Why Federated Hermes (FHI) is a Top Value Stock for the Long-Term

Federated Hermes (FHI), a global asset manager with $845.7 billion in AUM, is presented as a compelling value opportunity, holding a Zacks Rank #3 (Hold) but boasting strong B-rated VGM and Value Style Scores. The company exhibits attractive valuation with a forward P/E of 11.49, and recent upward revisions from four analysts have increased the 2025 consensus earnings estimate to $4.57 per share. This positive outlook is further supported by FHI's historical average earnings surprise of +14.5%, suggesting it warrants investor consideration.

Analysis

Federated Hermes, Inc. (FHI), a global asset manager with $845.7 billion in assets under management as of June 30, 2025, presents a compelling case for value-oriented portfolios despite its neutral Zacks #3 (Hold) rating. The company's valuation is a key attraction, highlighted by a forward P/E ratio of 11.49, which supports its 'B' grade in the Zacks Value Style Score. Positive sentiment from the analyst community is building, evidenced by four upward earnings estimate revisions in the last 60 days for fiscal 2025. This has lifted the Zacks Consensus Estimate by $0.15 to $4.57 per share. Furthermore, FHI has a demonstrated history of exceeding expectations, boasting an average positive earnings surprise of 14.5%. The combination of a strong 'B' grade for its overall VGM (Value, Growth, Momentum) score and favorable underlying metrics suggests that the neutral rank may not fully capture the company's near-term potential.

Key Decisions for Investors

• Value-focused investors should consider FHI's attractive valuation, evidenced by its forward P/E of 11.49 and its favorable 'B' rating for both Value and overall VGM Style Scores.
• Monitor for a potential upgrade to the Zacks Rank from its current #3 (Hold) status, as the recent positive consensus earnings estimate revision to $4.57 for fiscal 2025 could act as a catalyst for price appreciation.
• Given the company's historical average earnings surprise of +14.5%, investors should watch upcoming earnings announcements for continued outperformance, which would serve to validate the current bullish analyst sentiment.