Federated Hermes (FHI) is a Top-Ranked Value Stock: Should You Buy?

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]