What does an Equity Analyst do?
Published 3 min read
An equity analyst is a professional who performs financial analysis on potential and existing investments in order to provide recommendations to clients. Equity analysts typically work for banks, insurance companies, or investment firms. Their job is to identify opportunities and risks associated with investments in order to help their clients make informed decisions.
Equity analysts use a variety of tools to perform their analysis, including financial statements, company reports, and economic indicators. They must be able to interpret this information and communicate their findings in a clear and concise manner. In addition, equity analysts must be able to keep up with changes in the market and adapt their analysis accordingly.
Equity Analyst job duties include:
- Research and analyze economic, business, and financial conditions to determine the effect on stock prices
- Recommend stocks or bonds to buy or sell to clients
- Monitor stock portfolios and performance for clients
- Analyze financial statements of companies to determine stock value
- Select industries and companies for investment analysis
- Determine the advisability of buying or selling stocks based on economic conditions
- Follow trends in the stock market and economic indicators
- Meet with clients to discuss their investment goals and objectives
- Prepare reports detailing stock recommendations and investment strategies
Equity Analyst Job Requirements
An equity analyst is a professional who performs financial analysis of public companies in order to make investment recommendations. Equity analysts typically have a four-year degree in business, economics, or finance, and many also hold the Chartered Financial Analyst (CFA) designation. Prior experience working in the securities industry is often required.
Equity Analyst Skills
- Financial analysis
- Financial modeling
- Valuation
- Industry analysis
- Company analysis
- Financial statement analysis
- Equity research
- Financial forecasting
- Investment banking
- Asset management
- Hedge fund
- Private equity
Related: Top Equity Analyst Skills: Definition and Examples
How to become an Equity Analyst
An equity analyst is a professional who performs financial analysis of public companies in order to make investment recommendations. Equity analysts typically work for banks, mutual funds, or other financial institutions.
In order to become an equity analyst, one must first obtain a bachelor’s degree in business, economics, or a related field. Many equity analysts also have master’s degrees in business administration (MBA) or finance. After completing their education, equity analysts must pass the Chartered Financial Analyst (CFA) exam.
Once they have obtained their CFA designation, equity analysts can begin working in entry-level positions at banks or other financial institutions. With experience, they can eventually move up to senior positions such as managing director or partner.
Related: Equity Analyst Resume Example
Related: Equity Analyst Interview Questions (With Example Answers)