Federated Hermes, Inc. (FHI) Hits Fresh High: Is There Still Room to Run?

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]