We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing Globe Life (GL) Right Now?
Read MoreHide Full Article
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Globe Life (GL - Free Report) . GL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.85. This compares to its industry's average Forward P/E of 14.03. GL's Forward P/E has been as high as 11.53 and as low as 4.15, with a median of 10.08, all within the past year.
Investors should also recognize that GL has a P/B ratio of 1.66. The P/B is a method of comparing a stock's market value to 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 2.35. Over the past 12 months, GL's P/B has been as high as 2.77 and as low as 0.92, with a median of 2.44.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GL has a P/S ratio of 1.48. This compares to its industry's average P/S of 1.8.
Finally, investors should note that GL has a P/CF ratio of 5.95. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. GL's P/CF compares to its industry's average P/CF of 13.30. Over the past 52 weeks, GL's P/CF has been as high as 9.08 and as low as 3.39, with a median of 7.32.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing Globe Life (GL) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Globe Life (GL - Free Report) . GL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.85. This compares to its industry's average Forward P/E of 14.03. GL's Forward P/E has been as high as 11.53 and as low as 4.15, with a median of 10.08, all within the past year.
Investors should also recognize that GL has a P/B ratio of 1.66. The P/B is a method of comparing a stock's market value to 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 2.35. Over the past 12 months, GL's P/B has been as high as 2.77 and as low as 0.92, with a median of 2.44.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GL has a P/S ratio of 1.48. This compares to its industry's average P/S of 1.8.
Finally, investors should note that GL has a P/CF ratio of 5.95. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. GL's P/CF compares to its industry's average P/CF of 13.30. Over the past 52 weeks, GL's P/CF has been as high as 9.08 and as low as 3.39, with a median of 7.32.
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.