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Are Investors Undervaluing Federated Hermes (FHI) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Federated Hermes (FHI - Free Report) . FHI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.78. This compares to its industry's average Forward P/E of 15.68. Over the past year, FHI's Forward P/E has been as high as 13.15 and as low as 8.84, with a median of 9.97.
FHI is also sporting a PEG ratio of 0.80. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FHI's industry currently sports an average PEG of 0.85. Over the past 52 weeks, FHI's PEG has been as high as 0.80 and as low as 0.57, with a median of 0.66.
Investors should also recognize that FHI has a P/B ratio of 2.72. 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 3.23. Over the past 12 months, FHI's P/B has been as high as 3.56 and as low as 2.39, with a median of 2.68.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 1.91. This compares to its industry's average P/S of 2.64.
Finally, investors should note that FHI has a P/CF ratio of 9.11. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. FHI's P/CF compares to its industry's average P/CF of 17.78. FHI's P/CF has been as high as 13.25 and as low as 8.37, with a median of 9.70, all within the past year.
These are only a few of the key metrics included in Federated Hermes's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FHI looks like an impressive value stock at the moment.
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Are Investors Undervaluing Federated Hermes (FHI) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Federated Hermes (FHI - Free Report) . FHI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.78. This compares to its industry's average Forward P/E of 15.68. Over the past year, FHI's Forward P/E has been as high as 13.15 and as low as 8.84, with a median of 9.97.
FHI is also sporting a PEG ratio of 0.80. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FHI's industry currently sports an average PEG of 0.85. Over the past 52 weeks, FHI's PEG has been as high as 0.80 and as low as 0.57, with a median of 0.66.
Investors should also recognize that FHI has a P/B ratio of 2.72. 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 3.23. Over the past 12 months, FHI's P/B has been as high as 3.56 and as low as 2.39, with a median of 2.68.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 1.91. This compares to its industry's average P/S of 2.64.
Finally, investors should note that FHI has a P/CF ratio of 9.11. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. FHI's P/CF compares to its industry's average P/CF of 17.78. FHI's P/CF has been as high as 13.25 and as low as 8.37, with a median of 9.70, all within the past year.
These are only a few of the key metrics included in Federated Hermes's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FHI looks like an impressive value stock at the moment.