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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Federated Hermes (FHI - Free Report) . FHI is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.54, while its industry has an average P/E of 13.99. FHI's Forward P/E has been as high as 13.06 and as low as 8.68, with a median of 9.91, all within the past year.
Investors will also notice that FHI has a PEG ratio of 0.68. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FHI's industry currently sports an average PEG of 0.89. Over the last 12 months, FHI's PEG has been as high as 1.46 and as low as 0.68, with a median of 0.98.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FHI has a P/S ratio of 2.23. This compares to its industry's average P/S of 3.44.
Finally, we should also recognize that FHI has a P/CF ratio of 12.35. 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. FHI's P/CF compares to its industry's average P/CF of 32.22. Over the past year, FHI's P/CF has been as high as 12.68 and as low as 7.98, with a median of 10.34.
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Federated Hermes (FHI - Free Report) . FHI is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.54, while its industry has an average P/E of 13.99. FHI's Forward P/E has been as high as 13.06 and as low as 8.68, with a median of 9.91, all within the past year.
Investors will also notice that FHI has a PEG ratio of 0.68. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FHI's industry currently sports an average PEG of 0.89. Over the last 12 months, FHI's PEG has been as high as 1.46 and as low as 0.68, with a median of 0.98.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FHI has a P/S ratio of 2.23. This compares to its industry's average P/S of 3.44.
Finally, we should also recognize that FHI has a P/CF ratio of 12.35. 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. FHI's P/CF compares to its industry's average P/CF of 32.22. Over the past year, FHI's P/CF has been as high as 12.68 and as low as 7.98, with a median of 10.34.
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.