10 Best Undervalued Stocks To Buy Now

9. Globe Life Inc. (NYSE:GL)

Forward PE as of June 24: 7.1

Number of Hedge Fund Holders: 38

Globe Life Inc. (NYSE:GL) is a provider of many life and supplemental health insurance products, and annuities and it runs through Life Insurance, Supplemental Health Insurance, Annuities, and Investments segments. It takes the seventh spot on our list of best-undervalued stocks.

On April 11, Globe Life’s shares dropped by nearly 54% in one day when Fuzzy Panda Research published a report alleging that the company was involved in insurance fraud. However, the company’s response to the recent allegations has been proactive and transparent. The company immediately addressed the accusations from the Fuzzy Panda’s report and emphasized that they were misleading and pledged to provide a comprehensive answer. The initiation of an informal SEC inquiry and internal audits reflected management’s commitment to upholding governance standards and maintaining investor trust.

Nevertheless, this sudden drop in shares has created a probability of a very attractive entry point for investors as Globe Life is trading at an earnings multiple of slightly over 7x its 2024 earnings, compared to the life insurance industry’s average PE ratio of 12.9x. Since the massive sell-off, the company’s share price has recovered by over 70% as of June 24, which shows that the company is gaining back some investor confidence. Based on the consensus estimates of 11 analysts, the company stock has an upside of over 20% from its current levels.

In Q1, 38 hedge funds had investments in Globe Life Inc. (NYSE:GL), with positions worth $383.830 million.