Federated(FHI) ZACKS·2024-11-26 13:45Core Insights - Stocks hitting their 52-week high are perceived as winners and present attractive investment opportunities, but they may also face profit-taking and pullbacks [1][4] - Not all stocks at a 52-week high are overpriced; some may still have significant upside potential [2][5] Investment Strategy - A momentum investing strategy, "buy high, sell higher," can be effective in identifying stocks that may continue to rise despite being at a high price [4] - A screening process is employed to identify 52-week high stocks with strong earnings growth expectations, solid value metrics, and price momentum [7] Screening Criteria - Current Price/52 Week High >= 0.8 indicates stocks trading within 20% of their 52-week high [8] - Positive price changes over the past four weeks and twelve weeks ensure continued upward momentum [9][10] - Valuation metrics such as Price/Sales and P/E ratios are used to identify undervalued stocks compared to industry peers [11][12] - Zacks Rank of 1 (Strong Buy) is included to highlight stocks that have historically outperformed the market [13] - Minimum current price of 1.52 per share [16][18] - Federated Hermes (FHI): Strategic acquisitions in money market assets support AUM growth; Zacks Consensus Estimate for 2024 earnings increased by 5.7% to 1.64 per share [23][24] - State Street Corporation (STT): Solid business wins and strategic buyouts expected to support fee income; Zacks Consensus Estimate for 2024 earnings increased by 0.5% to $8.42 per share [25][26]