
Here's Why Federated Hermes (FHI) is a Strong Momentum 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.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Is This 1 Momentum Stock a Screaming Buy Right Now?
Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
Federated Hermes (FHI)
Headquartered in Pittsburgh, PA, Federated Hermes, Inc. is a global asset manager with $829.6 billion in AUM as of Dec. 31, 2024. It was formed from the merger between Federated Investors and Hermes Investment Management.
FHI sits at a Zacks Rank #3 (Hold), holds a Momentum Style Score of A, and has a VGM Score of A. The stock is up 1.3% and up 15.4% over the past one-week and four-week period, respectively, and Federated Hermes has gained 32.2% in the last one-year period as well. Additionally, an average of 933,669.88 shares were traded over the last 20 trading sessions.
A company's earnings performance is important for momentum 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 $0.20 to $4.30 per share. FHI also boasts an average earnings surprise of 13.1%.
Investors should take the time to consider FHI for their portfolios due to its solid Zacks Ranks, notable earnings metrics, and impressive Momentum and VGM Style Scores.
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Federated Hermes, Inc. (FHI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).