• Federated Hermes (FHI) is showing strong technical momentum, setting a new all-time high on Aug. 14.
• The stock is trading above key moving averages, has a Trend Seeker “Buy” signal and a 100% “Buy” opinion from Barchart.
• Shares are up 62% over the past year.
• FHI also has solid fundamentals and pays a dividend yielding 2.5%.  

Today’s Featured Stock

Valued at $4.2 billion, Federated Hermes (FHI) is a global asset manager, offering active investment management and engagement services. Its clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. FHI checks those boxes. Since the Trend Seeker signaled a buy on April 30, the stock gained 32.82%.

FHI Price vs. Daily Moving Averages:

Barchart Technical Indicators for Federated Hermes

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Federated Hermes shares hit a new all-time high on Aug. 14, touching $54.16 in intraday trading.

• Federated Hermes has a Weighted Alpha of +65.92.
• FHI has an 100% “Buy” opinion from Barchart.
• The stock gained 61.95% over the past year.
• FHI has its Trend Seeker “Buy” signal intact.
• Federated Hermes is trading above its 20-, 50-, and 100-day moving averages.
• The stock made 17 new highs and gained 18.72% in the last month.
• Relative Strength Index (RSI) is at 78.37%.
• There’s a technical support level around $53.49.

Don’t Forget the Fundamentals

• $4.16 billion market capitalization.
• 12.31x trailing price-earnings ratio.
• 2.52% dividend yield.
• Revenue is projected to grow 5.28% this year and another 4.01% next year.
• Earnings are estimated to increase 39.80% this year and an additional 1.17% next year.

Analyst and Investor Sentiment on Federated Hermes

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts are bullish on FHI, but Morningstar is cautious.

• The Wall Street analysts tracked by Barchart have issued 2 “Strong Buy” and 5 
  “Hold” opinions on the stock.
• Their price targets are between $45-$54.
• Value Line gives the stock its above-average rating with a price target of $56.
• CFRA’s MarketScope Advisor gives the stock a “Strong Buy” rating.
• Morningstar thinks the stock is overvalued by 27% with a fair value of $42.
• 706 individual investors on Motley Fool think the stock will beat the market while 102 think it won’t.
• 4,010 investors monitor the stock on Seeking Alpha, which rates the stock a “Buy.”

The Bottom Line on Federated Hermes

Federated Hermes currently has momentum and is hitting new highs.

I caution that FHI is volatile and even speculative in the current environment, which means investors should use strict risk management and stop-loss strategies.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.