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Should Value Investors Buy Globe Life (GL) Stock?

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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.

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 holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 7.59, while its industry has an average P/E of 13.51. 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 9.96.

Investors should also recognize that GL has a P/B ratio of 1.65. Investors use the P/B ratio to look at a stock's market value versus 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 2.26. Over the past year, GL's P/B has been as high as 2.72 and as low as 0.92, with a median of 2.41.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 1.54. This compares to its industry's average P/S of 1.87.

Finally, we should also recognize that GL has a P/CF ratio of 6.16. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. GL's P/CF compares to its industry's average P/CF of 13.39. 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 7.27.

These are only a few of the key metrics included in Globe Life's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GL looks like an impressive value stock at the moment.


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