Federated Hermes, Inc. (FHI) Soars to 52-Week High, Time to Cash Out?

Core Viewpoint - Federated Hermes has shown strong stock performance, reaching a 52-week high and outperforming its sector and industry peers in terms of year-to-date gains [1][2]. Performance Summary - The stock has increased by 1.7% over the past month and 4.3% since the beginning of the year, while the Zacks Finance sector has remained flat and the Zacks Financial - Investment Management industry has declined by 8.9% [1]. - The company has consistently beaten earnings estimates, with the latest EPS reported at $1.39 against a consensus estimate of $1.2, and revenue exceeding expectations by 2.72% [2]. Earnings Forecast - For the current fiscal year, Federated Hermes is projected to achieve earnings of $5.07 per share on revenues of $1.95 billion, reflecting a 1.81% increase in EPS and an 8.34% increase in revenues [3]. - The next fiscal year is expected to see earnings rise to $5.63 per share on revenues of $2.04 billion, indicating a year-over-year growth of 10.98% in EPS and 4.5% in revenues [3]. Valuation Metrics - The stock trades at a valuation of 10.7 times the current fiscal year EPS estimates, slightly below the peer industry average of 10.9 times [7]. - On a trailing cash flow basis, it trades at 15.4 times compared to the peer group's average of 11.9 times, with a PEG ratio of 0.53, positioning it favorably for value investors [7]. Zacks Rank and Style Scores - Federated Hermes holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates, which is favorable for potential investors [8]. - The company has a Value Score of A, a Growth Score of D, and a Momentum Score of B, resulting in a combined VGM Score of B, indicating a solid investment opportunity [6][8].