[Q2 2025 Earnings Overview](index=1&type=section&id=Q2%202025%20Earnings%20Overview) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Federated Hermes reported a record **$845.7 billion** in assets under management for Q2 2025. Earnings per share surged to **$1.16** from **$0.20** in the prior-year quarter, primarily due to the absence of a significant non-cash impairment charge that impacted the Q2 2024 results. The company also declared a quarterly dividend and authorized a new share repurchase program Financial Metric Comparison | Financial Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **EPS (diluted)** | $1.16 | $0.20 | +480% | | **Net Income** | $91.0 million | $21.0 million | +333% | Assets Under Management (AUM) Overview | Assets Under Management (AUM) | June 30, 2025 | June 30, 2024 | March 31, 2025 | | :--- | :--- | :--- | :--- | | **Total Managed Assets** | $845.7 billion | $782.7 billion | $839.8 billion | | **YoY Change** | +$63.0 billion (+8%) | | | | **QoQ Change** | +$5.9 billion (+1%) | | | - The Board of Directors declared a dividend of **$0.34 per share** and authorized a new share repurchase program for up to **5 million shares** of class B common stock[4](index=4&type=chunk) [Business and Operational Highlights](index=1&type=section&id=Business%20and%20Operational%20Highlights) The company experienced strong investor interest in its MDT equity and alternative quantitative investment solutions. Demand was also high for microshort and ultrashort funds, reflecting a focus on capital preservation and liquidity. In terms of capital return, the company repurchased **$64.5 million** of its stock during the quarter - CEO J. Christopher Donahue noted continued interest in the company's MDT equity and alternative quantitative investment solutions, which utilize a disciplined, repeatable process[4](index=4&type=chunk) - Demand for microshort and ultrashort funds was driven by investors seeking capital preservation, liquidity, and higher yields than money market strategies[4](index=4&type=chunk) - During Q2 2025, the company purchased **1,547,182 shares** of its class B common stock for **$64.5 million**[4](index=4&type=chunk) [Assets Under Management (AUM) Analysis](index=1&type=section&id=Assets%20Under%20Management%20(AUM)%20Analysis) Total AUM reached a record **$845.7 billion**, marking an **8%** increase year-over-year. Growth was observed across all major asset classes, with equity assets showing the strongest percentage growth at **14%** YoY. Money market assets remain the largest component, increasing **8%** YoY AUM by Asset Class | Asset Class | AUM at June 30, 2025 | YoY Change | QoQ Change | | :--- | :--- | :--- | :--- | | **Equity** | $89.0 billion | +14% | +10% | | **Fixed-Income** | $98.7 billion | +4% | -1% | | **Alternative/Private Markets** | $20.7 billion | +3% | +7% | | **Money Market** | $634.4 billion | +8% | -0.4% | | **Total Managed Assets** | **$845.7 billion** | **+8%** | **+1%** | [Equity Assets](index=1&type=section&id=Equity%20Assets) Equity assets increased **14%** year-over-year to **$89.0 billion**. This growth was supported by strong net sales in various MDT strategy funds, including the MDT Mid Cap Growth Fund and MDT All Cap Core Fund - Equity assets stood at **$89.0 billion** at **June 30, 2025**, up **14%** from the prior year and **10%** from the prior quarter[5](index=5&type=chunk) - Top-selling equity funds on a net basis included Federated Hermes MDT Mid Cap Growth Fund, Federated Hermes MDT Mid Cap Growth Collective Investment Fund, and Federated Hermes MDT All Cap Core Fund[5](index=5&type=chunk) [Fixed-Income Assets](index=2&type=section&id=Fixed-Income%20Assets) Fixed-income assets grew **4%** year-over-year to **$98.7 billion**. Top-selling products in this category included microshort and ultrashort bond funds, indicating investor demand for shorter-duration strategies - Fixed-income assets were **$98.7 billion** at **June 30, 2025**, up **4%** from the prior year but down slightly from the previous quarter[7](index=7&type=chunk) - Top-selling fixed-income funds included the Federated Hermes Conservative Municipal Microshort Fund and the Federated Hermes Ultrashort Bond Fund[7](index=7&type=chunk) [Alternative/Private Markets Assets](index=2&type=section&id=Alternative%2FPrivate%20Markets%20Assets) Alternative and private markets assets saw modest growth, increasing **3%** year-over-year to **$20.7 billion** as of **June 30, 2025** - Alternative/private markets assets reached **$20.7 billion**, up **3%** from **June 30, 2024**, and up **7%** from **March 31, 2025**[8](index=8&type=chunk) [Money Market Assets](index=2&type=section&id=Money%20Market%20Assets) Money market assets, the company's largest segment, grew **8%** year-over-year to **$634.4 billion**. Within this, money market fund assets reached a record high of **$468.0 billion** - Total money market assets were **$634.4 billion** at quarter-end, an **8%** increase from the prior year[9](index=9&type=chunk) - Money market fund assets achieved a record **$468.0 billion**, up **10%** from **June 30, 2024**[9](index=9&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) [Q2 2025 vs. Q2 2024 Performance](index=2&type=section&id=Q2%202025%20vs.%20Q2%202024%20Performance) Revenue grew **6%** year-over-year, driven by higher average money market and equity assets. Operating expenses saw a significant **15%** decrease, primarily because the prior-year quarter included a large impairment charge on an intangible asset. This favorable expense comparison, combined with revenue growth, led to a substantial increase in operating and net income - Revenue increased by **$22.3 million (6%)** due to higher average money market and equity assets[10](index=10&type=chunk) - Operating expenses decreased by **$54.1 million (15%)**, mainly due to the absence of a Q2 2024 intangible asset impairment charge of **$66.3 million**[2](index=2&type=chunk)[11](index=11&type=chunk) - Nonoperating income increased by **$11.8 million**, primarily from a rise in the market value of investments[12](index=12&type=chunk) - In Q2 2025, revenue was sourced **53%** from money market assets and **46%** from long-term assets (equity, fixed-income, alternatives)[10](index=10&type=chunk) [Q2 2025 vs. Q1 2025 Performance](index=2&type=section&id=Q2%202025%20vs.%20Q1%202025%20Performance) On a sequential basis, revenue was nearly flat, with the benefit of an extra day in the quarter being offset by lower performance fees. Operating expenses increased by **5%**, largely because the first quarter of 2025 included a one-time value added tax (VAT) refund from the U.K., making for a difficult comparison - Revenue increased by a marginal **$1.3 million**, primarily due to one more day in Q2, partially offset by decreased performance fees[13](index=13&type=chunk) - Operating expenses rose by **$16.0 million (5%)**, mainly because Q1 2025 results included a **$12.3 million VAT refund** which lowered that quarter's expenses[13](index=13&type=chunk) [Year-to-Date (YTD) 2025 vs. YTD 2024 Performance](index=2&type=section&id=Year-to-Date%20(YTD)%202025%20vs.%20YTD%202024%20Performance) For the first six months of 2025, revenue increased by **6%** compared to the same period in 2024, driven by higher average assets. Operating expenses decreased by **9%**, again reflecting the significant impairment charge taken in Q2 2024. Consequently, net income for the first half of the year doubled - YTD revenue increased by **$49.4 million (6%)** due to higher average money market and equity assets, along with an increase in performance fees[15](index=15&type=chunk) - YTD operating expenses decreased by **$60.1 million (9%)**, primarily due to the Q2 2024 impairment charge and a VAT refund received in 2025[17](index=17&type=chunk) - The revenue mix for the first half of 2025 was consistent, with **53%** from money market assets and **46%** from long-term assets[16](index=16&type=chunk) [Detailed Financial Statements and Data](index=5&type=section&id=Detailed%20Financial%20Statements%20and%20Data) [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) The income statements for Q2 and the first half of 2025 show substantial year-over-year growth. For Q2 2025, operating income grew **188%** to **$117.1 million**, and net income attributable to the company increased **333%** to **$91.0 million**. For the six-month period, net income doubled to **$192.1 million** Q2 2025 vs Q2 2024 Consolidated Statements of Income | (in thousands) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $424,844 | $402,583 | 6% | | **Total Operating Expenses** | $307,760 | $361,866 | (15%) | | **Operating Income** | $117,084 | $40,717 | 188% | | **Net Income** | $91,000 | $21,027 | 333% | YTD 2025 vs YTD 2024 Consolidated Statements of Income | (in thousands) | YTD 2025 | YTD 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $848,384 | $798,954 | 6% | | **Total Operating Expenses** | $599,528 | $659,656 | (9%) | | **Operating Income** | $248,856 | $139,298 | 79% | | **Net Income** | $192,134 | $96,060 | 100% | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet shows total assets of **$2.15 billion** as of **June 30, 2025**, up from **$2.08 billion** at the end of 2024. Key changes include an increase in intangible assets and a corresponding increase in treasury stock due to share repurchases, which reduced total equity Consolidated Balance Sheet Summary | (in thousands) | June 30, 2025 | Dec. 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | $2,151,585 | $2,084,684 | | **Total Liabilities** | $874,487 | $933,964 | | **Total Equity** | $1,114,105 | $1,095,206 | [Changes in Long-Term Assets](index=8&type=section&id=Changes%20in%20Long-Term%20Assets) This section details the flow of long-term assets. For Q2 2025, total long-term assets experienced net redemptions of **$466 million**, as net sales of **$1.8 billion** in equity were more than offset by net redemptions of **$2.4 billion** in fixed income. Market gains and foreign exchange had a significant positive impact on ending asset values [By Asset Class](index=8&type=section&id=By%20Asset%20Class) In Q2 2025, equity assets had net sales of **$1.8 billion**, while fixed-income assets saw net redemptions of **$2.4 billion**. Alternative/private markets assets recorded net sales of **$231 million**. Market gains contributed positively across equity (**$5.3B**) and fixed income (**$1.4B**) Q2 2025 Long-Term Asset Flows by Class | Q2 2025 Flows (in millions) | Net Sales (Redemptions) | Market Gains (Losses) | Ending Assets | | :--- | :--- | :--- | :--- | | **Equity** | $1,781 | $5,277 | $88,994 | | **Fixed Income** | ($2,385) | $1,373 | $98,687 | | **Alternative/Private Markets** | $231 | ($118) | $20,738 | | **Total Long-term** | **($466)** | **$6,657** | **$211,275** | [By Asset Class and Offering Type](index=9&type=section&id=By%20Asset%20Class%20and%20Offering%20Type) A deeper look into Q2 2025 flows shows that equity net sales were strong in both funds (**$569M**) and separate accounts (**$1.2B**). Conversely, fixed-income net redemptions were split between funds (-**$1.2B**) and separate accounts (-**$1.2B**) Q2 2025 Net Sales by Asset Class and Offering Type | Q2 2025 Net Sales (in millions) | Funds | Separate Accounts | Total | | :--- | :--- | :--- | :--- | | **Equity** | $569 | $1,212 | $1,781 | | **Fixed Income** | ($1,188) | ($1,197) | ($2,385) | | **Alternative/Private Markets** | $283 | ($52) | $231 | [By Offering Type](index=10&type=section&id=By%20Offering%20Type) For Q2 2025, total long-term fund assets experienced net redemptions of **$413 million**, while separate accounts saw smaller net redemptions of **$53 million**. For the first six months of 2025, both categories saw net inflows, with funds at **$103 million** and separate accounts at **$525 million** Q2 2025 Long-Term Asset Flows by Offering Type | Q2 2025 Flows (in millions) | Net Sales (Redemptions) | Ending Assets | | :--- | :--- | :--- | | **Total Fund Assets** | ($413) | $110,409 | | **Total Separate Account Assets** | ($53) | $100,866 | [Managed and Average Managed Assets](index=11&type=section&id=Managed%20and%20Average%20Managed%20Assets) This section provides a historical view of managed assets. Total managed assets ended Q2 2025 at a record **$845.7 billion**. Average managed assets for the quarter were **$837.3 billion**, down slightly from Q1 2025 but up **7%** from Q2 2024. Money market assets consistently represent the largest portion of both ending and average AUM Managed Assets by Type (Period End) | (in millions) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | **Total Long-term Assets** | $211,275 | $202,651 | $196,082 | | **Money Market Assets** | $634,400 | $637,122 | $586,647 | | **Total Managed Assets** | **$845,675** | **$839,773** | **$782,729** | Average Managed Assets by Quarter | Quarter Ended (in millions) | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | **Total Avg. Long-term Assets** | $204,761 | $203,377 | $196,816 | | **Total Avg. Money Market Assets** | $632,543 | $639,827 | $582,758 | | **Total Avg. Managed Assets** | **$837,304** | **$843,204** | **$779,574** | [Corporate Information](index=3&type=section&id=Corporate%20Information) [Earnings Call Information](index=3&type=section&id=Earnings%20Call%20Information) The company will host its Q2 2025 earnings conference call on **Friday, August 1, 2025**, at **9 a.m. Eastern Time**. The report provides domestic and international call-in numbers, as well as details for accessing the online webcast and replay - An earnings conference call is scheduled for **9 a.m. Eastern** on **Friday, August 1, 2025**[19](index=19&type=chunk) - Investors can listen via phone by calling **888-506-0062** (domestic) or **973-528-0011** (international), or online through the company's website[19](index=19&type=chunk) [About Federated Hermes](index=3&type=section&id=About%20Federated%20Hermes) Federated Hermes is a global active investment manager headquartered in Pittsburgh, with over **2,000** employees worldwide. As of **June 30, 2025**, the firm managed **$845.7 billion** in assets, offering a wide range of investment solutions to more than **10,000** institutional and intermediary clients - The company is a global leader in active investment management with **$845.7 billion** in assets under management as of **June 30, 2025**[20](index=20&type=chunk)[21](index=21&type=chunk) - It provides equity, fixed-income, alternative/private markets, multi-asset, and liquidity management strategies to over **10,000 institutions and intermediaries** globally[20](index=20&type=chunk)

Financial Performance - Federated Hermes reported earnings per diluted share (EPS) of $1.16 for Q2 2025, a significant increase from $0.20 in Q2 2024, with net income rising to $91.0 million from $21.0 million year-over-year [1][8][13] - Revenue for Q2 2025 increased by $22.3 million or 6% compared to Q2 2024, primarily driven by higher average money market and equity assets [8][14] - Operating expenses decreased by $54.1 million or 15% in Q2 2025, mainly due to lower intangible asset-related expenses from the previous year's impairment [9][15] Asset Management - Total managed assets reached a record $845.7 billion as of June 30, 2025, up $63.0 billion or 8% from $782.7 billion a year earlier [2][36] - Equity assets increased to $89.0 billion, up $11.1 billion or 14% from the previous year, while fixed-income assets rose to $98.7 billion, up $3.4 billion or 4% [4][5] - Money market assets also saw growth, reaching $634.4 billion, an increase of $47.8 billion or 8% from June 30, 2024 [7][36] Investment Strategies - The company experienced strong demand for its microshort and ultrashort funds, appealing to investors focused on capital preservation and liquidity [3] - Federated Hermes' MDT strategies saw assets grow to $23.2 billion, up $6.4 billion from Q1 2025 and $8.9 billion year-to-date [13] Shareholder Returns - The board of directors declared a dividend of $0.34 per share, payable on August 15, 2025 [3][13] - The company repurchased 1,547,182 shares of its class B common stock for $64.5 million during Q2 2025 and authorized a new share repurchase program for an additional 5 million shares [3][13]

Core Viewpoint - The comparison between Federated Hermes (FHI) and Cohen & Steers Inc (CNS) indicates that FHI currently offers better value for investors based on various financial metrics and rankings [1][3][7]. Valuation Metrics - FHI has a forward P/E ratio of 11.17, significantly lower than CNS's forward P/E of 24.45 [5]. - The PEG ratio for FHI is 0.87, while CNS has a PEG ratio of 2.40, suggesting FHI is more favorably valued in terms of expected earnings growth [5]. - FHI's P/B ratio stands at 3.59 compared to CNS's P/B of 7.29, indicating a better market value relative to book value for FHI [6]. Zacks Rank and Earnings Outlook - FHI holds a Zacks Rank of 2 (Buy), reflecting positive earnings estimate revisions, while CNS has a Zacks Rank of 3 (Hold) [3]. - The Zacks Rank system favors stocks with improving earnings outlooks, which supports FHI's position as a more attractive investment [3][7]. Value Grades - FHI has been assigned a Value grade of B, whereas CNS has a Value grade of D, further emphasizing FHI's superior valuation metrics [6].

Group 1: Company Performance - Federated Hermes (FHI) shares have increased by 11.4% over the past month and reached a new 52-week high of $47.3 [1] - The stock has gained 14.5% since the beginning of the year, outperforming the Zacks Finance sector's 9.2% and the Zacks Financial - Investment Management industry's 0.9% [1] - The company has consistently beaten earnings estimates, reporting EPS of $1.1 against a consensus estimate of $0.91 in its last earnings report [2] Group 2: Earnings and Revenue Projections - For the current fiscal year, Federated Hermes is expected to post earnings of $4.37 per share on revenues of $1.72 billion, reflecting a 35.29% change in EPS and a 5.25% change in revenues [3] - The next fiscal year projections indicate earnings of $4.43 per share on revenues of $1.78 billion, representing year-over-year changes of 1.23% and 3.42%, respectively [3] Group 3: Valuation Metrics - Federated Hermes has a Value Score of A, with Growth and Momentum Scores of C and B, respectively, resulting in a VGM Score of B [6] - The stock trades at 10.8X current fiscal year EPS estimates, below the peer industry average of 11.9X, and at 13.3X trailing cash flow compared to the peer group's average of 12.4X [7] - The PEG ratio stands at 0.84, positioning the company favorably among value investors [7] Group 4: Zacks Rank and Investment Potential - Federated Hermes holds a Zacks Rank of 2 (Buy), supported by a solid earnings estimate revision trend [8] - The company meets the criteria for investors seeking stocks with Zacks Rank of 1 or 2 and Style Scores of A or B, indicating potential for further gains [9] Group 5: Industry Comparison - Affiliated Managers Group, Inc. (AMG) is a notable peer with a Zacks Rank of 2 (Buy) and similar value metrics, indicating a competitive landscape [10] - AMG is expected to post earnings of $23.33 per share on revenues of $2.06 billion for the current fiscal year, having beaten consensus estimates by 1.96% last quarter [11] - The Financial - Investment Management industry is performing well, ranking in the top 11% of all industries, suggesting favorable conditions for both FHI and AMG [12]

Core Insights - Federated Hermes is well-positioned to maintain its earnings-beat streak in upcoming reports, particularly due to its strong historical performance in earnings surprises [1] - The company has an average surprise of 14.61% over the past two quarters, indicating a consistent ability to exceed earnings estimates [1][4] Earnings Performance - In the last reported quarter, Federated Hermes achieved earnings of $1.1 per share, surpassing the Zacks Consensus Estimate of $0.91 per share by 20.88% [2] - For the previous quarter, the company reported earnings of $1.04 per share against an expectation of $0.96 per share, resulting in an 8.33% surprise [2] Earnings Estimates - Recent estimates for Federated Hermes have been trending upward, with a positive Earnings ESP of +0.68%, suggesting analysts are optimistic about the company's earnings prospects [4][7] - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) indicates a strong likelihood of another earnings beat [7] Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [5] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [6]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell even higher, with the expectation that established trends will continue [1] Company Overview: Federated Hermes (FHI) - Federated Hermes currently holds a Momentum Style Score of B, indicating a positive momentum outlook [3] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [4] Performance Metrics - FHI shares have increased by 2.92% over the past week, outperforming the Zacks Financial - Investment Management industry, which rose by 1.91% [6] - Over the past month, FHI's price change is 8.15%, compared to the industry's 4.59% [6] - In the last quarter, FHI shares have risen by 23.29%, and over the past year, they have gained 37.45%, while the S&P 500 has increased by 19.67% and 12.87%, respectively [7] Trading Volume - The average 20-day trading volume for FHI is 592,996 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, five earnings estimates for FHI have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $4.20 to $4.36 [10] - For the next fiscal year, four estimates have also moved higher, with no downward revisions noted [10] Conclusion - Given the positive momentum indicators and earnings outlook, FHI is positioned as a strong buy candidate for investors seeking short-term opportunities [12]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - Asset-light companies serve as effective portfolio diversifiers, particularly in the context of ongoing tariff threats affecting international manufacturers [2] Group 2 - The SPDR Financial Sector ETF has shown outperformance, indicating potential investment opportunities in the financial sector [2]

Core Viewpoint - Federated Hermes, Inc. (FHI) has demonstrated strong performance with a 35.1% increase in share price over the past year, outperforming its industry peers, driven by solid growth in assets under management (AUM) and strategic business expansions [2][8][19] Group 1: Financial Performance - FHI shares reached a 52-week high of $44.50, closing at $44.25 [2] - AUM increased by 7.8% year-over-year in Q1 2025, totaling $839.8 billion, supported by liquidity strategies and diverse asset growth [4][8] - Money market assets grew 10.1% year-over-year to a record $637.1 billion in Q1 2025, enhancing client fund offerings [5][8] Group 2: Strategic Initiatives - The company has expanded operations through acquisitions, including C.W. Henderson & Associates in 2022 and Horizon Advisers in 2021, which have bolstered AUM growth and product diversification [6] - FHI maintains a strong balance sheet with $541.8 million in cash and manageable long-term debt of $348.2 million as of March 31, 2025 [9] Group 3: Capital Distribution - The board authorized a share repurchase program allowing the repurchase of up to 5 million shares, with 2.7 million shares available as of March 31, 2025 [10] - FHI raised its quarterly dividend by 9.7% to 34 cents per share in April 2025, with a current dividend yield of 3.1% [11] Group 4: Market Position and Valuation - The consensus estimates suggest a year-over-year sales increase of 4.8% for 2025 and 3.1% for 2026, with earnings expected to rise by 33.1% and 0.9% respectively [14] - FHI's current P/E ratio is 10.25X, lower than the industry average of 17.49X, indicating attractive valuation [15][19]

Core Viewpoint - Federated Hermes (FHI) has shown strong stock performance, with a 4.9% increase over the past month and a new 52-week high of $44.5, outperforming the Zacks Finance sector and the Zacks Financial - Investment Management industry [1][2]. Financial Performance - The company has consistently exceeded earnings expectations, reporting EPS of $1.1 against a consensus estimate of $0.91 in its last earnings report [2]. - For the current fiscal year, Federated Hermes is projected to achieve earnings of $4.3 per share on revenues of $1.71 billion, reflecting a 33.13% increase in EPS and a 4.81% increase in revenues [3]. - The next fiscal year is expected to see earnings of $4.33 per share on revenues of $1.76 billion, indicating a year-over-year change of 0.85% in EPS and 3.09% in revenues [3]. Valuation Metrics - The stock trades at 10.3 times the current fiscal year EPS estimates, below the peer industry average of 11.6 times [7]. - On a trailing cash flow basis, it trades at 12.5 times compared to the peer group's average of 12 times [7]. - The PEG ratio stands at 0.8, suggesting that while the stock is not in the top tier from a value perspective, it remains attractive [7]. Zacks Rank and Style Scores - Federated Hermes holds a Zacks Rank of 2 (Buy), supported by a positive earnings estimate revision trend [8]. - The stock has a Value Score of B, a Growth Score of D, and a Momentum Score of C, resulting in a combined VGM Score of B [6][8]. - The combination of a favorable Zacks Rank and Style Scores indicates potential for further gains in the stock [8].

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four main types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score assesses a company's future growth potential based on earnings and sales [4] - Momentum Score evaluates stocks based on recent price trends and earnings estimate changes [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Style Scores Interaction - The Zacks Rank utilizes earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, achieving an average annual return of +25.41% since 1988 [8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Company Spotlight: Federated Hermes - Federated Hermes, Inc. is a global asset manager with $839.8 billion in assets under management as of March 31, 2025 [11] - The company currently holds a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating solid performance metrics [11] - Recent analyst revisions have increased the earnings estimate for fiscal 2025 by $0.42 to $4.33 per share, with an average earnings surprise of 13.1% [12]