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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Globe Life (GL - Free Report) . GL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6.51, which compares to its industry's average of 13.54. Over the last 12 months, GL's Forward P/E has been as high as 11.53 and as low as 4.15, with a median of 10.13.
Another notable valuation metric for GL is its P/B ratio of 1.55. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.28. Over the past year, GL's P/B has been as high as 2.77 and as low as 0.92, with a median of 2.49.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GL has a P/S ratio of 1.44. This compares to its industry's average P/S of 1.96.
Finally, investors will want to recognize that GL has a P/CF ratio of 5.98. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. GL's current P/CF looks attractive when compared to its industry's average P/CF of 13.47. Within the past 12 months, GL's P/CF has been as high as 9.08 and as low as 3.39, with a median of 7.19.
Value investors will likely look at more than just these metrics, but the above data helps show that Globe Life is likely undervalued currently. And when considering the strength of its earnings outlook, GL sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Globe Life (GL) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Globe Life (GL - Free Report) . GL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6.51, which compares to its industry's average of 13.54. Over the last 12 months, GL's Forward P/E has been as high as 11.53 and as low as 4.15, with a median of 10.13.
Another notable valuation metric for GL is its P/B ratio of 1.55. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.28. Over the past year, GL's P/B has been as high as 2.77 and as low as 0.92, with a median of 2.49.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GL has a P/S ratio of 1.44. This compares to its industry's average P/S of 1.96.
Finally, investors will want to recognize that GL has a P/CF ratio of 5.98. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. GL's current P/CF looks attractive when compared to its industry's average P/CF of 13.47. Within the past 12 months, GL's P/CF has been as high as 9.08 and as low as 3.39, with a median of 7.19.
Value investors will likely look at more than just these metrics, but the above data helps show that Globe Life is likely undervalued currently. And when considering the strength of its earnings outlook, GL sticks out at as one of the market's strongest value stocks.