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.
Equity research analyst responsibilities
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:
- Financial Models, 14%
Constructed and maintained financial models, wrote company and industry-related research notes for publication, and attended industry and company-related briefings.
- Macro, 7%
Conducted macro & micro-economic analyses to identify market trends, industry conditions.
- Securities, 4%
Analyzed potential securities using fundamental analysis and valuation techniques such as Discounted Cash Flow and Relative valuation model.
- Equity Portfolio, 4%
Monitored current positions in equity portfolios and communicated relevant issues impacting stock holdings to portfolio managers.
- Equities, 4%
Perform bottom-up fundamental analysis covering U.S. and European equities focused on value.
- Fundamental Analysis, 3%
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. "
The three companies that hire the most equity research analysts are:
- Bank of America24 equity research analysts jobs
- JPMorgan Chase & Co.15 equity research analysts jobs
- Citi11 equity research analysts jobs
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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.
Finance professionals really shine in the insurance industry with an average salary of $57,846. Comparatively, equity research analysts tend to make the most money in the health care industry with an average salary of $118,182.The education levels that finance professionals earn slightly differ from equity research analysts. In particular, finance professionals are 16.1% less likely to graduate with a Master's Degree than an equity research analyst. Additionally, they're 0.0% less likely to earn a Doctoral Degree.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."
On average, investment associates earn a higher salary than equity research analysts. Some industries support higher salaries in each profession. Interestingly enough, investment associates earn the most pay in the technology industry with an average salary of $117,651. Whereas equity research analysts have higher pay in the health care industry, with an average salary of $118,182.In general, investment associates achieve lower levels of education than equity research analysts. They're 12.9% less likely to obtain a Master's Degree while being 0.0% more likely to earn a Doctoral Degree.What technology do you think will become more important and prevalent for equity research analysts in the next 3-5 years?
Paul Abbondante
Associate Professor, Finance, University of La Verne
Computer skills, other than social media, will be essential. Graduates will have to show that they can find and analyze information to help the company.
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."
Analyst interns make a very good living in the professional industry with an average annual salary of $41,723. On the other hand, equity research analysts are paid the highest salary in the health care industry, with average annual pay of $118,182.Most analyst interns achieve a lower degree level compared to equity research analysts. For example, they're 10.2% less likely to graduate with a Master's Degree, and 0.1% less likely to earn a Doctoral Degree.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. "
The government industry tends to pay the highest salaries for finance management analysts, with average annual pay of $85,442. Comparatively, the highest equity research analyst annual salary comes from the health care industry.The average resume of finance management analysts showed that they earn lower levels of education compared to equity research analysts. So much so that theyacirc;euro;trade;re 10.2% less likely to earn a Master's Degree and less likely to earn a Doctoral Degree by 0.3%.Types of equity research analyst
Updated January 8, 2025
