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

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence through various research services [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, aiding investors in selecting stocks likely to outperform the market in the short term [3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales to find attractive investment opportunities [4] Growth Score - The Growth Style Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Style Score identifies optimal entry points for stocks based on price trends and earnings estimate changes, aligning with the principle that "the trend is your friend" [6] VGM Score - The VGM Score combines the three Style Scores to highlight stocks with the best value, growth, and momentum characteristics, serving as a strong indicator alongside the Zacks Rank [7] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.83% since 1988, significantly outperforming the S&P 500 [8] - There are typically over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down choices [9] Stock to Watch: Federated Hermes (FHI) - Federated Hermes, Inc. is a global asset manager with $871.2 billion in assets under management as of September 30, 2025, formed from a merger between Federated Investors and Hermes Investment Management [12] - FHI holds a 3 (Hold) rating on the Zacks Rank and has a VGM Score of B, with a Momentum Style Score of B, indicating a positive trend with a 1.6% increase in shares over the past four weeks [12] - Recent upward revisions in earnings estimates by three analysts have raised the Zacks Consensus Estimate to $4.95 per share, with an average earnings surprise of +15.9%, making FHI a notable consideration for investors [13]