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On Wednesday, JPMorgan analysts increased the price target for Globe Life (NYSE: NYSE:GL) to $145.00 from the previous target of $136.00, while maintaining an Overweight rating on the shares. According to InvestingPro data, the stock currently trades at an attractive P/E ratio of 11x, suggesting potential upside based on the platform’s Fair Value calculations. The firm noted that Globe Life’s stock has more than doubled since its low point in April 2024, which was triggered by short reports and negative regulatory news. Despite this rebound, the stock had underperformed the sector in 2024, with an 8% decline compared to a 25% increase in the group. The company maintains strong fundamentals with a "GREAT" overall financial health score from InvestingPro, supported by a robust 32.7% gross profit margin and consistent dividend payments for 55 consecutive years.
JPMorgan highlighted that earnings per share (EPS) forecasts for Globe Life have risen approximately 10% over the past year, in contrast to the sector’s projections, which have remained relatively flat. Globe Life’s stock has begun to recover in 2025, showing a 17% increase compared to the sector’s 4% rise. Analysts at JPMorgan believe the stock still has potential to further close the gap with its peers.
The firm’s positive outlook is based on the company’s strong fundamental performance. Globe Life has experienced robust recruiting trends, consistent sales growth, improving life insurance margins, and significant share repurchases. These factors have contributed to the company’s better-than-expected business performance, reflected in its 6% revenue growth and impressive return on equity of 22%. InvestingPro subscribers can access 12 additional key insights about Globe Life, including detailed analysis of its growth trajectory and market position.
However, JPMorgan also pointed out that regulatory investigations remain a risk for Globe Life. Nonetheless, analysts believe that these concerns are adequately factored into the stock’s current valuation, which is reflected in its relative multiple. The updated price target suggests that JPMorgan sees continued upside for Globe Life shares in the market, with analyst targets ranging from $115 to $188 per share.
In other recent news, Globe Life Inc. has reported its fourth-quarter 2024 earnings, with earnings per share (EPS) exceeding analyst expectations at $3.14 compared to the forecasted $3.12. The company’s revenue, however, fell slightly short of expectations, coming in at $1.47 billion against the anticipated $1.48 billion. CFRA analyst Catherine Seifert increased the price target for Globe Life shares from $118.00 to $130.00, maintaining a Hold rating, driven by the company’s robust fourth-quarter performance and strong premium growth. Meanwhile, TD Cowen reiterated its Buy rating for Globe Life, maintaining a price target of $168.00, citing positive business trends and management’s optimistic outlook.
Additionally, Globe Life has expanded its board of directors, appointing Matthew J. Adams and Philip M. Jacobs as new independent directors. Both will serve on the Audit Committee, enhancing the company’s governance structure. The company has also been active in share repurchases, buying back 10 million shares in 2024 for a total cost of $946 million. Looking ahead, Globe Life anticipates continued growth, projecting net operating earnings per share between $13.45 and $14.05 for 2025, with expectations of increased life and health premium revenues. These developments reflect Globe Life’s strategic initiatives and financial resilience amidst a dynamic market environment.
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