Should You Keep GL Stock in Your Portfolio? Strong Fundamentals Meet Price Momentum

Globe Life Inc. GL closed at $140.65 on Monday, trading comfortably near its 52-week high of $147.83. This positioning reflects robust investor appetite. The stock commands positions above both its 50-day simple moving average of $133.94 and 200-day SMA of $129.85, signaling sustained upward trajectory in price action.

The Growth Story That’s Driving GL Forward

What’s particularly compelling about GL’s outlook is the earnings narrative. Over the past five years, Globe Life’s earnings have expanded at 13.3%—considerably outpacing the broader insurance sector’s 5.5% growth rate. The company has demonstrated reliability in meeting market expectations, with three consecutive quarters of positive earnings surprises over the last four quarters, averaging a 0.65% beat rate.

Looking ahead, the numbers become even more enticing. Zacks Consensus Estimate pegs 2025 earnings per share growth at 17.8% year-over-year, with revenues projected at $6.03 billion, up 4.4% from prior year levels. For 2026, the trajectory remains constructive, with anticipated earnings per share and revenue growth of 3.1% and 5.1% respectively compared to 2025 figures.

Performance That Speaks Volumes

GL’s investment case is reinforced by its recent market performance. Over the past 12 months, shares have appreciated 33%, substantially outpacing the Finance sector’s 14.7% gain and the broader S&P 500 composite’s 14.8% advance. When stacked against direct competitors, the outperformance becomes more pronounced: Aflac Incorporated AFL returned 8.6% and Unum Group UNM gained 5.9%, while AMERISAFE, Inc. AMSF declined 25.8% in the same period.

Analysts aren’t sitting on the sidelines either. Based on 13 analyst price targets, the average valuation sits at $166.69 per share, implying 19.5% upside potential from current levels.

Capital Efficiency That Impresses

Perhaps most telling is how effectively Globe Life deploys shareholder capital. The trailing 12-month return on equity stands at 21.8%, well ahead of the 14.9% industry median. More impressively, return on invested capital (ROIC) reached 12.9% over the same period, crushing the 7.2% industry benchmark. ROIC expansion over recent quarters underscores management’s disciplined capital allocation amid ongoing investment initiatives.

The Operational Drivers

Globe Life’s revenue momentum flows from multiple channels. Premium expansion across Life Insurance and Health Insurance segments, coupled with net investment income, continues to fuel the top line. The American Income and Liberty National divisions are positioned as growth anchors, with Liberty National benefiting from improving agent productivity and headcount.

For 2025, management has laid out specific targets: American Income net life sales projected to rise ~3%, Liberty National ~1%, and direct-to-consumer channels ~4%. On the health side, Liberty National should hold flat, Family Heritage climb ~13%, and United American surge ~50%. 2026 expectations call for American Income’s mid-single-digit growth, Liberty National’s high single-digit expansion in both segments, plus low double-digit gains for Family Heritage and mid-single-digit increases for United American.

Net investment income represents a secondary but meaningful growth vector. As invested assets improve and rates on fresh capital deployment remain elevated, this metric should continue its upward trajectory.

Capital Position and Shareholder Returns

GL maintains fortress-like liquidity with reliable cash generation from its core business—writing foundational life protection and supplemental health coverage. The company targets a 300-320% consolidated Company Action Level RBC ratio for 2025, reflecting comfortable capital adequacy.

This strength enables active shareholder distributions. Globe Life has increased its dividend for eight consecutive years (2017-2024) at a 7% compound annual growth rate, demonstrating commitment to returning capital.

The Bottom Line

Globe Life ticks multiple boxes for income-focused and growth-oriented investors alike: expanding life and health sales, deepening invested asset bases, improving productivity metrics, and fortress-level liquidity. The combination of capital-efficient operations, consistent dividend growth, and solid earnings projections presents a compelling risk-reward profile. Currently trading at Zacks Rank #3 (Hold), GL merits consideration for those seeking exposure to the insurance sector’s structural tailwinds.