Federated Hermes (FHI) is a Great Momentum Stock: Should You Buy?

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]