Federated Hermes, Inc. (FHI) Hit a 52 Week High, Can the Run Continue?

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].