Federated Hermes, Inc. (FHI) Hit a 52 Week High, Can the Run Continue?

A strong stock as of late has been Federated Hermes (FHI). Shares have been marching higher, with the stock up 4.9% over the past month. The stock hit a new 52-week high of $44.5 in the previous session. Federated Hermes has gained 7.6% since the start of the year compared to the 7.8% move for the Zacks Finance sector and the -5.3% return for the Zacks Financial - Investment Management industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 24, 2025, Federated Hermes reported EPS of $1.1 versus consensus estimate of $0.91 while it beat the consensus revenue estimate by 0.88%.For the current fiscal year, Federated Hermes is expected to post earnings of $4.3 per share on $1.71 in revenues. This represents a 33.13% change in EPS on a 4.81% change in revenues. For the next fiscal year, the company is expected to earn $4.33 per share on $1.76 in revenues. This represents a year-over-year change of 0.85% and 3.09%, respectively.Valuation MetricsFederated Hermes may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Federated Hermes has a Value Score of B. The stock's Growth and Momentum Scores are D and C, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 10.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.6X. On a trailing cash flow basis, the stock currently trades at 12.5X versus its peer group's average of 12X. Additionally, the stock has a PEG ratio of 0.8. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Federated Hermes currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Federated Hermes passes the test. Thus, it seems as though Federated Hermes shares could still be poised for more gains ahead.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Federated Hermes, Inc. (FHI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks