Globe Life (GL) shares rallied 3.3% in the last trading session to close at $109.39. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2.8% loss over the past four weeks.
Globe Life has been witnessing a positive trend in revenues, driven by premium growth in its Life Insurance and Health Insurance segments and net investment income.
GL’s expansion initiatives to capture heavily populated and less penetrated areas should drive growth in the future. Net life sales, as well as net health sales, are expected to grow in the mid-teens for Liberty National.
The company has maintained a strong liquidity position with sufficient cash-generation capabilities. A strong capital position enables Globe Life to enhance its shareholder value via share buybacks and dividend payouts.
This life and health insurance company is expected to post quarterly earnings of $3.10 per share in its upcoming report, which represents a year-over-year change of +10.7%. Revenues are expected to be $1.48 billion, up 5.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Globe Life, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on GL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Globe Life belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Inter & Co. Inc. (INTR), closed the last trading session 7.9% higher at $4.36. Over the past month, INTR has returned -27.1%.
For Inter & Co. Inc. , the consensus EPS estimate for the upcoming report has changed +21.1% over the past month to $0.12. This represents a change of +71.4% from what the company reported a year ago. Inter & Co. Inc. currently has a Zacks Rank of #3 (Hold).
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