Global Life Incorporation GL is well-poised for growth backed by higher premiums, strength at distribution channels and strong capital position.
The stock carries a VGM Score of B. VGM Score helps to identify stocks with the most attractive value, best growth and the most promising momentum.
Shares of this Zacks Rank #2 (Buy) have gained 38.4% year to date, outperforming the industry’s ralliy of 21.4%.
Estimates for Global Life have been revised upward over the past 60 days, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for earnings for 2019 and 2020 have moved north by 0.6% and 0.3%, respectively, in the same time frame. The company beat estimates in the trailing four quarters by 1.53%, on average.
American Income Exclusive Agency, the most important distribution channel of Global life, contributes a major share of life premium and net sales. For the first nine months of 2019, this agency has witnessed a persistent increase in the life premiums. The operations at the Direct Response have also witnessed continuous growth in life premiums. The company remains focused on margin expansion instead of increasing sales.
Banking on solid cash flows, the company effectively deploys capital via share buybacks. In the first nine months of 2019, Global Life bought shares worth $273 million. Apart from this, the dividend has been increased at a five-year (2013-2018) CAGR of 4.7%. These endeavors make the stock an attractive pick for yield-seeking investors.
However, increased administrative expenses, pension costs and higher debt level are some of the headwinds plaguing Global Life currently.
The Zacks Consensus Estimate for 2019 earnings per share is pegged at $6.77, indicating an improvement of 10.4% from the year-ago reported figure. The expected long-term earnings growth rate is pegged at 8.1%.
Other Stocks to Consider
Investors interested in the finance sector can also take a look at some other top-ranked stocks like AXA Equitable Holdings Incorporation EQH, PRA Group, Incorporation PRAA and LendingClub Corporation LC, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AXA Equitable Holdings Incorporation Holdings operates as a diversified financial services company worldwide. The company beat estimates in the trailing four quarters by 12.40%, on average.
PRA Group engages in the purchase, collection, and management of portfolios of nonperforming loans in the Americas and Europe. The company beat estimates in the trailing four quarters by 18.07%, on average.
Lending Club operates an online lending marketplace platform that connects borrowers and investors in the United States. The company beat estimates in the trailing four quarters by 235.00%, on average.
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