Federated Hermes, Inc. (FHI) Soars to 52-Week High, Time to Cash Out?

Have you been paying attention to shares of Federated Hermes (FHI)? Shares have been on the move with the stock up 1.7% over the past month. The stock hit a new 52-week high of $55.53 in the previous session. Federated Hermes has gained 4.3% since the start of the year compared to the 0% gain for the Zacks Finance sector and the -8.9% return for the Zacks Financial - Investment Management industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on January 29, 2026, Federated Hermes reported EPS of $1.39 versus consensus estimate of $1.2 while it beat the consensus revenue estimate by 2.72%.

For the current fiscal year, Federated Hermes is expected to post earnings of $5.07 per share on $1.95 in revenues. This represents a 1.81% change in EPS on a 8.34% change in revenues. For the next fiscal year, the company is expected to earn $5.63 per share on $2.04 in revenues. This represents a year-over-year change of 10.98% and 4.5%, respectively.

Valuation Metrics

Though Federated Hermes has recently hit a 52-week high, what is next for Federated Hermes? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Federated Hermes has a Value Score of A. The stock's Growth and Momentum Scores are D and B, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 10.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 10.9X. On a trailing cash flow basis, the stock currently trades at 15.4X versus its peer group's average of 11.9X. Additionally, the stock has a PEG ratio of 0.53. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Federated Hermes an interesting choice for value investors.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Federated Hermes currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Federated Hermes fits the bill. Thus, it seems as though Federated Hermes shares could have a bit more room to run in the near term.

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This article originally published on Zacks Investment Research (zacks.com).

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