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

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence through various resources like daily updates, research reports, and stock screens [1] Group 1: Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum characteristics, helping investors identify stocks likely to outperform the market in the short term [2] - Each stock is rated from A to F, with A indicating the highest potential for outperformance [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Group 2: Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in stock selection, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.86% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 stocks rated by the Zacks Rank, making it essential for investors to utilize Style Scores to narrow down their choices [8] - For optimal returns, stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended [9] Group 3: Company Spotlight - Federated Hermes - Federated Hermes, Inc. is a global asset manager with $902.6 billion in assets under management as of December 31, 2025, formed from the merger of Federated Investors and Hermes Investment Management [11] - The company holds a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating potential for growth [11] - Federated Hermes is projected to have a year-over-year earnings growth of 1.6% for the current fiscal year, with upward revisions in earnings estimates and an average earnings surprise of +17.8% [12]