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Investing.com - CFRA upgraded Globe Life (NYSE:GL) to Buy from Hold on Friday, raising its price target to $155.00 from $130.00 following the favorable resolution of an SEC investigation. The stock, currently trading at $137.40, has shown strong momentum with a P/E ratio of 10.7x and a remarkable 49% return over the past year.
The research firm cited the SEC’s decision to conclude its investigation into fraud allegations without taking any enforcement actions as a key catalyst for potential multiple expansion of Globe Life shares. According to InvestingPro analysis, Globe Life maintains a "GREAT" overall financial health score of 3.2 out of 4, with particularly strong marks in profitability and price momentum.
CFRA also raised its 2025 operating earnings per share estimate by $0.95 to $14.45 after management guided estimates higher on expected reserve releases in the third and fourth quarters amid improved mortality and underwriting claim trends.
The firm increased its 2026 operating EPS estimate by $1.00 to $15.50, noting that Globe Life’s current share price represents a valuation of 9.1 times CFRA’s 2025 EPS estimate and 8.5 times its 2026 projection.
Globe Life’s success in expanding its agent base, which rose 6% sequentially in the second quarter, was highlighted as another positive factor supporting the upgraded rating and higher price target.
In other recent news, Globe Life Inc. released its financial results for the second quarter of 2025, presenting a mixed performance. The company reported earnings per share (EPS) of $3.27, slightly exceeding the forecast of $3.25. However, Globe Life’s revenue fell short, reaching $1.48 billion compared to the anticipated $1.51 billion. Despite this revenue miss, the stock experienced a notable increase, indicating positive investor sentiment. These developments are part of the company’s ongoing financial narrative. Investors and analysts continue to monitor Globe Life’s performance closely. The company’s ability to surpass EPS expectations while facing revenue challenges draws attention to its operational dynamics.
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