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Are Investors Undervaluing Globe Life (GL) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 company value investors might notice is Globe Life (GL - Free Report) . GL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.25, while its industry has an average P/E of 14.07. Over the past year, GL's Forward P/E has been as high as 11.53 and as low as 4.15, with a median of 9.89.
Another notable valuation metric for GL is its P/B ratio of 1.81. The P/B ratio pits a stock's market value against 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 2.49. Over the past 12 months, GL's P/B has been as high as 2.69 and as low as 0.92, with a median of 2.35.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GL has a P/S ratio of 1.67. This compares to its industry's average P/S of 1.92.
Finally, we should also recognize that GL has a P/CF ratio of 6.75. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.02. Over the past year, GL's P/CF has been as high as 9.08 and as low as 3.39, with a median of 7.05.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Globe Life is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GL feels like a great value stock at the moment.
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Are Investors Undervaluing Globe Life (GL) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 company value investors might notice is Globe Life (GL - Free Report) . GL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.25, while its industry has an average P/E of 14.07. Over the past year, GL's Forward P/E has been as high as 11.53 and as low as 4.15, with a median of 9.89.
Another notable valuation metric for GL is its P/B ratio of 1.81. The P/B ratio pits a stock's market value against 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 2.49. Over the past 12 months, GL's P/B has been as high as 2.69 and as low as 0.92, with a median of 2.35.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GL has a P/S ratio of 1.67. This compares to its industry's average P/S of 1.92.
Finally, we should also recognize that GL has a P/CF ratio of 6.75. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.02. Over the past year, GL's P/CF has been as high as 9.08 and as low as 3.39, with a median of 7.05.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Globe Life is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GL feels like a great value stock at the moment.