Latest news with #FederatedHermes
CNBC
5 days ago
- Business
- CNBC
Federated Hermes 'impressed' with South Korea's corporate reform progress, sees more to come
Jonathan Pines of Federated Hermes commends South Korea's corporate governance reforms aimed at narrowing the 'Korean discount.' He also weighs in on the implications of the recent Supreme Court ruling involving Samsung Electronics Chairman Lee Jae-yong.
Yahoo
6 days ago
- Business
- Yahoo
Why Federated Hermes (FHI) is Poised to Beat Earnings Estimates Again
Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Federated Hermes (FHI), which belongs to the Zacks Financial - Investment Management industry. This one of the nation's largest managers of money market funds has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 14.61%. For the last reported quarter, Federated Hermes came out with earnings of $1.1 per share versus the Zacks Consensus Estimate of $0.91 per share, representing a surprise of 20.88%. For the previous quarter, the company was expected to post earnings of $0.96 per share and it actually produced earnings of $1.04 per share, delivering a surprise of 8.33%. Price and EPS Surprise With this earnings history in mind, recent estimates have been moving higher for Federated Hermes. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Federated Hermes currently has an Earnings ESP of +0.68%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 31, 2025. Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric. Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. 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 Investment Research
Yahoo
11-07-2025
- Business
- Yahoo
Federated Hermes (FHI) is a Great Momentum Stock: Should You Buy?
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us. Below, we take a look at Federated Hermes (FHI), which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions. It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Federated Hermes currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period. You can see the current list of Zacks #1 Rank Stocks here >>> In order to see if FHI is a promising momentum pick, let's examine some Momentum Style elements to see if this one of the nation's largest managers of money market funds holds up. Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area. For FHI, shares are up 2.92% over the past week while the Zacks Financial - Investment Management industry is up 1.91% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 8.15% compares favorably with the industry's 4.59% performance as well. While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Federated Hermes have increased 23.29% over the past quarter, and have gained 37.45% in the last year. On the other hand, the S&P 500 has only moved 19.67% and 12.87%, respectively. Investors should also pay attention to FHI's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. FHI is currently averaging 592,996 shares for the last 20 days. The Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with FHI. Over the past two months, 5 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost FHI's consensus estimate, increasing from $4.20 to $4.36 in the past 60 days. Looking at the next fiscal year, 4 estimates have moved upwards while there have been no downward revisions in the same time period. Given these factors, it shouldn't be surprising that FHI is a #1 (Strong Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Federated Hermes on your short list. 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 Investment Research
Business Insider
05-07-2025
- Business
- Business Insider
Evercore ISI Reaffirms Their Buy Rating on Federated Hermes (FHI)
In a report released on July 3, John Dunn from Evercore ISI maintained a Buy rating on Federated Hermes, with a price target of $46.00. The company's shares closed last Thursday at $45.54. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Dunn is a 4-star analyst with an average return of 14.0% and a 56.10% success rate. Dunn covers the Financial sector, focusing on stocks such as AllianceBernstein, Cohen & Steers, and Federated Hermes. Federated Hermes has an analyst consensus of Hold, with a price target consensus of $41.25. The company has a one-year high of $45.62 and a one-year low of $31.94. Currently, Federated Hermes has an average volume of 853K. Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FHI in relation to earlier this year. Last month, Paul A Uhlman, the VP of FHI sold 1,000.00 shares for a total of $42,620.00.
Yahoo
01-07-2025
- Business
- Yahoo
Traders' Fear of Missing Out on Stock Gains Outweighs Tariff Concerns
(Bloomberg) -- President Donald Trump's tariff pause is set to end on July 9, with few deals locked in and scant progress in negotiations. Yet the stock market that once swung wildly on trade headlines appears to see little risk, as equity indexes sit near all-time highs and volatility evaporates. Struggling Downtowns Are Looking to Lure New Crowds Sprawl Is Still Not the Answer California Exempts Building Projects From Environmental Law What gives? In part, the calm is being fueled by expectations that Trump will extend his tariff deadline based on his pattern of threatening harsh measures and subsequently backing down, a strategy analysts and strategists call 'TACO' for 'Trump Always Chickens Out.' But more importantly, Wall Street pros see no sense in fighting the market's momentum as the economy remains healthy and Corporate America appears to be taking trade policies in stride — at least for now. 'There's still some focus on July 9, but so many other factors are being watched these days, too,' said Michael Kantrowitz, chief investment strategist at Piper Sandler & Co. 'Once again, investors are less worried. In the absence of a spike in rates, inflation or the unemployment rate, stocks will continue to grind higher.' The S&P 500 Index just closed out its best quarter since December 2023 and cleared the 6,200 level before dipping back below on Tuesday and ending the session down 0.1%. The technology-heavy Nasdaq 100 Index had its best quarter since March 2023 as the stock market's usual leaders are taking their place at the front of the line again. Both posted losses in the first quarter. Meanwhile, traders have amped up their allocations to the market's riskiest corners. Even institutional investors, who mostly stayed put for much of the 25% upswing since April, are gradually moving off the sidelines. And options data shows that Wall Street isn't concerned about substantial volatility anytime soon. Smart Money In 'Trade deals of some kind are likely to come, and underneath, earnings estimates have stabilized after falling in the immediate aftermath of April,' Steven Chiavarone, senior portfolio manager and equity strategist at Federated Hermes, said in a Bloomberg Television interview on Monday. 'What started out as just a relief rally is starting to become something real, and that's what sucks those investors in — slowly and reluctantly.' The S&P 500's double-digit surge from its April 8 trough just before Trump paused his tariffs has largely been driven by retail investors. Now, the so-called smart money is starting to buy in as the rally shows few signs of stopping. Systematic strategies last week ratcheted up their exposure to equities, though they still remain underweight, with positioning in most sectors below the historical average, according to data compiled by Deutsche Bank AG's Parag Thatte. Markets have priced out 84% of macroeconomic risk, based on an assessment by Piper Sandler's Kantrowitz of high-yield credit spreads, leaving room for stocks to move even higher despite the S&P 500 adding more than $10 trillion in value since early April. The optimism has defied war in the Middle East, uncertainty around the macroeconomic outlook, and a lack of clarity on trade. 'We were pretty bullish for June on things that have nothing to do with Trump — this just has to do with the fact there's other stuff going on that's quite positive,' said Alexander Altmann, global head of equities tactical strategies at Barclays Plc. The strategist cited bank deregulation, big tech firms' continued spending on artificial intelligence, and Trump's $3.3 trillion tax and spending bill as factors bolstering the economy. The Senate passed the bill on Tuesday in 51-50 vote with Vice President J.D. Vance casting the deciding ballot. But it could still face resistance in the House of Representatives. Of course, none of this is to say that the risks facing the market have gone away. Even if Trump extends his tariff pause, there are other levies that are likely to raise expenses for companies or consumers — or both. Tempered Enthusiasm 'We're still going to end up with high tariff rates and absorb that cost at some point in the future,' Altmann said. 'This is a market where it's very hard to look and trade more than four weeks ahead right now. And it's very hard to have a strong opinion on events that could or could not happen six months from now.' The way things stand, exporting nations without a bilateral accord in place by July 9 will face tariffs Trump presented on April 2, ones that are much higher than the current baseline 10% so-called reciprocal rate applied to most countries. The UK has locked in a deal that reduced some proposed levies but kept the reciprocal rate in place and left unresolved one of Britain's pain points — 25% duties on steel. The US and China finalized a trade understanding reached in Geneva, US Commerce Secretary Howard Lutnick said last week, but described it as far from comprehensive and with key questions remaining. And Trump has threatened to ramp up tariffs on Japan. 'We don't have any significant trade deals — we have some memorandums of understanding, we have some agreement to move forward, but we don't have anything concrete,' said Kate Moore, chief investment officer of Citigroup Inc.'s wealth unit. 'I've been surprised, to be very honest with you, that the market seems to not care about it. It's one of the reasons why this doesn't feel like a fundamentally-driven market, despite the fact that we see a lot of strength in technology and artificial intelligence.' At the same time, JPMorgan Chase & Co.'s trading desk says the setup is bullish, projecting a streak of all-time highs as earnings carry positive momentum with trade deals expected to be announced. Andrew Tyler, the bank's head of global market intelligence, is looking out for the June nonfarm payrolls report due Thursday. As long as it remains above 100,000, he expects stocks to keep logging fresh records. A survey by Bloomberg of economist estimates sees it coming in at 110,000. 'For now, the market will look through those potential events,' Tyler wrote in a note to clients on Monday, referring to trade turbulence. 'Further, we think the July 9 date gets rolled to avoid any market volatility.' --With assistance from Matt Turner. (Updates with S&P 500's Tuesday performance in fifth paragraph.) 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