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.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Federated Hermes (FHI)
Headquartered in Pittsburgh, PA, Federated Hermes, Inc. is a global asset manager, with $757.6 billion in AUM, as of Dec 31, 2023. It was formed from the merger between Federated Investors and Hermes Investment Management.
FHI is a Zacks Rank #1 (Strong Buy) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 9.7X for the current fiscal year compared to the Financial - Investment Management industry's P/E of 10.8X. Additionally, FHI has a PEG Ratio of 0.8 and a Price/Cash Flow ratio of 10.5X. Value investors should also note FHI's Price/Sales ratio of 1.9X.
A company's earnings performance is important for value investors as well. For fiscal 2024, four analysts revised their earnings estimate higher in the last 60 days for FHI, while the Zacks Consensus Estimate has increased $0.18 to $3.64 per share. FHI also holds an average earnings surprise of 6.5%.
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