Equity Analyst Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of an equity analyst. Feel free to use our equity analyst job description template to produce your own. We also provide you with information about the salary you can earn as an equity analyst.
Who is an Equity Analyst?
The financial sector offers various jobs to people with a variety of backgrounds and interests in spending and money management. A good example of this job is the Equity Analyst’s profession.
Equity analysts are financial experts in charge of conducting research. They keep track of the market for stocks and the economic condition of their clients to help them make the most appropriate financial decisions for the company.
An equity research analyst analyzes the financial data of businesses to help them invest in profitable ways. Equity research analysts may be employed on either the buyer’s side of transactions in finance or the seller’s side. Both jobs have distinct working environments. For instance, analysts who specialize in equity and concentrate on the buy-side could be employed by an investment firm or wealth administration company. On the selling side, they typically work for brokerages or banks where they can report their findings to sales representatives.
Equity research analysts can assist clients to make informed financial decisions based on forecasts as well as financial models. They can also conduct large amounts of market research to discover trends and make profitable investment opportunities.
Equity analysts study and analyze companies to assess a company’s total value. Analysts determine the total financial worth of a business by analyzing the financial statements and conducting interviews with the company’s management and other industry experts. Equity analysts are generally employed by investors who require solid investment expertise.
Banks, securities firms as well as insurance firms all rely heavily on equity analysts. Analysts determine the worth of a business and its value, the research conducted by an analyst could also be used to determine if companies are considered to be investment risks.
They examine and keep an eye on their employer’s or client’s financial status to determine the worth of its stock. The equity analyst also provides businesses with a complete picture of their financial health as well as their position in the market. The data they gather will also assist companies in making informed investments in the future, based on their current situation.
Equity analysts collaborate directly with clients to learn the financial objectives they have, and the methods they want to use to accomplish these goals. They establish what they require from an investment, and the amount they’re willing to take on to achieve those gains. Equity analysts generally operate in offices however, they can visit client offices to talk about business.
Alongside assessing the value of a company’s financial status, equity analysts also look at the value that the future holds for an organization. Determining a company’s future financial worth depends based on financial statements, sales prices for commodities, costs, and tax data. Analysts are also frequently in contact with management to get a clearer financial view.
When studying a particular sector as a whole, an equity analyst will gain an extensive understanding of a specific company. Comparing different companies in the same industry can provide analysts with an entire financial picture of a particular sector. This will assist in creating a comprehensive business profile.
Additionally, an equity analyst must be up-to-date with the latest trends in a specific sector. Being aware of the current economy of a nation is an essential element of the work of an equity analyst. While a substantial part of an analyst’s job involves reviewing statistical data printed on paper and financial data, financial software is extensively employed.
When the equity analyst collects all the information that could be relevant to an organization, he/she can compile a comprehensive report. When the report is complete, the presentation is usually provided to the company. The data contained in the presentation will help determine if the business is a sound financial investment.
In terms of education, equity analysts typically have an accounting background. Some analysts have a Master of Science in Finance or a Master of Business Administration. Alongside the proper education, many analysts have plenty of work experience.
Equity Analyst Job Description
Below are the equity analyst job description examples you can use to develop your resume or write an equity analyst job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
The duties and responsibilities of an equity analyst include the following:
- Analyzing financial data to discover the latest investment opportunities
- Conducting research on financial activities by conducting calls taking surveys, and keeping track of changes in the market
- Applying economic theory to determine the possibility of generating returns from particular investments
- Making research reports for sharing with clients regarding the analysis of data and possible outcomes in financial decisions
- Getting financial information from corporations, public businesses, and other sources
- Examining the financial position of a firm to identify the types of transactions that could boost its earnings
- Utilizing financial models to make valuation
- Sharing information with investment managers to aid their decision-making
- Making forecasts for future financial results using top-down and bottom-up techniques
- Recommending the investment to clients based upon the possibility of high returns
- Transferring information to sales representatives to use for marketing purposes
- Studying the trade of specific companies on stock exchanges, and regularly write about the findings from the same.
- Maintaining a complete list of companies’ coverage and keeping track of all developments affecting those companies.
- Studying and analyzing cash flow statements as well as income statements, and balance sheets for publicly traded domestic and foreign companies.
- Calculating financial ratios and doing calculations on exchange rates.
- Creating key industry trends and due diligence for companies working in conjunction with the Head of Research.
- Conducting ad hoc analysis as directed by the Research Head.
- Conducting research that is fundamental to particular companies and industries and assists in making precise and timely investment advice.
- Establishing, maintaining, and managing business relationships with managers analysts, sell-side analysts, and investor’s community colleagues.
- Participating in conferences for industry or on-site visits to gather relevant information from the ground and aid in enhancing the investment process.
- Developing financial models that accurately reflect the overall performance and their valuations to aid in making sound investment decisions.
- Controlling the performance of the portfolio companies and providing timely information on the individual companies.
- Assisting in research and periodic publications.
- Reviewing and updating basic and advanced valuation models.
- Developing, maintaining, and reviewing the general and specific market, industry, and company overviews.
- Studying and analyzing specific financial details of a company, as well as the fundamentals.
Other crucial tasks include:
- Meeting with customers
An equity analyst might meet with their employer or client on a weekly, daily, or monthly basis. During these meetings, they will discuss the client’s financial goals, their risk propensity, and any doubts they might face in the future. In these meetings, the equity analyst can give client-specific reports that outline the state of their market along with the fiscal health of the firm. They could also offer suggestions on which investments are likely to yield optimal results for the client, based on their analysis of the competition, data, and stocks.
- Monitoring market conditions
Equity analysts also maintain constant surveillance of the stock market and the financial sectors their clients are part of, collecting data that they can utilize as a basis to give advice when they meet with clients. Analysts conduct their research where they gather information about the current financial condition of the market, economic sector, and client and deciding what direction to take when it comes to future investment decisions. It is their responsibility in keeping their clientele as up-to-date as is possible regarding any developments or forecasts related to the financials of their business or their industry.
- Creating reports
In addition to their analysis as well as monitoring markets, equity analysts create detailed financial statements for their clients, describing the different trends, changes, and forecasts pertinent to their particular industry. They can also include tables, graphs, and financial models which provide the analyst as well as their clients with reliable information to use when making partnership and investment decisions. They could produce reports on certain areas, such as a particular business to draw comparisons and make conclusions about various financial scenarios.
- Informing sales colleagues
Equity analysts work in tandem with sales representatives, particularly when working as internal staff members for an organization. Sales representatives must have current information regarding the latest economic trends and how their business fits in to the economic situation. Sales representatives are usually those who make contact with investors who are interested in making agreements, therefore it’s essential to give their prospective customers up-to-date information that will increase their likelihood to join their business.
Qualifications
- Bachelor’s degree in finance or management, or a related field
- Minimum of 3 years of experience working as an equity analyst in a similar sector.
- Expertise in the field of industry-related securities including bonds and stocks.
- The ability to identify and follow developments in the market, and then act upon investment opportunities.
- Expertise in platforms for financial services, such as Bloomberg as well as Capital IQ.
- Experience with software for modeling data and methods.
Essential Skills
- Analytical skills
One of the most essential skills an equity analyst should possess is the ability to think analytically since they spend their time gathering information and conducting research to analyze and draw conclusions about markets. This helps them to give their clients accurate and current information that they can utilize to make financial and investment decisions.
- Communication skills
This is an essential capability for jobs across a range of industries. As equity analysts communicate with clients as well as colleagues, it is crucial to ensure completeness and transparency in financial issues. Equity analysts communicate via phone, email, or in-person with clients to discuss investment opportunities and inform their sales colleagues about business finances and market trends.
- Customer service
Customer service is an essential aspect of being an effective equity analyst, particularly for those who advise clients on a personal basis instead of whole corporations. Equity analysts must focus on the needs and questions of their clients, by responding to their calls and questions promptly and making the effort necessary to reach their objectives.
- Knowledge of financial matters
Equity analysts are expected to be informed about the current state of the market and how they can make use of these conditions to help their clients. As a financial professional, being knowledgeable about various methods of forecasting, financial models, and competitors in the industry can help both the analyst and clients with useful information when investing.
- Attention to details
This skill is essential for equity analysts as they are constantly monitoring even the smallest changes in forecasts and market trends. If you are an internal employee of corporations, paying specific attention helps identify opportunities for selling or investing that could yield substantial profits on behalf of their clientele.
How to Become an Equity Analyst
- Earn a bachelor’s degree
The first step to getting into the field of equity analysis is earning an associate’s degree. Many candidates who would like to pursue this career opt for majors in areas like economics or finance. They may also pick an area that is closely related to it, such as accounting, business, or administration. These kinds of courses can give students a thorough education on financial concepts and techniques to evaluate data on the financial markets. They also permit students to create and test a range of research methods.
- Apply for a position as an associate researcher
After earning a bachelor’s degree from a university, students may begin searching for a research associate job. The majority of those who want to become equity analysts can pursue these positions straight from school since they can receive education and gain experience in research. There are usually many opportunities for researchers in a variety of fields. However, it’s best for those seeking an associate research position in an institution that deals in finance. This will ensure that the candidate will develop the abilities they require in financial analysis and the analysis of financial information.
- Consider a master’s degree
Although having a master’s level degree is not mandatory for equity analysts, it does improve their chances of getting higher-level jobs. This is because master’s degrees can provide candidates with greater expertise in their field of research. For equity analysts, it could be most beneficial to study finance or business administration to further develop the concepts they are taught in their undergraduate studies. After completing a master’s program, they are likely to be considered for higher-level posts.
- Seek certification
Most equity analysts receive recognition when they join the industry. This will highlight the candidate’s skills and demonstrate to employers that they put in the effort to complete formal training and improve their abilities.
Where to Work as an Equity Analyst
Most equity analysts have jobs with brokerages as well as financial companies. They can also be employed by equity firms, private banks, and investment companies.
Equity Analyst Salary Scale
The average national earnings for an equity analyst working in the United States is currently $88,166 per year.