Federated HermesNYSE: FHI

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Investors interested in Financial - Investment Management stocks are likely familiar with Federated Hermes (FHI) and Apollo Global Management Inc. (APO). But which of these two stocks is more attractive to value investors?

Federated Hermes, Inc. registered a +14.2% bottom-line beat for Q3 2024, and the FY 2025 growth outlook for the company is positive. Federated Hermes' shares are trading below fair value based on a comparison of its current earnings multiple with historical trading averages and future bottom-line growth expectations. I continue to assign a Buy rating to FHI, as I think that the stock has good valuation re-rating potential.

Federated Hermes, Inc. FHI reported upbeat earnings for the third quarter, after the closing bell on Thursday.

Federated Hermes, Inc. (NYSE:FHI ) Q3 2024 Earnings Conference Call October 25, 2024 9:00 AM ET Company Participants Ray Hanley - President, Federated Investors Management Company Chris Donahue - President and Chief Executive Officer Tom Donahue - Chief Financial Officer Deborah Cunningham - Chief Investment Officer, Money Markets Saker Nusseibeh - Chief Executive Officer , Federated Hermes Limited Conference Call Participants Patrick Davitt - Autonomous Research Ken Worthington - JPMorgan Chase Bill Katz - TD Cowen Kenneth Lee - RBC Capital Markets Dan Fannon - Jefferies Brennan Hawken - UBS John Dunn - Evercore ISI Brian Bedell - Deutsche Bank Securities Patrick Davitt - Autonomous Research Operator Good day, and welcome to the Federated Investors Management Company Q3 2024 Analyst Call and webcast. At this time all participants are on a listen-only mode.

FHI's third-quarter 2024 results benefit from y/y increases in revenues and AUM.

While the top- and bottom-line numbers for Federated Hermes (FHI) give a sense of how the business performed in the quarter ended September 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

Federated Hermes (FHI) came out with quarterly earnings of $1.06 per share, beating the Zacks Consensus Estimate of $0.92 per share. This compares to earnings of $0.86 per share a year ago.

Federated Hermes (FHI) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.