments including life insurance, supplemental health insurance, and Annuities and Investments.

Stock Performance Shows Disparity with Market Trends

Over the past year, Globe Life’s stock has struggled compared to the broader market. GL’s stock declined 1.5% within the last 52 weeks, while the S&P 500 Index surged by 23.5%. However, in the early months of 2025, GL shares rallied by 10.8%, outperforming the S&P 500’s 4% gains thus far this year.

When examining performance against the SPDR S&P Insurance ETF (KIE), Globe Life also underperformed, with KIE gaining 22.3% over the same period. Yet, GL did outperform KIE’s modest 3.2% return in the last 52 weeks.

Quarterly Earnings Reveal Mixed Signals

On February 5, Globe Life’s stock fell over 2.5% following the announcement of its mixed Q4 results. The company saw premium collections increase by 4.5%, reaching $1.2 billion. However, a significant drop in realized gains resulted in overall revenue growth of only 3.6% year-over-year, totaling $1.5 billion, which fell short of analysts’ expectations by 1%. On a positive note, its non-GAAP net operating income rose by 12.1% year-over-year to $3.14 per share, beating consensus estimates by 1.3%. After the initial decline, GL shares rallied 2.9% in the subsequent trading session.

Future Projections and Analyst Sentiment

For the fiscal year 2025, which concludes in December, analysts forecast Globe Life to achieve an 11.8% increase in net operating income, targeting $13.83 per share. While the company has shown a mixed track record with earnings surprises—missing expectations once and beating them three times over the past four quarters—analysts remain hopeful.

The consensus rating among the 12 analysts covering the stock is a “Moderate Buy,” based on seven “Strong Buy,” one “Moderate Buy,” and four “Hold” ratings. This outlook is slightly more positive than two months ago when only six analysts offered “Strong Buy” recommendations.

Price Targets Indicate Potential Upside

On January 23, BMO Capital analyst Jack Matten began coverage of GL with a “Market Perform” rating and set a price target of $114. The mean price target for GL stands at $136.50, suggesting a 10.5% increase from current levels, while the highest target at $188 points to an impressive 52.2% upside.

On the date of publication, Aditya Sarawgi 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.

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