Why Federated Hermes (FHI) is a Top Value Stock for the Long-Term
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Headquartered in Pittsburgh, PA, Federated Hermes, Inc. is a global asset manager with $829.6 billion in AUM as of Dec. 31, 2024. It was formed from the merger between Federated Investors and Hermes Investment Management.
FHI boasts a Value Style Score of B and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Federated Hermes are trading at a forward earnings multiple of 10.2X, as well as a PEG Ratio of 0.9, a Price/Cash Flow ratio of 12.2X, and a Price/Sales ratio of 2.1X.
A company's earnings performance is important for value investors as well. For fiscal 2025, four analysts revised their earnings estimate higher in the last 60 days for FHI, while the Zacks Consensus Estimate has increased $0.16 to $4.22 per share. FHI also holds an average earnings surprise of 13.1%.
FHI should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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Federated Hermes, Inc. (FHI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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