NASDAQ · STOCK
Federated Hermes
$57.42
52W $46.66 – $60.77
65/100
—
11.1
0.63
Explore FHI Further
⚠
Buy rating, but near-term risk/reward is unfavorable
The long-term recommendation is based on the composite investment score. The near-term risk/reward is based on nearby support and resistance levels. These can differ when a strong company trades close to resistance with support further below.
Is FHI Bullish or Bearish?
Bullish.
Innellis AI committee rates Federated Hermes (FHI) Buy with a composite score of 65/100
, based on 7 analysts with 86% agreement.
Last updated July 20, 2026.
Executive Summary
The primary driver is low leverage (debt-to-equity 0.29) -- balance sheet can absorb a shock. The main limiting factor is sector concentration is already high (hhi 2975.52). The committee is constructive but not yet at full conviction.
Bull & Bear Case
Bull Case
- Positive MACD histogram signals bullish momentum.
- Daily trend: uptrend.
- Weekly trend: uptrend.
- Daily and weekly trends are both bullish — multi-timeframe alignment, highest confidence.
- Higher Highs / Higher Lows structure confirms bullish price action.
Bear Case
- Bearish candlestick pattern(s) detected: Three Black Crows.
- Risk/reward is unfavorable: 9.7% downside vs 1.5% upside.
Price History (6M)
AI Investment Committee
Committee Consensus
As of July 20, 2026
Overall Committee Score
65/100
Agreement
86%
Analysts
7
Conviction
High
Value Analyst
bullish
70
/ 100 · High confidence
Classic value case: cheap on multiples with earnings power to back it up
+ P/E of 11.2 is inexpensive for the broad market
Growth Analyst
bullish
60
/ 100 · High confidence
Strong, accelerating growth with consistent execution
+ 4 consecutive earnings beats -- consistent execution
− Growth rate is decelerating quarter over quarter -- the trend line matters more than the level
Technical Analyst
bullish
63
/ 100 · High confidence
Price action is constructive -- trend and momentum agree
+ Price structure making higher highs and higher lows
Risk Analyst
bullish
80
/ 100 · Low confidence
Risk profile is manageable -- leverage, volatility, and event exposure all look contained
+ Low leverage (debt-to-equity 0.29) -- balance sheet can absorb a shock
Macro Analyst
bullish
70
/ 100 · Moderate confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst
bullish
66
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.25 across 4 articles, 14d)
Portfolio Manager
neutral
45
/ 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 2975.52)
Investment Thesis Evolution
Committee score moved marginally from 64.8 to 64.8.
- New bearish signals: 1 appeared.
- Bullish support removed: 1 signal(s) disappeared.
- New bullish signals: 1 appeared.
- Bearish pressure eased: 1 signal(s) disappeared.
Analyst-level changes:
- Portfolio Manager: +1 bearish signal(s).
- Value Analyst: +1 bullish signal(s).
Comparing 2026-07-19 to 2026-07-20 (1 day apart).
Technical Analysis
RSI (14)
47.9
Neutral
MACD Histogram
0.057
Bullish Momentum
Trend Direction
Uptrend
Weekly: Uptrend
Market Structure
Hh Hl
Support
$52.48
Resistance
$58.99
Bollinger %B
0.54
Inside Bands
Price vs Moving Averages
EMA 9
$58.58
Below
EMA 21
$58.09
Below
EMA 50
$57.35
Above
EMA 200
$54.20
Above
Fundamental Analysis
Valuation
90
Growth
72
Profitability
1
Financial Health
100
Cash Flow
37
Valuation
P/E Ratio
11.1×
P/B Ratio
3.51×
PEG Ratio
0.24
Dividend Yield
0.02%
52W High
$60.77
52W Low
$46.66
Quality & Growth
ROE
33.7%
ROA
17.6%
Gross Margin
70.0%
Operating Margin
27.4%
Revenue Growth YoY
—
Debt / Equity
0.37
AI Fundamental Assessment
P/E ratio of 11.1 (inexpensive relative to a 15-40x range); Price-to-book of 3.5x; PEG ratio of 0.2 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 0.3%; Return on assets of 0.2%; Net margin of 0.2%; Gross margin of 0.7%; Current ratio of 39.13 (healthy short-term liquidity); Debt-to-equity of 0.37; Free cash flow margin of 1.0% (thin cash generation); Free cash flow per share is positive (4.16); Most recent quarter beat estimates by 6.3%; 4 consecutive earnings beats; EPS growth decelerating (+3.7% -> -8.6% QoQ); Analyst estimates rising over recent quarters
Key Risks
- Bearish candlestick pattern(s) detected: Three Black Crows.
- Risk/reward is unfavorable: 9.7% downside vs 1.5% upside.
This risk summary is generated from quantitative data signals, not qualitative opinion. All investors should conduct their own due diligence. This is not financial advice.
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