What does an Equity Research Analyst do?
Published 3 min read
An equity research analyst is a professional who performs financial analysis on potential investments in the stock market. They use their findings to provide recommendations to clients about whether or not to buy, sell, or hold a particular stock.
In order to make these recommendations, equity research analysts must have a strong understanding of both the companies they are analyzing and the overall stock market. They must be able to read and understand financial statements, as well as identify trends in the market. In addition, analysts must be able to effectively communicate their findings to clients in a clear and concise manner.
Equity Research Analyst job duties include:
- Research and analyze economic, industry, and company data
- Prepare reports on findings and present recommendations to clients
- Monitor stock market trends and activity
- Identify opportunities and make buy/sell recommendations
- Maintain knowledge of current economic and political conditions
- Stay up-to-date on company news and announcements
- Analyze financial statements and annual reports
- Model future scenarios to forecast stock performance
- Build relationships with clients and provide excellent customer service
Equity Research Analyst Job Requirements
An equity research analyst is someone who studies publicly traded companies and provides investment recommendations to clients. In order to become an equity research analyst, one must have a bachelor's degree in a field such as business, finance, or accounting. Some employers may require that candidates have a master's degree. Certification is not required, but it may give candidates a competitive edge. Equity research analysts typically have 1-3 years of experience working in the financial industry.
Equity Research Analyst Skills
- Analytical skills
- Financial analysis
- Financial modeling
- Excel
- Bloomberg
- Equity research
- Financial statement analysis
- Company analysis
- Industry analysis
- Competitor analysis
- SWOT analysis
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How to become an Equity Research Analyst
To become an equity research analyst, one must first complete a four-year undergraduate degree. Many analysts have a degree in business, economics, or accounting. After completing an undergraduate degree, many analysts complete a Master’s degree in business administration or finance.
After completing an academic program, many equity research analysts complete on-the-job training. Many firms require their analysts to become certified financial analysts (CFAs). The CFA designation is granted by the CFA Institute and requires passing three exams.
Once an analyst has the necessary education and training, they can begin working in the field of equity research. Equity research analysts work for banks, mutual fund companies, and other financial institutions. They conduct analysis on publicly traded companies and provide recommendations to their clients.
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