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]

Core Viewpoint - Federated Hermes Inc. is well-positioned for growth due to steady improvement in assets under management (AUM), strategic acquisitions, and a strong liquidity position that supports sustainable capital distribution activities, enhancing shareholder value [1][4][6]. Performance Summary - Over the past year, shares of Federated Hermes (FHI) have increased by 28.4%, outperforming the industry growth of 9.7% and close peers [2]. - The company has a solid financial position with cash and investments totaling $541.8 million and manageable long-term debt of $348.2 million as of March 31, 2025 [6]. AUM Growth Factors - Federated's money market assets reached a record $637.1 billion as of March 31, 2025, reflecting a year-over-year increase of 10.1% [4]. - The company has recorded a compound annual growth rate (CAGR) of nearly 1% in total AUM through 2027, with money market assets being the primary driver [5]. Capital Distribution Strategy - In April 2025, Federated raised its quarterly dividend by 9.7% to 34 cents per share, marking the fifth increase in five years, with a current dividend payout ratio of 30% [8]. - The company has a share repurchase program authorized for 5 million shares, with 2.7 million shares remaining available for repurchase as of March 31, 2025 [9]. Earnings Performance - Federated has consistently surpassed earnings estimates, with an average surprise of 13.08% over the trailing four quarters [10]. - Projected earnings growth for the next three to five years is 36.4%, significantly higher than the industry average of 2.9% [10][11]. Earnings Estimates - The Zacks Consensus Estimate for FHI's earnings in 2025 is projected at $4.40, with a year-over-year growth estimate of 36.22% [12]. - Recent upward revisions in earnings estimates indicate analyst optimism regarding the stock's growth potential [14].