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The Equity Research Analyst Career Path: The Best Escape from a Ph.D. Program, or a Pathway into the Abyss?

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• “Analyst” is a vague job title that could refer to anyone from entry-level hires in the back office to senior professionals leading teams and managing relationships.
• “Equity” seemingly has 5,192 different meanings depending on the context.
• There are different levels within the Analyst role, and the job also differs based on the company type (bank vs. dedicated research firm vs. hedge fund vs. asset management firm).
• And “Research” itself is a vague term… since all knowledge workers do some amount of research in their jobs.

Here, we’re referring to the Equity Research Analyst role at investment banks and dedicated research boutiques that produce and sell their own equity research reports .

This division is often labeled “sell-side research,” and we’ve covered it in the articles on equity research recruiting , equity research careers , equity research internships , and the equity research associate role .

We’ll pick up the coverage here and move straight to the top of the ladder:

The Equity Research Analyst Job Description

Unlike in investment banking and private equity , where the Analyst is at the bottom of the hierarchy, the Analyst sits at the top in research.

The Analyst’s job is to manage relationships with the companies they cover and the institutional investors that might be interested in those companies.

The division is known for its equity research reports , but Analysts add value mostly by setting up meetings, making introductions, and giving investors new perspectives or information they hadn’t considered.

For many decades, Analysts did this and gave away research for free to encourage institutional investors to trade with their bank, indirectly generating commissions.

Now, with MiFID II in place in Europe , institutional clients pay directly for research, so the role generates revenue more directly (or fails to do so if the clients don’t pay).

Banks in other regions can still use the old business model and give away research for free to generate trading commissions, but these new rules are likely to spread worldwide.

If you look at the main tasks in the research division:

• Speaking with market participants (management teams and investors).
• Doing industry research (e.g., collecting data on market share, pricing, etc.).
• Writing the reports (both short, update reports and longer thought pieces).
• Building models and valuations.
• Determining market sentiment.

Analysts spend most of their time on tasks #1 and #5 – building relationships and generating market insights – and little time on writing reports, building models, or collecting data.

A Day in the Life of an Equity Research Analyst

To illustrate the differences between the Associate and Analyst roles, we’ll walk through a day in the life from the perspective of an Analyst.

Note that this is a “normal day,” i.e., not one during earnings season or an important conference:

7 AM – 8 AM: Arrive at the office, read the news, and look at emails from traders and salespeople asking about a few companies in your coverage universe.

You also start reviewing a few research notes written by your two junior Associates. The numbers look fine, but the commentary is too confusing.

8 AM – 10 AM: You communicate your changes to the Associates when they arrive, and then you ask one of them to research a new digital media company in the healthcare vertical that you might want to add to the coverage universe.

The market opens, but there haven’t been any big corporate announcements or other dramatic happenings, so things are calm as you review your calendar for the day.

10 AM – 12 PM: You take several calls from institutional investor clients: one from a hedge fund Analyst at a mid-sized firm, one from a Portfolio Manager at a large asset management firm , and one from a PM at a start-up hedge fund investing in the TMT sector .

They’re all looking for insights into companies’ earnings announcements in a few weeks; a few also want to meet with the management teams of software and internet companies you cover.

12 PM – 2 PM: You head out to lunch on the other side of town to meet with the CEO and CFO of a newly public Software-as-a-Service (SaaS) company in the consumer retail vertical .

They have solid growth and cash flow numbers and want more institutional attention, so you try to explain investor skepticism toward anything retail-related (well, except for Amazon).

But you agree to make their case to a few institutional clients who have invested in the sector before.

2 PM – 3 PM: On your way over to meet with another company, you take a call in the car from an Associate PM at a growth-oriented hedge fund.

He wants to do a deep dive into one SaaS company’s “true” churn rate because he doubts the official numbers released by management.

You don’t have all the numbers in front of you, so you give vague responses and then refer him to one of your Associates to get more detail.

3 PM – 5 PM: You arrive at the other company: a digital marketing agency and online advertising platform with ~200 employees that is looking to go public in the next few years.

You explain that they’ll need much higher revenue (closer to ~$100 million rather than their current $20 million) to get there and that they’ll need to downplay the “agency” part and focus on the tech platform.

They claim that they have a new technology that will use “AI” to automate client onboarding and campaign setup, but they’re evasive about the details.

You’re quite skeptical, but if this company somehow goes public, it might be worth adding to your coverage. You also make a note to ask around about the feasibility of this technology.

5 PM – 7 PM: Head back to the office and review what the Associates have been working on all day, including a few new notes, updated models, and an Initiating Coverage Report.

You make some edits and then strategize with the one Associate about the super-persistent Associate PM who kept asking for the “real churn numbers” for that one company.

The firm is a good client, but this one guy is so demanding that you’re reconsidering the relationship. You head home after this.

11 PM: As you’re about to go to sleep, an activist hedge fund announces that it has taken a 5% stake in one of the companies in your coverage universe: a security software company.

These types of late-night / last-minute announcements are not common, but they do happen.

You’ll need to have an immediate view in the morning, so you ask your Associate to prepare a few thoughts and come in early so you can send out a short note before the markets open at 9:30 AM.

Why Become an Equity Research Analyst?

The equity research industry as a whole is not in great shape, with falling compensation, headcount reductions, and MiFID II forcing an unbundling of research.

And hardly anyone “interviews for” an Analyst role in equity research – you have to work there for a few years and win promotions up to that level.

So, if you break in as an Equity Research Associate , why would you want to stay in the field long enough to reach the Analyst level?

The short answer is, “there probably isn’t a good reason to do so,” but I like to be fair and balanced, so here’s a quick list of the pros and cons:

Advantages:

• Interesting Work and Solid Pay… for Now – Senior ER Analysts can earn in the mid-six-figures up to the $1 million range, and the work is arguably more interesting and less stressful than what Managing Directors in investment banking All signs point to falling pay, though, so who knows if this will last.
• Potential Exit Opportunities – You’re not quite as “trapped” as, say, a mid-level banker who quits and doesn’t have many other options. You could move to buy-side research roles, go into sales, join a normal company, or go into investor relations at companies or fundraising on the buy-side.
• It’s a Good “Escape Route” from Other Fields – Especially if you have something like an M.D. or Ph.D. in a highly technical field, equity research might allow you to use your expertise to move into plenty of other roles (though you don’t need to reach the Analyst level to do this).

Disadvantages:

• The Industry is Declining – It’s still possible to make money and advance in a declining industry, but it’s more difficult than it is an industry where headcounts and revenue are growing. Also, no one knows how MiFID II and passive investing will play out long-term; the impact could be anything from “neutral to slightly negative” to “apocalypse now.”
• It’s a Huge Grind to Reach the Analyst Level – You’ll have to make it through many, many, many earnings seasons and model/research updates to make it to the top. This process can get quite repetitive, especially if you’re covering an industry less prone to surprises (e.g., not tech or healthcare).

Equity Research Analyst Salary & Lifestyle

There are several different levels within the “Analyst” title, ranging from Vice President (VP) to Managing Director (MD).

At the low end, VP-level Analysts might earn around the $200K to $300K USD salary range at large banks in major financial centers.

Directors move up to the $300K to $600K range, and MDs go up to the $500K to $1 million range.

Around 50% of this compensation comes in the form of base salary, and it’s up to 75% at the lower levels.

These figures will almost certainly fall due to MiFID II and declining research budgets at buy-side firms, but you could still earn into the mid-six figures for the foreseeable future.

As you saw in the day-in-the-life account above, Analysts might work the same amount as Associates: 50-70 hours per week , with ~12-hour days on average, and longer hours during earnings season.

The key difference is that Analysts must travel a lot more , including client visits, conferences, and company meetings.

That means it’s arguably a more stressful job since they also have to review work from the Associates and give them direction.

Recruiting: Pathways into the Equity Research Analyst Role

The Analyst role is a senior one, so you don’t interview for it right out of undergrad or an MBA program.

Most often, people start at the Associate level out of undergrad or a Master’s in Finance program , stay for a few years, and then advance up to the Analyst level… if there’s an opening.

Traditionally, it has been quite difficult to move up by staying at the same bank because Senior Analysts rarely left their jobs voluntarily.

So, research professionals often moved around to different banks and advanced with each move.

Advancing to the Analyst level comes down to proving that you can do the same job that they do: speaking with clients and management teams, delivering insights, and setting up meetings – as opposed to burying yourself in models and reports all day.

Besides this path, some people move into equity research from strategy or management consulting, Big 4 firms , or even corporate finance roles.

However, they join at the Associate level unless they’re already quite senior in their previous industry.

Another option is to complete an advanced degree, such as an M.D. or a Ph.D. in a technical field (physics, engineering, biology, etc.), and then work in a group where technical knowledge is required to understand companies ( biotech , pharmaceuticals, semiconductors , etc.).

But once again, you’re unlikely to join directly at the Analyst level, so you’ll have to demonstrate your accounting/finance/business knowledge to get there and then perform well on the job to advance.

For more on these points, see the article on equity research recruiting .

The Equity Research Analyst Job: Worth the Grind or the Career Change?

In these articles, I usually conclude with an “It depends”-type answer and present both sides.

But I’ll be more definitive here: a long-term career in equity research is probably not worth it in the 2020s unless you truly love it and can’t imagine doing anything else.

Research is still a great entry point into finance because of the lack of a standard, on-cycle hiring process, and the ability to break in as a non-traditional candidate.

But there’s serious skepticism about its long-term future, and I can’t credibly recommend it as an option on-par with careers in investment banking , private equity , or venture capital .

People are also pessimistic about the future of sales & trading , but there’s a key difference: there are still opportunities there if you’re a programmer or you work with more mathematically complex products.

By contrast, there’s less room for programming or advanced math in the fundamental analysis of companies, and the negative trends in equity research affect the industry as a whole – not just specific desks or groups.

So, the Equity Research Analyst job may not be “a pathway into the abyss,” but it’s also not a career I would recommend – unless you’re so enthusiastic about research that you couldn’t imagine doing anything else.

You might be interested in:

• Biotech Equity Research: The Best Escape Plan from Medicine or Academia?
• Fixed Income Research: The Overlooked Younger Brother of Equity Research?

About the Author

Brian DeChesare is the Founder of Mergers & Inquisitions and Breaking Into Wall Street . In his spare time, he enjoys lifting weights, running, traveling, obsessively watching TV shows, and defeating Sauron.

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16 thoughts on “ The Equity Research Analyst Career Path: The Best Escape from a Ph.D. Program, or a Pathway into the Abyss? ”

curious to know your thought on ER now? Im an undergrad studying history but am looking at internships in the ER sector for next summer in London. I have already completed a few virtual internships but am now looking to expand my experience in the financial world. Any advice would be appreciated.

I don’t think much has changed. Compensation might be a little different now, but ER is still not a great long-term career path due to MiFID II, falling numbers of boutiques, and lower fees paid for research. It’s still a decent starting option, but you normally want to move into a deal-based role or a buy-side role after spending a few years there.

Now that this report is 2 years old, curious to hear your thoughts on the outlook for ER. It appears that comp in the U.S. has remained the same since before. Do you think that the effects of MiFid II already been “priced in”? Or will comp begin to fall gradually from here on out?

I would be surprised if compensation increases substantially. It’s true that MiFID II has not been the end of the world, but the impacts on ER groups and firms has been uneven, with some growing and some shrinking. It’s probably less bad than initially feared, but still not a great industry outlook.

I’ve been reading a lot on here for the last couple weeks (love it!) and gotten really interested in Equity Research. Thing is, I’m a 35 year old woman living in Zürich with a humanities PhD leaving the academy. What I read about this career suits me to the core, but I don’t want to invest time in learning modelling and other skills if my apps will be rejected out of hand because of my humanities background. Spent 5 years as a postdoc and realised the academy is not for me, but I got my PhD from an Ivy, if that helps. Do I have any chance of getting into ER? I don’t mind the pay or the shrinking prospects. I love the idea of doing crazy amounts of research and finding things people missed, or just packaging the information so other people can get it.

I think it will be extremely difficult to get into ER if you have a humanities PhD and you’ve worked in academia up until this point. PhDs in technical fields like physics, engineering, chemistry/biology, etc., can get in, but it’s much tougher to do that from a non-technical field. You might have better luck aiming for an investor relations role or something else where communication skills are valued more than technical/accounting/finance knowledge.

Can you chime on the prospect of a career as buyside research analyst? For both equity and credit research. I’m relatively junior but have always worried about things you laid out on this article.

I think buy-side research is somewhat safer because MiFID II does not directly affect firms in a negative way, and buy-side firms will always need people to do fundamental research. Yes, fee compression hurts, but that is just one headwind vs. multiple headwinds for equity research.

I would also say that credit research, especially in areas like high-yield or distressed, is probably safer than equity research because it’s tricky to evaluate those types of bonds, and fixed income has seen less automation / passive investing than equities (yes, there are lots of bond index funds and ETFs, but most are investment-grade).

Saying to avoid it may be a little harsh. Maybe compared to IB/PE, sure, upside comp is more limited. But a job where you can work 50 hours a week and make mid 6 figures still sounds a lot better than most jobs in the corporate world. If you are a good enough associate and stick around long enough you are bound to have an open analyst seat to fill.

That’s fair enough. Though I think 50 hours a week is a bit on the low side, and I expect compensation to drop over time. I guess my thinking is that if you really want better hours, less stress, low-to-mid-six-figure compensation, and more stability, something like corporate development is better… assuming you want to work on deals. If you just want to follow companies, sure, maybe equity research is still a good option.

What about the overall future of Asset Management? Is it wise to pursue a career in Asset Management?

I think it’s also not great, but not necessarily “to be avoided” as equity research is because there’s no MiFID II that completely changes their business model. Yes, fee compression and passive investing have hurt AMs, but passive investing could turn into a giant bubble that bursts at some point, and there will always be some demand for active managers. Also, quant-like skills will become more important there. For more, please see:

https://mergersandinquisitions.com/

I’m curious, is there anywhere in the public equities realm (excluding quant roles) that you would outright recommend to someone starting today?

OK, maybe I’m being a little harsh here. It’s not that I would universally recommend against public markets / public equities roles. It’s more that if you can’t decide between deal-based roles and public markets ones, then you’re safer picking a deal-based role because they’ve held up better over time and are under less fee and headcount pressure.

That said, if you are 100% certain you want to do public markets and have the track record and experience, go ahead.

Within public equities, if you exclude quant roles, Analyst roles at any of the big long-only funds are still fine. It’s just that they don’t hire that many people and turnover isn’t that high, so it’s harder to win these roles.

As always, the more specialized you can be, the better… find a niche like emerging market stocks or a specific industry or sub-industry and become the top expert there.

For the record, I wasn’t trying to be critical of your view. It just feels like every discussion of roles in the public equities realm nowadays is very defeatist. As someone that missed the track for private investing (at least until an MBA at a minimum), it gets a bit heavy to read continuously that your career path is in decline. So I was just curious if there was anywhere that you still viewed positively.

I agree with both views on the LO seats, hard to get and not going anywhere. I would also say that if you don’t mind investing in a very short term, market neutral style, that the multi-manager opportunity set is still quite robust.

Sure, understood. I would not take all of these predictions of doom too seriously – everyone out there, including me, looks at recent history and then tries to project it forward. But things can always change, and industries have gone from positive to negative or the reverse fairly quickly. Just look at all the people who thought investment banking would “die” after the 2008-2009 period, or everyone who thought tech startups would “never come back” after the dot-com crash, etc.

If you like what you’re doing and don’t want to change paths, sure, continue on with it. And yes, multi-manager funds can be a good option as well if you like that style of trading. We did cover MM funds on this site once, but haven’t focused on it too much since I prefer long-term, fundamental analysis/investing.

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Equity Research Overview

A complete overview of equity research and what it entails

What is Equity Research?

Equity research professionals are responsible for producing analyses, recommendations, and reports on investment opportunities that investment banks , institutions, or their clients may be interested in. The Equity Research Division is a group of analysts and associates at an investment banking ( sell-side ), an institution ( buy-side ), or an independent organization.

The main purpose of equity research is to provide investors with detailed financial analysis and recommendations on whether to buy, hold, or sell a particular investment. Banks often use equity research as a way of “supporting” their investment banking and sales & trading clients, by providing timely, high-quality information and analysis.

How are Equity Research Divisions Organized?

If you’re looking for a career in equity research,  then it’s important to know that it’s a fairly flat organizational structure (unlike the hierarchy in investment banking) and the two main positions are Associate and Analyst.  Unlike other areas of corporate finance, the Associate position is more junior and the Analyst position is more senior.  Typically, an associate (or multiple associates) work for one Analyst, who has overall responsibility for covering a group of companies.

Analysts are usually divided into industry sectors to cover similar companies within an industry.  Most sectors have a lot of specialized knowledge required, so it makes sense for an analyst to stick to one industry where they can become experts.

Some of the largest sectors in equity research include consumer staples, consumer discretionary, internet, healthcare, energy, mining, technology, and telecommunications.  A team of associates and an analyst will usually cover at least 5 companies and could cover as many as 15, depending on their seniority, the sizes of the companies, and the industry.  More: see our financial analyst guide .

What Do Equity Research Analysts/Associates Do?

The main work in equity research is producing reports.  Ranging from quick updates or “flash reports” to in-depth, “initiating coverage” reports, the job of an equity research associate or analyst is to constantly be publishing. Another big part of the job (discussed below) is financial modeling .

Working in equity research can be compared to what it’s like to be a university student.  There are lots of “assignments” or “papers” due with fairly regular deadlines, such as when a company releases quarterly results or announces something.

The contents of an equity research report typically include:

• Industry research (competitors, trends, etc.)
• Management overview and commentary
• Historical financial results
• Forecasting
• Recommendations

Each of these sections is broken down in more detail below.

Breaking Down an Equity Research Report

Below is an example of the cover of an equity research report from a bank.

1. Industry Research

In this section of an equity research report, there will be lots of information on trends and competition in the industry.  This is where frameworks like Porter’s Five Forces or a PEST analysis can come in handy to ensure that you’ve covered all the dynamics in the industry, including politics, economics, social trends, and technological innovation, to name a few.

2. Management Overview

It’s very important for anyone considering a potential investment in a company to understand the quality of its management team. This is a place where equity research analysts can add real value, since they have direct access to management on quarterly conference calls, “analyst day”, site visits, and other occasions.  Unlike individual investors, they can ask management direct questions about the business, and then do an assessment of their competence and relay that information back to investors.

3. Historical Financial Results

One of the core jobs of equity research is to analyze historical financial results and compare them to the guidance that was given, or compare them to the analyst’s expectations.  The performance of a stock is largely based on reality vs expectations, so it’s important for an analyst to analyze and understand if the actual historical results were below, at, or above market expectations.

To learn these equity research skills, see our financial analysis courses .

4. Forecasting

Forecasting financial results is more of an art than a science.  We’ve written about this extensively in our guides on how to be a good financial analyst , as well as providing a breakdown of financial modeling skills .

To summarize the points in those articles, there are two main ways of forecasting: top-down and bottom-up.

Top-down forecasting looks at the industry-first (its size, growth, pricing, etc.), then determines how much market share a company is likely to have, and finally, works down to revenue.

A bottom-up approach starts with the basic drivers of revenue, such as the number of customers, or the number of units sold, and then works up to a revenue forecast.  Professionals in equity research have to forecast quarterly data (or whatever frequency the company reports, e.g., semi-annually in Europe).

For more on this, see our complete financial modeling guide .

5. Valuation

The only thing that’s more of an art than forecasting is valuation.  Valuation methods take all the assumptions from the forecast and build on them with even more assumptions, such as a valuation multiple and/or a discount rate, both of which are very subjective.  Analysts in equity research have to be good at financial modeling and may build a 3 statement model  as well as DCF models or others as required.

Financial modeling takes practice, and we recommend browsing our specialized offering of professional financial modeling courses to become an expert.

6. Recommendations

In the recommendations section, the equity research analyst will have a target price (or price target) which tells investors where they expect the stock to be (typically) a year’s time.  In addition to this, they will often make an actual recommendation to investors about what they should do.  The language varies from bank to bank, but examples include:

• Buy / Overweight / Long
• Hold / Market weight / Neutral
• Sell / Underweight / Short

How to Get Into Equity Research

If you’re looking for a career in equity research, then you’ve come to the right place. You’ll have to be good at financial modeling, valuation, and data visualization (charts and graphs for reports), and we’ve got all the courses you need to excel in all these areas.

Our top recommendations for equity research training include the following resources:

• Financial modeling courses
• Valuation course
• Excel training
• Guide to being a good analyst
• See all career resources
• See all capital markets resources
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Equity Research Analyst Job Description Template

An equity researcher analyzes and provides financial insights on publicly-traded companies and/or sectors to facilitate investment decisions within fund allocations.

Trusted by leading brands and startups

The role of the researcher can be sell-side or buy-side. The former refers to analysts that are in a bank, or a broker, who offer paid research to institutional investors with a view to solicit the provision of further financial services. The latter will be analysts working directly within investment funds that generate investment ideas and strategies for its fund managers.

As the name suggests, this is a role traditionally applied to the equity class of assets. However similar research roles do exist within the commodity and fixed income space. The job description below can be tweaked to apply to such roles.

One quirk of equity research is that an analyst is not an entry-level position, as is a common title in other banking roles. An associate is actually the most junior position within the team and acts as an assistant to the analyst, who will have their name directly attributed to the published research reports.

Equity Research Analyst - Job Description and Ad Template

Copy this template, and modify it as your own:

Company Introduction

{{Write a short and catchy paragraph about your company. Provide information about the company’s culture, perks, and benefits. Mention office hours, remote working possibilities, and anything else that makes your company interesting. Also frame where the team and role fits into the organisational structure, as research teams can have different coverage hierarchies.}}

Job Description: Sell-Side Equity Research

The Equity Research department provides independent and objective investment research to the global investment community. It collects and analyzes financial information for stocks within {{list coverage sectors}} . Analysts within this team use this data to build financial models to explore future scenarios of the stocks on a company and wider macroeconomic level.

The ideal candidate will combine a strong quantitative skill set with a range of qualitative skills in order to effectively communicate their research in writing and verbally to clients. In addition, we seek someone with the highest level of ethical integrity.

Responsibilities

Create and maintain earnings, valuation, and industrial models for {{allocated number of stocks, or the name of the industry to be covered}} .

Analyze data to identify emerging opportunities and risks, justifying your reasoning.

Provide BUY/SELL/HOLD recommendations and present findings to the investment committee.

Assist in writing research reports with your findings, to be published to the community and media.

Interact with institutional investors, communicating investment research and responding to requests for models and ad-hoc analysis.

Maintain constant coverage of industry-related news, trends, and developments. Disseminate your insight when appropriate to internal and external stakeholders.

Build relationships with investor relations teams of your portfolio companies. This will involve {{domestic and/or international}} travel.

Devise and perform your own primary research methods, keeping abreast of trends and sentiment in the market.

Liaise with internal sales and trading teams for responding to news, corporate action, and reporting events. You will be expected to maintain a procedure protocol for escalating emerging news.

Maintain a public image for the firm at conferences/events. Communicate the company’s research, building its brand and referring potential new clients.

{{Add other relevant responsibilities here}}

Skills and Qualifications

Bachelor’s degree in finance, economics, financial engineering, statistics, or econometrics

Profound understanding of equity markets on a global level. In addition, a deep understanding of fundamental analysis, financial modeling, asset allocation, and strategy research

Prior experience in financial services (2-4 years) within a “front office” role {{such as M&A, ECM, DCM, Sales & Trading or Equity Research}}

Advanced Excel proficiency. 3+ years of practical experience of using Excel for building and maintaining financial models

Platform experience within Bloomberg and {{one or more of: Morningstar Direct, Informa PSN, Facstet, Axioma, or Barra AEGIS}}

Excellent written and verbal communication skills. Proficiency for presenting and debating a point under pressure

CFA is a plus

{{Foreign languages desirable for roles in Europe or Asia}}

Series 7 and 86/87 license is a plus. Unlicensed candidates will be sponsored, but expected to complete accreditation within a short timeframe

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Hire a top equity research analyst now.

Toptal is a marketplace for top equity research analysts. Top companies and startups hire Equity Research freelancers from Toptal for their mission-critical projects.

Andy Vietor

Andy was recognized twice as an All-Star Analyst by the Wall Street Journal. He has been a strategist, operating executive, financier, and top-ranked industry analyst. As a freelancer, Andy advises a range of companies—from early-stage and middle-market to large caps—delivering customized solutions including effective investor presentations, dynamic financial models, and project finance structuring.

Yiannis Ritsios, CFA

Yiannis is an experienced investment professional who manages assets for institutional investors globally and has extensive experience in financial analysis, valuation, equity research, and investment management. He has worked on M&A projects for large corporations and startup funding for the European Commission. With an MBA from Imperial College London, Yiannis began freelancing to help top management, investors, and entrepreneurs create value and sustainable growth.

Thomas Robb

Thomas delivered actionable solutions and insights to multi-billion dollar clients across the tech and software industries as a senior equity research associate at Morgan Stanley. As an entrepreneur, he understands the importance of taking extreme ownership of projects and enjoys working with executives to grow their businesses through financial modeling, competitive market analysis, and creative problem-solving.

Discover More Equity Research Analysts in the Toptal Network

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Equity Research Analyst

Published on :

21 Aug, 2024

Blog Author :

Wallstreetmojo Team

Edited by :

Ashish Kumar Srivastav

Reviewed by :

Dheeraj Vaidya

What Is An Equity Research Analyst?

An equity Research Analyst refers to the person who analyzes financial information along with the different trends of the different organizations or the different industries and then gives an opinion in his equity research report based on analysis conduct, thereby helping the clients make the goods investment decisions.

They are financial experts who are experienced and skilled with knowledge enough to understand various trends and scenarios that show the current financial condition of companies are their future potential. They make projections and analyses that help stakeholders and management take important investment-related decisions. They are adept at interpreting financial data and giving opinions on them.  

Table of contents

Equity research analyst explained, classification, how to become, who provides equity research analyst jobs, exit opportunities.

• Equity Research Analyst Vs Investment Banker

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The equity research analysts are professionals in the field of finance who are experts in handling and interpreting financial data from financial statements, annual reports , publications, etc. They analyse past trends, current conditions and make future projection regarding investments in stocks or equity of businesses.

The primary role of an Equity research analyst is to recommend buying, selling, or holding any financial securities. They prepare a report based on the financial statement of a company. They analyze costing, revenue , risk in the company. An analyst also keeps track of various activities in a company like an industrial seminar, investor day event, investor meeting.

They gather all information and analysis to build a financial model. These models are used to find the value of a company and analyze its financial position; it is based on some assumptions. It helps to predict the future financial performance of the country.  An output of the model has the recommendation to buy, sell, or hold with a potential return from the current price. Assumptions made differ from analyst to analyst, and every analyst has a different specification.

Thus, equity research analyst positions is very crucial in driving the market or the economy towards long term investments and also mobilising funds in the right direction. However, it is necessary that they act in the best interest of their clients so that the best results can be achieved by harnessing the knowledge and expertise of these professionals.

Equity research analysts can be classified as follow:-

#1 - Buy Side

In buy-side companies have research analysts to help them with investment purposes. They monitor the securities daily and access the impact of macroeconomic news on the long-term performance of the stocks. Additionally, they are in touch with the sell-side research analyst for stock advice and updates.

#2 - Sell-Side

The analysis is done to advise the client on the current investment opportunities on the sell-side. They analyze equities to recommend buying or selling particular financial security. These tips are provided to the agent or relationship manager of a brokerage firm and bank in the form of reports prepared by the research analyst.

The below mentioned chart will give a snapshot of the career path for these equity research analyst positions . However, let us also lean the details as given below.  

Equity Research career starts as a junior analyst and then moves to the Equity Associates roles.

• As a junior analyst, you are responsible for almost everything, including data entry jobs and preparing the companies' financial model. Your main role is to support the Associate in his daily tasks.
• The associate manages either one or maybe two to three junior analysts and ensures the timely completion of the results updates, financial models, equity research reports for the senior analyst.
•  The Senior Analyst role is mostly client-facing, wherein they are expected to call and meet the fund managers and regularly communicate about their investment thesis and its rationale.

The equity research analyst compensation in this kind of job profile will depend on the location, qualification, and experience, the type of company where they are employed etc. However, an approximate breakdown of the salary levels are as follows:

Professionals joining an entry level job can expect a salary of $60000 to $100000, on an annual basis. The professionals who are already at mid-level may expect from $80000 to $150000, yearly. The senior level employees working at reputed financial institutions and also having a good track record may expect $150000 to $300000 annually, excluding bonus. The bonus can be based on performances of individuals, or on the basis of commission, profit share or any other benefits. The more profits the employers earn due to their recommendation, the higher will be the amount of bonus. However, equity research analyst compensation is usually less than the investment bankers since the latter has higher and complex responsibility levels.  

The key here in equity research analyst vacancy is to be able to work well under pressure. You should be good at research and analytical stuff. For a Junior equity research analyst, a bachelor’s degree in accounting may be sufficient. However, you should be able to demonstrate your passion for finance. Taking CFA exams is one plus.

The equity analysts are experienced professionals in the field of finance. Their expertise has a varied range. Let us study each of them in details, as given below.

#1 - Awesome in Financial analysis

In an equity research analyst vacancy , you are expected to be excellent in financial ratio analysis . You should be able to fully understand and analyze the SEC filings and present those in excel.

#2 - Excellent Communication Skills

It is important to have great communication and writing skills. Equity Analysts are expected to publish their investment reports at frequent intervals, and they should be able to communicate well with their clients.

# 3 - Awesome in Financial Modeling

Financial modeling involves forecasting the company's financials and estimating the fair value using DCF Valuation , trading multiple valuations and other valuation tools. As an Equity analyst, be prepared to be awesome in financial modeling.

#4 - You should be Great at Excel

Mostly, you will work under intense pressure with deadlines, especially during earning seasons (quarterly and annual result announcements. Clients expect you to come up with the analysis quickly and accurately. Therefore, you must take every measure to save time. Equity Analysts are experts at excel, and they can pull reports and prepare financial models and charts in no time.

These analysts are hired in the following sectors -

• Stock Brokerage
• Mutual Funds
• Wealth Management Firms
• Credit Rating Firms
• Media Companies
• DataBase Firms

As discussed earlier, you may work as a sell-side equity research analyst for a couple of years, get promoted as an associate, and move up the chain. However, if you have decided to quit equity research, the following options may be open for you –

# 1 - Get into Buy-Side Roles

Here you would be basically working for the hedge fund managers or the portfolio managers . The skillset for both is similar as you analyze investments and make recommendations. The buy-side offers an even better lifestyle and investing.

#2 - Get into Investment Banking

Many research analysts move into Investment Banking roles like IPO, M&A, etc. Most of the skills required for Investment Banking are the same as that of equity research and offer a lucrative career due to its dynamic nature.

#3 - Get into Private Equity

Getting into  private equity  could be another exit option. However, this can get tough as you are not working on transactions at equity research jobs and hence the profile differs a bit. That does not mean it is impossible to get into PE.  As a research analyst, you would be well versed with investment research only that this will be respect to private companies and not public.

Equity Research Analyst Vs Investment Banker

Both the above roles are in the field of finance and involve a lot of responsibility and experience. They are key players in the financial market who have the ability to provide a lot of insight in the investment scenario. Let us study the differences of both in details.

• The main focus of the equity research analyst roles is the analysis and recommendation of stocks and shares of companies, while the latter mainly concentrates on advisory services in the field of investments, merger , acquisition, capital requirements and raising of capital from investors, portfolio diversification and return levels, etc.
• The equity research analyst roles involves more of interaction with fund managers, investors and other stakeholders of the business. But the latter has to interact and coordinate more with institutional investors , large financial entities and other corporate clients.
• The former’s main aim is to do analysis and forecasting, which helps in predicting the future trends and potential for business growth and its possible opportunities. The latter however helps in structuring and negotiation of financial deals and closing them in a profitable manner in the best interests of all parties.

Thus, we see that both play a very crucial role and have a lot of responsibility in the financial sector. Their skills, experience and interest in the job can make a lot of difference in the market regarding growing and channelizing of valuable resources as and when needed.

This article is a guide to what is Equity Research Analysts. We explain the career, salary, how to become, skills & exit opportunities. You can learn more about Equity Research from the following articles –

• Equity Research Interview Questions
• Get Into Equity Research
• Top Skills required for Equity Research

Equity Research: A Complete Beginner’s Guide

A Former JP Morgan Equity Analyst gives a basic overview of what equity research is, different job roles, important skills, how to approach completing a research report, and exit opportunities. It also introduces some of the basic equity research vocabulary.

By Created Kacper Borowiec (2019-01-16 21:16:00)

An exhaustive but very well-thought catalog of tutorials for individuals looking for an introduction to equity research.

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What does an Equity Research Analyst do?

An equity research analyst is responsible for analyzing stock and securities markets, generating reports and performance projections, and advising clients on the best options for clients' financial portfolios. Equity research analysts should have excellent knowledge of the current stock market trends, especially the availability of the securities to identify investments that would sell in public. They evaluate the clients' needs out of their investment interests and risk appetite. An equity research analyst must be highly-communicative and analytical, especially on responding to clients' inquiries and concerns and informing investment managers on the stock and securities available.

• Responsibilities
• Skills And Traits
• Comparisions
• Types of Equity Research Analyst

Equity research analyst responsibilities

An equity research analyst plays a significant role in evaluating investment opportunities and providing performance projections for clients. They conduct market research, perform fundamental and technical analysis, and develop financial models for various sectors such as healthcare, entertainment, and technology. They also interpret and integrate political and regulatory changes into industry forecasts and valuation models. Additionally, they communicate investment recommendations and contribute to portfolio management processes. As Octavian Ionici PhD from American University states, "Being able to articulate what sparked their interest in the financial field and why they are interested in a chosen role will be an advantage during the hiring process."

Here are examples of responsibilities from real equity research analyst resumes:

• Manage trade executions and broker relationships for all portfolio positions across several banks, prime brokerage accounts and electronic commodities exchanges.
• Perform bottom-up fundamental analysis covering U.S. and European equities focuse on value.
• Experience in client presentation of investment ideas and are responsible of generating detail PowerPoint slides.
• Propose investment recommendations (buy/sell equity securities) base upon a combination of fundamental qualitative and quantitative analysis.
• Support activities including industry analysis, company specific competitive analysis, risk assessment, management assessment and valuations like DCF analysis.
• Develop analytical tools for the traders to analyse volatility and correlation using VBA and SQL.
• Utilize IBM SPSS, a statistical analytic tool, to analyze raw data collect from university applicants.
• Used SPSS to process survey data, generate factor analysis and cluster analysis to determine the internal association.
• Utilize Matlab for calculations and plots relevant for finding detection ranges of submarines and analyzing the sound waves that propagate underwater.
• Participate in securities research program.
• Create and present PowerPoint presentations to both regional and national judg
• Perform fundamental analyses using macro data and company/industry trends to generate actionable investment/trading ideas.
• Provide macro and quantitative analysis to identify investment opportunities for the firm's investment decision making processes.
• Generate, diligence and continuously develop fundamental investment advisory research of public equities as an industry generalist.
• Screen and pitch buying/selling opportunities using extensive DCF and relative value models modify for the unique characteristics of individual sectors.

Equity research analyst skills and personality traits

We calculated that 14 % of Equity Research Analysts are proficient in Financial Models , Macro , and Securities . They’re also known for soft skills such as Computer skills , Math skills , and Analytical skills .

We break down the percentage of Equity Research Analysts that have these skills listed on their resume here:

Constructed and maintained financial models, wrote company and industry-related research notes for publication, and attended industry and company-related briefings.

Conducted macro & micro-economic analyses to identify market trends, industry conditions.

Analyzed potential securities using fundamental analysis and valuation techniques such as Discounted Cash Flow and Relative valuation model.

Monitored current positions in equity portfolios and communicated relevant issues impacting stock holdings to portfolio managers.

Perform bottom-up fundamental analysis covering U.S. and European equities focused on value.

Research methodology was primarily fundamental analysis coupled with a top-down outlook on the economic, competitive, regulatory and legal environments.

"financial models," "macro," and "securities" are among the most common skills that equity research analysts use at work. You can find even more equity research analyst responsibilities below, including:

Computer skills. To carry out their duties, the most important skill for an equity research analyst to have is computer skills. Their role and responsibilities require that "financial analysts must be adept at using software to analyze financial data and trends, create portfolios, and make forecasts." Equity research analysts often use computer skills in their day-to-day job, as shown by this real resume: "established equity research coverage of computer services companies for a regional brokerage firm. "

Math skills. Another essential skill to perform equity research analyst duties is math skills. Equity research analysts responsibilities require that "financial analysts use mathematics to estimate the value of financial securities." Equity research analysts also use math skills in their role according to a real resume snippet: "value-based quantitative analysis and qualitative due diligence on current positions and potential prospects. "

Analytical skills. equity research analysts are also known for analytical skills, which are critical to their duties. You can see how this skill relates to equity research analyst responsibilities, because "financial analysts must evaluate a range of information in finding profitable investments." An equity research analyst resume example shows how analytical skills is used in the workplace: "provide ancillary analytic support for growth equity co-investment opportunities by conducting market research and financial statementand financial multiple analysis. "

Communication skills. For certain equity research analyst responsibilities to be completed, the job requires competence in "communication skills." The day-to-day duties of an equity research analyst rely on this skill, as "financial analysts must be able to clearly explain their recommendations to clients." For example, this snippet was taken directly from a resume about how this skill applies to what equity research analysts do: "generated positive alpha in multiple sectors, including financial services, utilities, telecommunication services, and real estate investment trusts. "

Detail oriented. A commonly-found skill in equity research analyst job descriptions, "detail oriented" is essential to what equity research analysts do. Equity research analyst responsibilities rely on this skill because "financial analysts must pay attention when reviewing a possible investment, as even small issues may have large implications for its health." You can also see how equity research analyst duties rely on detail oriented in this resume example: "analyzed historical financial data and developed detailed financial forecasts. "

All equity research analyst skills

The three companies that hire the most equity research analysts are:

• Bank of America 24 equity research analysts jobs
• JPMorgan Chase & Co. 15 equity research analysts jobs
• Citi 11 equity research analysts jobs

Choose from 10+ customizable equity research analyst resume templates

Compare different equity research analysts

Equity research analyst vs. finance professional.

The primary job of finance professionals is to provide financial services using their knowledge of finance, tax laws, and accounting. These professionals typically help with corporate finance, personal finance, or both. Their duties include helping clients develop financial plans that will ensure their financial stability, developing the company's financial strategy, and forecasting corporate profits and losses. Additionally, finance professionals are responsible for negotiating credit lines, preparing financial statements, and working closely with outside auditors. To become successful in this role, you need to have strong customer service and analytical skills .

There are some key differences in the responsibilities of each position. For example, equity research analyst responsibilities require skills like "financial models," "macro," "equity portfolio," and "fundamental analysis." Meanwhile a typical finance professional has skills in areas such as "excellent interpersonal," "strong work ethic," "financial objectives," and "financial products." This difference in skills reveals the differences in what each career does.

Equity research analyst vs. Investment associate

An investment associate's primary role is to review a company's financial data, recommend investment strategies, oversee the distribution of stocks, and calculate possible risks for business mergers. They also serve as a mediator during agreements between companies during takeovers, monitors stock inventory, sell stocks, and details all financial transactions. In the course of these responsibilities, an investment associate provides administrative support and timely response to client requests as needed, acting as an additional point of communication for clients.

While some skills are similar in these professions, other skills aren't so similar. For example, resumes show us that equity research analyst responsibilities requires skills like "equity portfolio," "fundamental analysis," "technology sector," and "fundamental research." But an investment associate might use other skills in their typical duties, such as, "customer service," "client service," "client relationships," and "wealth management."

Equity research analyst vs. Analyst internship

An analyst internship is a student program where an intern is assigned to assist analyst professionals by analyzing business goals, objectives, and needs. Analyst interns assist in the planning and designing of business processes and suggest recommendations for improvement. They conduct research and analysis to support business operations and resolve issues using systems and data. They also help estimate the costs and benefits of multiple business actions and help the business organization launch new initiatives.

The required skills of the two careers differ considerably. For example, equity research analysts are more likely to have skills like "macro," "securities," "equity portfolio," and "technology sector." But a analyst internship is more likely to have skills like "financial statements," "data analysis," "management system," and "python."

Equity research analyst vs. Finance management analyst

A finance management analyst specializes in performing extensive research and analysis to devise strategies that can help a company achieve its long-term financial goals. Their responsibilities typically revolve around having an in-depth understanding of the company and its services, gathering and reviewing its financial history and other portfolios, and determining investment opportunities to earn a significant profit. Furthermore, a finance management analyst must report their findings and present action plans, providing a comprehensive explanation to officials, all while adhering to the company's policies and regulations.

Even though a few skill sets overlap between equity research analysts and finance management analysts, there are some differences that are important to note. For one, an equity research analyst might have more use for skills like "macro," "equity portfolio," "fundamental analysis," and "due diligence." Meanwhile, some responsibilities of finance management analysts require skills like "financial management," "financial issues," "management reports," and "financial policies. "

Types of equity research analyst

• Finance Analyst

Research Analyst

• Pricing Analyst
• Investment Analyst
• Contract Analyst

Updated June 25, 2024

Editorial Staff

The Zippia Research Team has spent countless hours reviewing resumes, job postings, and government data to determine what goes into getting a job in each phase of life. Professional writers and data scientists comprise the Zippia Research Team.

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How to Become an Equity Research Analyst: A Complete Guide

October 17, 2016

I’ve already written more than 10 articles on careers in equity research analysis .  But, I want you to know how to become an equity research analyst. So, this guide is dedicated to you, my dear friend.

Make use of this guide and excel as an equity research analyst.

1. Profiling an Equity Research Analyst

A. who is an equity analyst.

An equity analyst is someone who studies and analyzes financial information and trends for an organization or an industry.

An ER analyst reviews stocks, bonds, and other instruments and writes an unbiased, honest equity research report.

He studies public records of companies to forecast the organization’s impending financial needs.

He writes reports on the organization’s finances and defines the business’s investment potential by giving ratings, like buy, sell, or hold.

He is also accountable for analyzing the budget and making a strategy to get out of debt if the organization is in a poor financial state.

He typically uses technical analysis or fundamental analysis to report, which securities or stocks are expected to be profitable and which are not.

In conclusion, he helps his clients in making good investment decisions based on his reports.

b. What work do you have to do?

As an equity analyst, your work would typically include reviewing of the annual statements (the balance sheet, the profit and loss statement, the cash flow statement, the notes to accounts, etc.), revenue figures and future projections, intelligence concerning key clients, amount of debt the company is carrying, any legal liabilities, present market trends, and the products or services presented by the firm.

After studying all this in detail and analyzing the data, you will have to prepare a crisp but detailed ER report, which will help your clients make optimal decisions about their investments.

The majority of your time will be spent on research. The rest of your time will be spent on modeling and report writing.

It might take some time upfront to build financial models in the first place but once you are done with it you just make minor tweaks and appraise it for earnings announcements and significant channel checks.

In a typical hedge fund or asset management firm you have 1 head person taking the decisions and everyone else below him/her implementing and trying to come up with different ideas.

There is a quasi-mid-level where you could have senior analysts and then just analysts, but it’s much less categorized than say, Investment Banking .

Equity research is more about how good you are at servicing clients and giving insightful ideas – here we don’t need an assembly of people as you do with Mergers & Acquisitions deals.

There are usually 2 – 3 Associates and 1 Senior Analyst on each sector/industry team – so if we’re covering 20 companies, each associate might be covering about 5 companies.

c. Where can you work?

As an equity analyst you would typically work in a brokerage house, securities firm, ER firms or investment banks , commercial or retail banks, NBFCs (non-banking financial corporations), insurance companies, mutual fund companies, pension fund companies, or other such companies.

As an ER analyst, you will have to work on both the sell-side as well as the buy-side.

As a sell-side analyst, you will typically work at an investment bank or with an independent research company, whereas as a buy-side researcher you typically will be working with hedge fund companies or financial management companies.

On the sell side , your research will be motivated by stock or share performance and you will have to develop cash-flow models and earnings of the organizations you follow in a particular sector or industry.

On the buy-side, you will most likely follow some 20 to 25 organizations in two to three industries or sectors.

Here, you will have to focus more on providing relevant intelligence to various portfolio managers who take care of investments for the client.  

ER analysts can find jobs through professional recruiters or job consultants who typically specialize in recruiting in investment banks, private equity , and industry.

Job bulletins and classified advertisements are supplementary methods for finding appropriate jobs in this field.

What prospective employers really seek is for your intangible skill sets to be made tangible .

This realization should empower you significantly because, with this framework, you can concentrate on giving concrete proof that you have the skill set required for being an effective and good analyst.

d. How to give a good interview and get a job

When applying for jobs with these investment banking firms, remember that while covering letters for your resume might be just a procedure for some other jobs, here they’re a reflection of your writing abilities . 

Don’t underestimate the importance the company’s Human Resources will give to them.

In addition to the standard Human Resources generated interview questions, be ready to speak about stocks you like and explain why you like them .

Frankly speaking, remember one important thing – The stocks you choose don’t matter as much as the thought process behind the choice, and what explanation you provide .

You will have to be able to portray a stock in a way that validates sound thinking and an effective thought process.

After all, your prospective job revolves around which stocks you choose to pick and talk about.

Also, be prepared to talk about your opinions on the capital markets and related current topics.

Remember to have a view in everything you say but do not be indecisive, and don’t act like a ‘know-it-all’ either.

Organizations are also looking for those candidates with rational curiosity: people who want to understand every minute detail about an organization or industry and the implications on their customer’s portfolios.

e. How much can you earn?

The average emolument for a typical equity research analyst in the USA is around USD 70,000 to 100,000, while the top ER analysts can earn more than USD 160,000 a year, according to the U.S. BLS (Bureau of Labour Statistics). These numbers include only salary, and not bonuses, benefits, or perks.

Bonuses usually depend on how profitable your company or your team was during the year, plus some performance element measuring how well your stock picks did for the year.

Ranges of base salary can vary widely from company to company, but the average bonus in a typical year is in the range of 25% to 50% of the base.

When it comes to overall earnings an entry-level ER analyst or associate can earn anywhere from USD 80,000 and USD 250,000.

Senior employees such as vice presidents or senior managers can make somewhere in the range of USD 500,000 to USD 750,000, while very senior people like partners or managing directors can make anywhere between USD 800,000 to USD 1.5 million.

Star analysts have been known to take home literally USD 3 million or USD 4 million a year based on their success.

f. How much can you grow?

Advancement typically comes when you leave to join another organization and they promote you, or when you leave to go start your own firm.

Senior Analysts have cozy jobs and few leave readily – but if you do happen to leave and you’re well-respected in the industry, you might get an opportunity to cover your own names.

And if you are able to build a good standing among investors, someone else might just hire you – whether it’s another investment banking firm.

Many times analysts have a difficult time progressing as they tend to bury themselves in Excel sheets all day long– but that’s not the correct approach as no one cares how fancy or elaborate your model is.

Your clients will only care about how insightful your thoughts and suggestions are and how much they understand, like, and trust you.

So you need to get out of the bubble and go out in the industry to meet real people, shape up a reputation, and make worthy decisions if you want to advance in this segment and become a senior equity research analyst.

2. How to Become an Equity Research Analyst

a. Skill sets required

I. education.

For becoming an ER analyst, you should typically have a bachelor’s degree, master’s degree, or a diploma in finance, business administration, or accounting from a reputed university.

Further skill sets required to flourish in this career include good communication skills (both written as well as spoken), an analytical mindset, decisive thinking, and excellent research skills.

If you can combine both – excellent communication, financial analysis , and data analysis skills effectively, you can be very successful in this field like many equity research analysts.

ii. Extra courses (Professional certificates)

Apart from your formal education, for most equity research analysts, it is always a good idea to explore other avenues wherein you can enhance your technical knowledge.

There are various additional professional training courses where you can attend either classroom sessions or virtual classrooms where you can hone your equity research skills and learn various new techniques.

Most of these training courses cover the basics of equity research report writing such as – assessing industry attractiveness, financial modeling , equity valuation techniques, and equity and investment report writing.

Professional certification will seriously increase your chances of getting employment as an equity analyst after completing a formal graduate degree program.

There are institutes such as the CFA Institute that offer the Chartered Financial Analyst credential to contenders who meet the educational necessities and pass three exams.

The exams cover markets, financial accounting, securities analysis, economics, portfolio management, corporate finance , and asset valuation.

Apart from formal education and extra courses, a very important aspect of your learning will be ‘On the job’ training.

You will almost immediately find yourself interacting with portfolio managers, hedge fund managers, the company’s internal salespeople, and traders, as well as communicating the senior analyst’s investment theory after the organization reports its financials .

Important thing is to keep your eyes and ears open and absorb as much as possible.

iii. Internship

A formal graduate degree program might provide the candidate with a chance to complete an internship with a professional investment firm.

These internship programs offer the candidates with ‘hands-on’ guidance in the financial sector and particularly equity analysis.

Employers and other research associates when making recruitment decisions for equity research jobs definitely prefer internship experience in other companies.

A good and successful internship stint can give a lot of ‘on-the-job experience’ and confidence to fresh analysts and can lead to good employment opportunities after finishing their formal MBA program.

This is also why those without any kind of experience in investment banks find it difficult to get hired for research analyst jobs.

I would really insist that all beginners (with no investment banking equity research experience) should always try to seek internships with good and reputed organizations where they can learn new skills and also hone their existing skills.

iv. Understanding of the industry and economy

As an ER analyst, you will have to continually identify and analyze financial information, strategic issues, and trends that affect companies, industries, and markets on a local and universal scale.

You will have to analyze macro factors, various sectors or industries as well as the organizations’ financial results to recognize investment opportunities.

These insights and investment ideas will be used by the readers of your report to develop their strategies and take investment decisions.

Since ER analysts typically focus on a small set of stocks (5-20) within select industries or geographic regions, they become specialists in those specific companies and industries that they evaluate or follow.

Analysts need to comprehend everything about their ‘coverage land’ to give investment endorsements.

Equity research analysts must be conversant with the business regulations and regime policies within the country to decide how it will affect the market environment and business in general.

The more you understand the industries in detail, the easier it will be for you to decipher market dynamics.

b. The attitude he should have to work as a research associate:

 i. patience.

One of the most underrated traits for being a good equity research associate is patience!

Remember haste makes waste.

Your customers trust you and will be basing their buy-sell decisions on your recommendations.

You have to make sure that you do not rush into things but ponder every small detail and try to decipher every tiny bit of intelligence.

You will have to meet various industry participants to talk to them and understand the pulse of the market.

Remember these are professionals and will always be busy. It might happen that even after giving you appointments, they might cancel them due to impending work or meetings.

They might postpone meetings and make you wait for hours together.

But remember that speaking to these experts can give you that edge when you are writing your equity research report .

So you need to pull in all your patience and make sure you don’t divert from your course. If you are persistent and patient, you will be able to eventually get all the interviews you are looking for and add value to your equity research reports.

You will also need all your patience when you are building equity research models .

These models can go from a single sheet to multiple sheets. You will have to link numerous cells and add multiple formulae to create your final model.

Remember to be very patient and concentrate very hard when you are building your models.

One small mistake or one wrong formula can upset your entire model.

Finding that mistake will be a nightmare. It will be like finding a pin in a haystack! So be as patient as possible!

ii. Open to learning all the time

Again it might sound very generic if I say that you need to be open to learning all the time. But believe me, life is all about learning every day .

You have to keep your eyes and ears open all the time and absorb as much as possible.

Another important tip is to read, read, read and read some more.

Read investment reports, read company annual reports, read press releases, read reports on geopolitics, read reports on mergers and acquisitions, read reports on the economy.

In short, read anything that sparks your curiosity, even fiction novels …It’ll help you ignite your mind and thinking out of the box capabilities.

Also, read the daily news and that too from as many sources as possible every single day.

Also, you should start to develop a view of the news and how it affects various organizations, industries, businesses, countries, and even individuals.

The most significant skill set for any ER analyst is to understand and decipher the information. The analyst who can understand intelligence the best and act decisively on that intelligence wins the day.

iii. Understand the subject properly – go into the depth of the matter

For you to provide a recommendation or a direction based on your findings, you will have to be very certain about it.

You’ll have to be able to argue your case soundly for a valuation, in clear and concise terms that your customer can understand.

You need to understand the subject properly and really get into the depth of the matter.

Remember shortcuts will never help you in the long run .

You have to make sure that every statement that you provide in your report has a ‘why’ and ‘so what’ element attached to it.

The reader should be able to understand very clearly what you have proposed and what would happen if he follows your direction.

iv. Verify every piece of information you get

The one thing that is required of you is to be able to establish a passion for investing.

Once you have that passion, you will make sure that whatever you present is of utmost quality and integrity.

To do so you have to make sure that every piece of information that you gather is verified from reliable sources.

Speculation and rumors have no place in this research or rather in any type of research .

You will be collecting intelligence from various sources, so you’ll have to be careful about the quality and authenticity of the source of the information.

It is always better to specify the source of information in your report to add validation to your intelligence.

v. Avoid Conflict of Interest

Conflict of interest can be a major concern in equity research.

Many research firms that create equity reports for their customers are also investment firms, aggressively selling the same shares to them.

This activity makes it very hard to believe that the intelligence provided is completely free of bias.

Hence you have to be very careful that there is no real conflict of interest, and if there is, you have to make sure that it is clearly specified in the report.

c. What should his approach be?

I. he should be unbiased.

You should make sure that the contents of the equity research report should be unbiased.

It should not be partial towards any particular company or a business house.

You have to remember that a lot of people will be making investment decisions based on your reporting.

They trust you and your reporting and you are obliged to provide them with an unbiased opinion.

The more trust you can build with your readers, the more they will vouch for your reports.

ii. Detailed as possible

While writing ER reports, presume that the person who reads is new to the company and he does not have any knowledge about its business.

So, your report should include extensive information about the company, its products, key statements, its management, current market dynamics, future strategies of the company, growth estimates, and the probable risks faced by the organization.

You have to make sure that the information you present is detailed and covers all the above elements properly.

You should not leave any questions unanswered and the reader should not have to go looking for extra information after reading your report.

The best way to approach writing is to write your headlines and subheads first. A strong and impactful headline is critical to enticing readers into looking at your report in the first place.

Solid subheads help to keep the reader engaged, acting as guidelines to keep them go through the remainder of your report.

Make your subheads intriguing as well as informative. Once you’ve written your subheads, appraise them to see what the reader will comprehend if he or she reads only that segment of your report.

Is there a convincing story? Will they get the substance of your report?

iii. Should try to answer ‘so what’

The biggest mistake that most analysts make is just stating the facts in the reports. You have to remember that you are not a reporter but an analyst . The reader expects answers from you – not news!

They want you to give them direction. So you have to make sure that every piece of information you give, has a ‘so what’ attached to it.

For example: Just saying that ‘Company X will have a higher debt-equity ratio in the future as it is planning to take a huge long-term loan’ is not enough.

You have to tell the reader, what will happen because of this. According to you, is this a good strategy for the company or not? What effect will this have on the future revenues and share price of the company?

iv. Consider all the risks applicable

Every ER report should include current and future negative sector and organization happenings that might cause a danger to the investment decision.

Risks can be of various types – operational, financial, economic or connected to legal issues or regulatory procedures.

Though companies are obligated to disclose all the risks which could affect them in their statements, risks are many times subjective and difficult to quantify.

It is your job as an analyst to find out the various risk factors which can affect the performance of the company or the industry and report them in an unbiased manner.

Do not overlook any risk however small or insignificant it might look to you.

Let the readers decide if the risk is worth considering or not – you should report all the probable risks.

v. KISS – ‘Keep it simple and sweet’

This is the ‘Age of Minimalism’. So always remember the principle “less is more”.

This does not mean that you just give a brief snapshot, but explain the concept properly for the reader to make up his mind about the economic strength of the organization.

It means giving precise and relevant intelligence which will assist the reader in quickly comprehending the organization’s money health and take calculated decisions.

vi. Write in such a way that the reader understands clearly

Use simple language which everyone can understand. Do not unnecessarily go for fancy words or jargon which will send your readers running for a dictionary.

You should keep your sentences brief for the same reason you should keep the paragraphs short – they’re easier to read and comprehend.

Pick up any newspaper and observe the writing – you will see short paragraphs everywhere.

They do that to make reading easier, as your brain absorbs information better when it’s divided into small parts.

Every sentence must have one simple thought. More than that creates complications and invites uncertainty.

Another thing to remember is that; don’t keep writing similar stuff over and over again. In other words, write something once properly and definitively, rather than repeating it several times.

When you repeat yourself or keep writing the same stuff again and again, your readers might just go to sleep.

So I think I have tried to be as detailed and lucid as possible in this guide which will definitely help you to become the best ER analyst in the world. Again this is not a shortcut to success, but just a guide that will enable you to plan your journey toward the goal of becoming a very successful ER analyst.

I would like to wish you all the best in your quest to become a successful equity research associate.

Do feel free to send me any queries that you may have.

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Equity Research Analyst: A Comprehensive Guide to Career Path and Qualifications

Table of Contents

Introduction.

In the world of finance, equity research plays a pivotal role in providing valuable insights to investors, guiding them in making informed decisions regarding stocks and investments. This comprehensive guide will delve into the career path and qualifications required to excel in the field of equity research. Whether you’re a budding finance enthusiast or a seasoned professional looking to further your career, this article will equip you with the knowledge and tools needed to succeed in this dynamic and competitive industry.

Understanding Equity Research

What is equity research.

Equity research is the practice of analyzing various financial instruments, primarily stocks, to provide in-depth insights into their potential for investment. This involves evaluating a company’s financial performance, industry trends, and macroeconomic factors to make informed recommendations to clients or investment firms or wealth management companies.

The Role of an Equity Research Analyst

Key Responsibilities of an Equity Research Analyst:

• Financial Analysis: Equity research analysts are responsible for dissecting a company’s financial statements, including income statements, balance sheets, and cash flow statements. They assess the company’s financial health and performance over time.
• Industry Analysis: Understanding the dynamics of the industry or sector in which a company operates is essential. Analysts need to identify industry trends, potential risks, and growth opportunities that can impact a company’s stock price.
• Company Valuation: Analysts use various valuation models, such as discounted cash flow (DCF) analysis and price-to-earnings (P/E) ratios, to determine the intrinsic value of a company’s stock. This helps investors assess whether a stock is undervalued or overvalued.
• Recommendations: Based on their analysis, equity research analysts provide buy, sell, or hold recommendations for specific stocks. These recommendations are critical for investors looking to build or adjust their portfolios.
• Report Writing: Analysts produce detailed research reports that summarize their findings and recommendations. These reports are distributed to clients, including portfolio managers and individual investors.
• Client Interaction: Analysts often have direct contact with clients, discussing their research findings and providing insights into investment opportunities. Effective communication is crucial in this role.
• Market Monitoring: Equity research analysts continuously monitor financial markets, staying updated on news and events that may impact the stocks they cover. They need to react swiftly to changing market conditions.

Qualifications for a Career in Equity Research

Educational background.

To embark on a successful career in equity research, a strong educational foundation is essential. Typically, aspiring equity research analysts hold degrees in:

• Finance: A bachelor’s degree in finance or a related field provides a solid foundation.
• Master’s Degree: Many professionals pursue a Master of Business Administration (MBA) or a Master’s in Finance for advanced knowledge.
• Certifications: Obtaining professional certifications such as the Chartered Financial Analyst (CFA) designation adds credibility.

Skills Required for Success:

• Analytical Skills: The ability to dissect complex financial data and draw meaningful conclusions is at the core of this profession.
• Industry Knowledge: In-depth knowledge of specific industries or sectors is essential to understand the nuances that can affect a company’s performance.
• Financial Modeling: Proficiency in financial modeling and valuation techniques is crucial for accurate stock analysis.
• Communication Skills: Analysts must convey their findings and recommendations clearly and persuasively in both written reports and verbal communication.
• Quantitative Skills: Strong mathematical and statistical skills are valuable for data analysis and modeling.
• Economic Awareness: Understanding macroeconomic factors and how they influence financial markets is vital.
• Information Technology: Proficiency in using financial software and data analysis tools is beneficial.
• Ethical Conduct: Equity research analysts must adhere to ethical standards and regulations to maintain the integrity of their research.
• Financial Acumen: Proficiency in financial analysis, accounting, and valuation techniques is crucial.
• Analytical Skills: The ability to dissect complex data and draw meaningful conclusions.
• Research Skills: Conduct thorough research on companies and industries.
• Communication: Effective communication is key to conveying research findings clearly and concisely.

Gaining Experience

Experience is invaluable in equity research. Consider the following steps to gain a competitive edge:

• Internships: Seek internships at financial institutions or investment firms to gain hands-on experience.
• Entry-Level Positions: Begin your career as a research associate or junior analyst.
• Networking: Build a network of professionals in the finance industry to discover job opportunities.

Career Progression

Junior analyst.

As a junior analyst, you will assist senior analysts in research tasks, data collection, and financial modeling.

Senior Analyst

With experience, you can advance to a senior analyst role, where your responsibilities will expand to include making investment recommendations and leading research teams.

Portfolio Manager

For those aiming higher, becoming a portfolio manager allows you to oversee investment portfolios and make high-level investment decisions.

Requirements To Successful Equity Research Analyst

Challenges and Rewards:

While the role of an equity research analyst can be intellectually stimulating and financially rewarding, it comes with challenges. Analysts often work long hours, especially during earnings seasons or when major events affect the market. They also need to adapt to rapidly changing market conditions and regulatory requirements.

However, the rewards include the opportunity to have a significant impact on investment decisions, the potential for a lucrative career, and the satisfaction of continuously learning about finance, economics, and various industries.

Equity research is a challenging yet rewarding career path in the world of finance. Armed with the right qualifications, skills, and determination, you can carve out a successful journey in this industry. Remember, staying updated with market trends and continuously enhancing your knowledge is key to thriving in the competitive landscape of equity research.

Start your journey today, armed with the knowledge and determination to excel in the world of equity research. Your path to success begins with a solid educational foundation, a diverse skillset, and a commitment to continuous growth. Happy investing!

Knowledgiate Team

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2025 Truist Securities – Equity Research (ST&R) – Analyst

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The position is described below. If you want to apply, click the Apply Now button at the top or bottom of this page. After you click Apply Now and complete your application, you’ll be invited to create a profile, which will let you see your application status and any communications. If you already have a profile with us, you can log in to check status.

If you have a disability and need assistance with the application, you can request a reasonable accommodation. Send an email to  Accessibility  (accommodation requests only; other inquiries won’t receive a response).

Regular or Temporary:

Language Fluency:   English (Required)

Work Shift:

1st shift (United States of America)

Please review the following job description:

Corporate Overview: Truist Securities is the full-service corporate and investment banking arm of  Truist Financial Corporation  (NYSE: TFC), one of the nation’s largest banking organizations. Truist Securities, together with Commercial Real Estate, and Treasury & Payment Solutions, comprise Truist’s Corporate & Institutional Group, offering lending, capital markets and treasury management solutions to businesses, institutions, not-for-profit organizations and government entities. Founded more than 100 years ago, we offer large-firm capabilities in a boutique culture and value our vibrant workplace that reflects the diversity of the many communities we serve.  We pride ourselves on the career development of our employees. You’ll work alongside senior-level management on real deals right from the start. We encourage and reward you to take an active role in helping our clients achieve their goals.

Job Description: Truist Securities’ Corporate and Investment Banking Program begins with up to seven weeks of classroom instruction that consists of an introduction to capital markets, products and services, accounting, corporate finance, systems and financial modeling training designed to give Analysts all the tools they will need to be successful.  After the classroom training, Analysts will join a business group and play a meaningful role in supporting senior Sales, Trading & Research professionals.

The Analyst program provides the opportunity to gain exposure to a number of disciplines within Sales, Trading & Research. Assignments will be with one of our Sales, Trading & Research groups listed below, with the opportunity to interact with other groups and disciplines throughout the investment bank. Within each group, Analysts play a meaningful role in supporting internal and external clients.

Equity Research Equity Research is recommended for individuals with an interest in capital markets. Analysts will be embedded on a team(s) that covers a specific sector, under the watch of a senior research analyst (VP, Director or MD). Each team covers 10-35 stocks and is responsible for publishing research reports and providing “bespoke” content that is utilized by institutional investors during their investment process.  Additionally, published material is widely disseminated among the corporate community and industry contacts. The Analyst will support their assigned team during the production and writing of research reports, which include investment recommendations (BUY, SELL or HOLD); this may include: data analysis, building/maintaining financial models, and participation in conference calls with company management teams or institutional clients.

Location: Truist Securities is headquartered in Atlanta, GA, with offices throughout the U.S. in cities including Boston, Charlotte, Chicago, Dallas, Houston, Los Angeles, Miami, Nashville, Orlando, New York, San Francisco, and Washington D.C.

The majority of Sales, Trading & Research Analysts will be placed in placed in Atlanta, or New York. 

$100k comp across all locations The starting salary for this position is $100,000.

Minimum Requirements: •    Completed BA/BS degree with a scheduled graduation of December 2024 – May/June 2025 •    Proven analytical ability and attention to detail •    Solid leadership and interpersonal skills •    Superior written and oral communication skills •    Ability to work well in a fast-paced, team oriented environment

Preferred Requirements: •    Business or STEM (highly preferred) major •    Strong interest in finance and investment banking •    Prior completion of Accounting or Finance coursework •    High degree of academic and extracurricular achievement •    Willingness to commit substantial time and energy to the program

•    Overall GPA of 3.0

At this time, Truist will not sponsor an applicant for employment authorization, nor will we offer any immigration-related support for this position (including H-1B, F-1 OPT, F-1 STEM OPT, F-1 CPT, J-1, TN-1 or TN-2, E-3, or sponsorship for U.S. permanent residence.)

To learn more about Truist Securities’ Analyst positions, please visit the Student Programs section of our website at www.truistsecurities.com/about/careers.

General Description of Available Benefits for Eligible Employees of Truist Financial Corporation:  All regular teammates (not temporary or contingent workers) working 20 hours or more per week are eligible for benefits, though eligibility for specific benefits may be determined by the division of Truist offering the position. Truist offers medical, dental, vision, life insurance, disability, accidental death and dismemberment, tax-preferred savings accounts, and a 401k plan to teammates. Teammates also receive no less than 10 days of vacation (prorated based on date of hire and by full-time or part-time status) during their first year of employment, along with 10 sick days (also prorated), and paid holidays. For more details on Truist’s generous benefit plans, please visit  our Benefits site . Depending on the position and division, this job may also be eligible for Truist’s defined benefit pension plan, restricted stock units, and/or a deferred compensation plan. As you advance through the hiring process, you will also learn more about the specific benefits available for any non-temporary position for which you apply, based on full-time or part-time status, position, and division of work.

Truist supports a diverse workforce and is an Equal Opportunity Employer that does not discriminate against individuals on the basis of race, gender, color, religion, citizenship or national origin, age, sexual orientation, gender identity, disability, veteran status or other classification protected by law. Truist is a Drug Free Workplace.

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• Research in Bull & Bear Markets

How Equity Research Is Changing

• Who Pays for Research?
• The Role of Fee-Based Research

The Bottom Line

The changing role of equity research.

Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise is in personal finance and investing, and real estate.

The role of equity research is to provide information to the market. A lack of information creates inefficiencies that result in stocks being misrepresented (whether over or undervalued). Analysts use their expertise and spend a lot of time analyzing a stock, its industry, and its peer group to provide earnings and valuation estimates. Research is valuable because it fills information gaps so that each individual investor does not need to analyze every stock. This division of labor makes the market more efficient.

The title of this article is perhaps a bit misleading, because the role of equity research really hasn't changed since the first U.S. stock trade occurred under the buttonwood tree on Manhattan Island. What has changed is the economic and trading environments (e.g. the character of bull and bear markets) that influence research.

Key Takeaways

• Equity research is a key piece of Wall Street analysis, used by investors large and small to make better-informed investment decisions in the stock market.
• Often research is funded by institutional investors on a fee-basis or using soft dollars.
• Depending on whether the market is in a bull or bear mode, equity research has begun to shift its lens of analysis and the types of reports issued.

Research in Bull and Bear Markets

In every bull market, some excesses become apparent only in the bear market that follows. Whether it is dotcoms or organic foods, each age has its mania that distorts the normal functioning of the market. In a rush to make money, rationality is the first casualty. Investors rush to jump on the bandwagon and the market over-allocates capital to the "hot" sector(s). This herd mentality is the reason why bull markets have funded so many "me-too" ideas throughout history.

Research is a function of the market and is influenced by these swings. In a bull market, investment bankers , the media and investors pressure analysts to focus on the hot sectors. Some analysts morph into promoters as they ride the market. Those analysts that remain, rational practitioners, are ignored, and their research reports go unread.

Seeking to blame someone for investment losses is a normal event in bear markets. It happened in the 1930s, 1970s, during the dot com crash and the financial crisis of 2008, too. Some of the criticisms are deserved, but generally, the need to provide information about companies has not changed.

To discuss the role of research in today's market , we need to differentiate between Wall Street research and other research. The major brokerages provide Wall Street research—typically sell-side firms—both on and off Wall Street. Other research is produced by independent research firms and small boutique brokerage firms.

This differentiation is important. First, Wall Street research has become focused on large-cap , very liquid stocks, and ignores the majority of publicly traded stocks. To remain profitable, Wall Street firms have focused on big-cap stocks to generate highly lucrative investment banking deals and trade profits, but also face the daunting task of cutting costs.

Those companies that are likely to provide the research firms with sizable investment banking deals are the stocks that are determined worthy of being followed by the market. The stock's long-term investment potential is often secondary.

Other research is filling the information gap created by Wall Street. Independent research firms and boutique brokerage firms are providing research on the stocks that have been orphaned by Wall Street. This means that independent research firms are becoming a primary source of information on the majority of stocks, but investors are reluctant to pay for research because they don't know what they are paying for until well after the purchase. Unfortunately, not all research is worth buying, as the information can be inaccurate and misleading.

These days there is a great deal of research that is provided for free to clients via email. Even at essentially zero cost to the investor, a large majority of the research goes unread.

Who Pays for Research? Big Investors Do!

The ironic thing is that while research has proven to be valuable, individual investors do not seem to want to pay for it. This may be because, under the traditional system, brokerage houses provided research to gain and keep clients. Investors just had to ask their brokers for a report and received it at no charge. What seems to have gone unnoticed is that the investor commissions paid for that research.

A good indicator of the value of research is the amount institutional investors are willing to pay for it. Institutional investors typically hire their own analysts to gain a competitive edge over other investors. Although spending on equity research analysts has significantly declined in recent years, institutions may also pay for the sell-side research they receive (either with dollars or by giving the supplying brokerage firm trades to execute).

European regulations that went into effect in 2018, known as  MiFID II , require asset managers to fund external research from their own profit and loss account (P&L) or through research payments that are tracked with clear audit trails. This will lead to billing clients for research and trading separately.

The Role of Fee-Based Research

Fee-based research increases market efficiency and bridges the gap between investors who want research (without paying) and companies who realize that Wall Street is not likely to provide research on their stock. This research provides information to the widest possible audience at no charge to the reader because the subject company has funded the research.

It is important to differentiate between objective fee-based research and research that is promotional. Objective fee-based research is similar to the role of your doctor. You pay a doctor not to tell you that you feel good, but to give you their professional and truthful opinion of your condition.

Legitimate fee-based research is a professional and objective analysis and opinion of a company's investment potential. Promotional research is short on analysis and full of hype. One example of this is the email reports and misleading social media posts about the penny stocks that will supposedly triple in a short time.

Legitimate fee-based research firms have the following characteristics:

• They provide analytical, not promotional services.
• They are paid a set annual fee in cash; they do not accept any form of equity, which may cause conflicts of interest .
• They provide full and clear disclosure of the relationship between the company and the research firm so investors can evaluate objectivity.

Companies that engage a legitimate fee-based research firm to analyze their stock are trying to get information to investors and improve market efficiency.

Such a company is making the following important statements:

• It believes its shares are undervalued because investors are not aware of the company.
• It is aware that Wall Street is no longer an option.
• It believes that its investment potential can withstand objective analysis.

The National Investor Relations Institute (NIRI) was probably the first group to recognize the need for fee-based research. In January 2020, NIRI issued a letter emphasizing the need for small-cap companies to find alternatives to Wall Street research to get their information to investors.

The reputation and credibility of a company and research firm depends on the efforts they make to inform investors. A company does not want to be tarnished by being associated with unreliable or misleading research. Similarly, a research firm will only want to analyze companies that have strong fundamentals and long-term investment potential. Fee-based research continues to provide a professional and objective analysis of a company's investment potential, although the market for its services remains challenged in the current business environment.

CFA Institute. " MiFID II Equity Research Costs Survey ."

National Investor Relations Institute (NIRI). " NIRI Proposes Guidance on Company-sponsored Research ."

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Internship – Baird Trust Equity Research Analyst (Summer 2025)

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Are you looking to gain real world experience in a thriving, global financial services firm with an award-winning culture? Consider an internship and start building your career at Baird.

About our intern program: Our competitive intern program offers interns exposure to the business world and a meaningful work experience. Interns are treated as valuable team members while learning from experienced professionals in a collaborative, fun and dynamic environment. Baird’s summer intern program is a robust experience that includes an Intern Welcome Event, professional development, and networking with leaders and associates. Our interns have the opportunity to use a Baird Gives Back Day, a paid day to volunteer in the community. Our mentor program gives interns an opportunity to network throughout Baird and learn about all the areas of the firm. To learn more, check out this video .

Team Overview:

Baird Trust’s Investment Management team currently manages over $11.5 billion in two long-only strategies: Large Cap Equity and Equity Income. The team’s two portfolio managers and one analyst pursue a long-term business owner investment approach with an average holding period of over 10 years for each investment. The team aims to own high-quality, competitively advantaged businesses that are run by talented and honest management teams and that trade at a compelling price. Interns will be expected to be active participants in a variety of research projects and discussions throughout the summer. Learn more about the team here .

Internship location, availability and hours: Located in our downtown Louisville, KY office, the intern must be able to work full-time, 37.5-40 hours per week, during the summer. We are seeking a student who can start the end of May or early June 2025.

As a Baird Trust Equity Research Analyst Intern, you will:

• Shadow and participate in various research projects as directed by both analysts and portfolio managers
• Research specific stocks and industries based on current portfolio needs
• Assist with ongoing research projects which could include investigating companies we own, companies that are on our watch list, or various industries of interest
• Use FactSet data and information to supplement or create company and portfolio analysis
• Be prepared to present investment findings to the investment team and discuss the thesis on an idea, ultimately completing a full write-up of a stock and pitching it to the team
• Prepare and potentially participate in company and analyst meetings and conference calls

What we look for:

• Pursuing a bachelor’s degree in finance, accounting, business or another quantitative discipline, applied investment programs preferred
• Anticipated graduation date of May 2027
• Curiosity and interest in researching and understanding businesses, along with a general appreciation for the stock market and investing
• Strong interpersonal communication skills, both oral and written; A high level of professionalism is mandatory
• Strong organizational skills and the ability to work with minimal supervision, yet willingness to take direction; Detail-oriented individual with ability to handle multiple tasks simultaneously
• Advanced computer skills using Microsoft Word, Excel and PowerPoint; Knowledge of FactSet is a plus

What makes this opportunity great:

• Participate in meetings and discussions among the Baird Trust Investment Management team, giving an inside look into the job of an equity research analyst on Baird Trust’s two proprietary equity strategies
• Opportunity to add value and learn from a smaller, collegial investment team
• Gain hands-on, real world experience with a highly ranked organization
• Work within a unique culture that values diverse backgrounds and perspectives while emphasizing teamwork and a strong sense of partnership

Baird is not currently hiring individuals for this position who now or in the future require sponsorship for employment visa status .

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Wall Street Analysts Believe HealthEquity (HQY) Could Rally 36.59%: Here's is How to Trade

HealthEquity ( HQY Quick Quote HQY - Free Report ) closed the last trading session at $76.24, gaining 7.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $104.14 indicates a 36.6% upside potential.

The average comprises 14 short-term price targets ranging from a low of $92 to a high of $115, with a standard deviation of $6.14. While the lowest estimate indicates an increase of 20.7% from the current price level, the most optimistic estimate points to a 50.8% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.

However, an impressive consensus price target is not the only factor that indicates a potential upside in HQY. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.

Here's What You Should Know About Analysts' Price Targets

According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why HQY Could Witness a Solid Upside

There has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The Zacks Consensus Estimate for the current year has increased 4.1% over the past month, as three estimates have gone higher compared to no negative revision.

Moreover, HQY currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record , this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, while the consensus price target may not be a reliable indicator of how much HQY could gain, the direction of price movement it implies does appear to be a good guide.

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