Here's Why Federated Hermes (FHI) is a Strong Value Stock

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

Federated Hermes (FHI)

Headquartered in Pittsburgh, PA, Federated Hermes, Inc. is a global asset manager with $839.8 billion in AUM as of March 31, 2025. It was formed from the merger between Federated Investors and Hermes Investment Management.

FHI boasts a Value Style Score of B and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Federated Hermes are trading at a forward earnings multiple of 9.7X, as well as a PEG Ratio of 0.8, a Price/Cash Flow ratio of 11.9X, and a Price/Sales ratio of 2X.

A company's earnings performance is important for value investors as well. For fiscal 2025, four analysts revised their earnings estimate higher in the last 60 days for FHI, while the Zacks Consensus Estimate has increased $0.23 to $4.33 per share. FHI also holds an average earnings surprise of 13.1%.

FHI should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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 Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research