Want Double-Digit Gains From Insurance Stocks? Morgan Stanley Suggests 2 Names to Consider
Morgan Stanley's Bob Huang identifies Globe Life (GL) and Aon (AON) as insurance stocks with potential double-digit gains. GL reported 7.4% revenue growth in 2Q26, with Huang setting a $208 price target (21% upside). AON missed revenue estimates but beat EPS, with Huang noting steady organic growth. Both stocks have dividends and share buyback programs.
How this was made
The 30-second read
Why it matters
Earnings beats and dividend continuity provide fresh catalysts for both Globe Life and Aon, supporting short‑term bullish positions.
Market read
The article introduces fresh 2Q26 earnings data and a new $2.5B buyback for Globe Life, offering actionable insight for traders in the insurance sector.
What to watch
Potential headwinds from health insurance margins and macro interest rate environment.
Background
Morgan Stanley analysts highlight two insurance stocks as having double‑digit upside based on recent earnings beats and buyback programs.
Ticker impact
Globe Life reported 2Q26 revenue of $1.59B (+7.4% YoY) and EPS $3.65, beating estimates, and announced a $2.5B share repurchase authorization.
Potential price rise of 10-15% as investors price in earnings beat and buyback.
Earnings beat, dividend continuation, and sizable buyback provide clear catalysts.
Aon posted 2Q26 revenue of $4.25B (+2% YoY) and adjusted EPS $3.81, beating expectations by a penny, while maintaining a reliable dividend.
Potential modest price gain of 5-8% as market digests beat and steady dividend.
Small beat and steady dividend provide limited but positive impetus.
Market effects
Positive earnings may lift broader insurance sector sentiment.
U.S. insurance stocks could see modest gains.
Limited to U.S. market; no immediate global effect.
Counterpoint
If earnings guidance is lowered in upcoming quarters, current upside may be overstated.
Key entities
- companyGlobe Life
U.S. life and health insurer (ticker GL).
- companyAon plc
Global risk, retirement and health solutions provider (ticker AON).
