3 Undervalued Capital Markets Stocks for Friday, October 16
Discover the top 3 undervalued Capital Markets stocks for Friday, October 16 based on AAII’s Stock Grades.Jenna Brashear
A+ Stock Grade Summary:
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COMPANY SUMMARY
Federated Hermes, Inc. is a publicly owned investment manager. Through its subsidiaries, the firm provides its services to individuals, including high net worth individuals, banking or thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors. Through its subsidiaries, it manages separate client-focused equity, fixed income, balanced and money market mutual funds along with separate client-focused equity, fixed income, money market, and balanced portfolios. Through its subsidiaries, the firm invests in the public equity and fixed income markets across the globe. It invests in growth and value stocks of small-cap, mid-cap, and large-cap companies. The firm makes its fixed income investments in ultra-short, short-term, and intermediate-term mortgage-backed, U.S. Government, U.S. corporate, high yield, and municipal securities. It employs both fundamental and quantitative analysis to make its equity investments. Federated Hermes, Inc. was founded in 1955 and is based in Pittsburgh, Pennsylvania with additional offices in New York City; Chicago, Illinois and London, United Kingdom.
Commentary & Analysis
Which Is a Better Investment, Federated Hermes, Inc. or Sharplink, Inc. Stock?
Learn more about whether Federated Hermes, Inc. or Sharplink, Inc. is a better investment based on AAII's A+ Investor grades, which compare both companies' key financial metrics.Tudor Pop
3 Undervalued Capital Markets Stocks for Wednesday, September 16
Discover the top 3 undervalued Capital Markets stocks for Wednesday, September 16 based on AAII’s Stock Grades.Jenna Brashear
Which Is a Better Investment, Federated Hermes, Inc. or Miami International Holdings, Inc. Stock?
Learn more about whether Federated Hermes, Inc. or Miami International Holdings, Inc. is a better investment based on AAII's A+ Investor grades, which compare both companies' key financial metrics.Tudor Pop
3 Undervalued Capital Markets Stocks for Monday, August 17
Discover the top 3 undervalued Capital Markets stocks for Monday, August 17 based on AAII’s Stock Grades.Tudor Pop
Financial Summary
| Share Statistics | FHI | Industry Median |
Percentile (All Stocks) |
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| Market Cap (Mil) | $4,162.5 | $2,602.9 | 65% |
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| Shares Out (Mil) | 71.9 | 82.0 | 56% |
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| Institutional Ownership | 95.5% | 74.1% | 67% |
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| Float (Mil) | 68.0 | 75.4 | 53% |
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| Beta | 0.64 | 0.94 | 37% |
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| Avg Daily Volume (000s) | 822 | 447 | 67% |
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| Price Change (52-week) |
22.7% | 69.9% | 71% |
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| Growth | FHI | Industry Median |
Percentile (All Stocks) |
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| Sales (5yr) | 4.5% | 8.2% | 34% |
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| Net Income (5yr) | 4.3% | 6.7% | 46% |
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| EPS (5yr) | 9.7% | 8.7% | 47 |
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| Dividends (5yr) | 4.3% | 1.1% | 85% |
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| Cash Flow (5yr) | 10.8% | 0.0% | 70% |
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| Estimates | Qtrly | Current Fiscal Year |
Next Fiscal Year |
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| # of Estimates | 4 | 5 | 6 | |
| Current EPS | $1.423 | $5.515 | $5.793 | |
| Month Ago EPS | $1.433 | $5.500 | $5.846 | |
| # Rev Up | 0 | 1 | 1 | |
| # Rev Down | 1 | 0 | 0 | |
| Three Months Ago EPS | $1.413 | $5.390 | $5.823 | |
| Year/Year Chg | 3.1% | 7.5% | 26.2% | |
| Financials | FHI | Industry Median |
Percentile (All Stocks) |
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| Sales (TTM) (Mil) | $1,934 | $873 | 60% |
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| Net Income (TTM) (Mil) | $412 | $81 | 76% |
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| EPS (TTM) | $5.379 | $0.900 | 87% |
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| Operating Cash Flow (TTM) (Mil) | $374 | $48 | 67% |
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| Net Cash Flow (TTM) (Mil) | ($69) | $15 | 17% |
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| Long-Term Debt (Q1) (Mil) | $432 | $186 | 57% |
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| Enterprise Value (Q1) (Mil) | $4,245 | $1,258 | 60% |
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| Valuation | FHI | Industry Median |
Percentile (All Stocks) |
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| P/B | 3.33 | 2.47 | 71% |
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| P/E | 10.9 | 20.3 | 22% |
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| Dividend Yield | 2.6% | 0.9% | 81% |
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| PEG (5yr hist) | 1.1 | 1.3 | 51% |
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| Ratios | FHI | Industry Median |
Percentile (All Stocks) |
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| Gross Margin | 69.0% | 72.7% | 80% |
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| Net Margin | 21.3% | 15.2% | 80% |
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| ROA | 18.4% | 1.4% | 95% |
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| ROE | 34.8% | 12.5% | 89% |
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| Liabilities to Assets | 40.1% | 59.5% | 31% |
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| F-Score | 7 | 5 | 82% |
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Passing Stock Screens
As of 10/30/2026, from a list of 60 stock screening strategies,
GURU STRATEGY
Graham--Defensive Investor (Utility) Screen
Factors: Yield, Value, Quality, Industry/Sector
Graham's approach leads to three separate screens that focus on the concept of intrinsic value, justified by a firm's financial strength.
| Performance Since Inception: | 6.9% |
| +/- S&P 500: | -0.5 |
