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Should Value Investors Buy Federated Hermes (FHI) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Federated Hermes (FHI - Free Report) . FHI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.06, which compares to its industry's average of 16.86. Over the last 12 months, FHI's Forward P/E has been as high as 10.43 and as low as 8.42, with a median of 9.38.
Another notable valuation metric for FHI is its P/B ratio of 3.03. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. FHI's current P/B looks attractive when compared to its industry's average P/B of 3.65. FHI's P/B has been as high as 3.04 and as low as 2.32, with a median of 2.65, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FHI has a P/S ratio of 2.08. This compares to its industry's average P/S of 3.05.
Finally, investors should note that FHI has a P/CF ratio of 8.79. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 30. Within the past 12 months, FHI's P/CF has been as high as 9.49 and as low as 7.51, with a median of 8.52.
Value investors will likely look at more than just these metrics, but the above data helps show that Federated Hermes is likely undervalued currently. And when considering the strength of its earnings outlook, FHI sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Federated Hermes (FHI) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Federated Hermes (FHI - Free Report) . FHI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.06, which compares to its industry's average of 16.86. Over the last 12 months, FHI's Forward P/E has been as high as 10.43 and as low as 8.42, with a median of 9.38.
Another notable valuation metric for FHI is its P/B ratio of 3.03. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. FHI's current P/B looks attractive when compared to its industry's average P/B of 3.65. FHI's P/B has been as high as 3.04 and as low as 2.32, with a median of 2.65, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FHI has a P/S ratio of 2.08. This compares to its industry's average P/S of 3.05.
Finally, investors should note that FHI has a P/CF ratio of 8.79. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 30. Within the past 12 months, FHI's P/CF has been as high as 9.49 and as low as 7.51, with a median of 8.52.
Value investors will likely look at more than just these metrics, but the above data helps show that Federated Hermes is likely undervalued currently. And when considering the strength of its earnings outlook, FHI sticks out at as one of the market's strongest value stocks.