Since January 2025, Globe Life has been in a holding pattern, posting a small return of 4.6% while floating around $117.60.
Is now the time to buy Globe Life, or should you be careful about including it in your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free.
Why Is Globe Life Not Exciting?
We're swiping left on Globe Life for now. Here are three reasons why there are better opportunities than GL and a stock we'd rather own.
1. Net Premiums Earned Points to Soft Demand
Net premiums earned commands greater market attention due to its reliability and consistency, whereas investment and fee income are often seen as more volatile revenue streams that fluctuate with market conditions.
Globe Life’s net premiums earned has grown at a 4.3% annualized rate over the last two years, worse than the broader insurance industry and in line with its total revenue.
2. Recent EPS Growth Below Our Standards
While long-term earnings trends give us the big picture, we also track EPS over a shorter period because it can provide insight into an emerging theme or development for the business.
Globe Life’s EPS grew at an unimpressive 18.7% compounded annual growth rate over the last two years. On the bright side, this performance was higher than its 4.7% annualized revenue growth and tells us the company became more profitable on a per-share basis as it expanded.
3. Growing BVPS Reflects Strong Asset Base
Book value per share (BVPS) serves as a key indicator of an insurer’s financial stability, reflecting a company’s ability to maintain adequate capital levels and meet its long-term obligations to policyholders.
Although Globe Life’s BVPS increased by a meager 1.3% annually over the last five years, the good news is that its growth has recently accelerated as BVPS grew at an incredible 27.6% annual clip over the past two years (from $40.18 to $65.43 per share).
Final Judgment
Globe Life’s business quality ultimately falls short of our standards. That said, the stock currently trades at 1.6× forward P/B (or $117.60 per share). Investors with a higher risk tolerance might like the company, but we think the potential downside is too great. We're fairly confident there are better investments elsewhere. Let us point you toward a top digital advertising platform riding the creator economy.
Stocks We Like More Than Globe Life
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
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