Equity Research Analyst Job Description

Equity research analysts create reports, conduct research, analyze financial information, and make predictions regarding financial matters. Equity research analysts are analytical and methodical. They typically work full time for companies in the finance industry. Equity research analysts may be required to work overtime or on weekends depending on the needs of their employer. This job involves drafting many reports and presenting findings in meetings, so strong communication skills are essential to this position. Equity research analysts should also be proactive and comfortable working independently.


Equity Research Analyst Duties and Responsibilities

Specific job duties for equity research analysts vary based on their employer. However, there are several core tasks common to all equity research analysts, such as:

Analyze Financial Information

Equity research analysts analyze financial information and conduct analytic and strategic research. In order to meet client needs, they provide support to research teams.

Create Reports

Using information from their research, equity research analysts make reports based on their analysis of financial statements.

Attend Meetings

Responsible for communicating key recommendations and findings, equity research analysts attend meetings and give presentations about financial information. They also present their financial predictions.

Generate New Investment Ideas

Equity research analysts synthesize data to come up with new investment ideas and make recommendations about financial actions and decisions.

Evaluate Risks and Opportunities

In their research and analyses, equity research analysts evaluate risks and opportunities. They communicate these to their clients and make recommendations as necessary.


Equity Research Analyst Skills and Qualifications

Equity research analysts are analytical thinkers who conduct extensive financial research. Most employers typically require equity research analysts to hold a bachelor’s degree in business, finance, economics, or a similar area of study. Employers also prefer candidates to have three to five years of experience conducting research in the investment industry. In addition, the following skills and qualifications are essential to the job:

  • Communication skills – equity research analysts attend meetings and make presentations about their research. This position requires strong communication skills in order to work with clients
  • Consulting experience – equity research analysts provide financial information to clients. They offer innovative approaches and solutions to problems
  • Proactivity – the ability to work independently is necessary for this position. Equity research analysts are proactive and can work under limited supervision
  • Valuation analysis – after conducting research, equity research analysts make valuation analyses to estimate the worth of businesses
  • Analytical thinking – equity research analysts need strong analytical skills to conduct research and make predictions about company finances. They identify important factors that affect company performance, and they base their forecasts on these relevant factors


Equity Research Analyst Education and Training

Most employers prefer equity research analysts to have a bachelor’s degree in business, finance, economics, or a similar area of study. In addition, employers typically look for candidates with at least three to five years of experience working in research within the investment industry. On-the-job training is provided to help equity research analysts understand the processes and needs of their employer.


Equity Research Analyst Salary and Outlook

The average annual salary for equity research analysts is $97,000. The lowest-earning 10 percent in this field make less than $65,000. The highest-earning 10 percent in this field make more than $158,000. Equity research analysts who are employed full time typically receive benefits such as vacations, sick days, company bonuses, health insurance, and retirement plan options.


Helpful Resources

Are you interested in entering a career as an equity research analyst? We’ve gathered some helpful resources to get you started:

Zacks Equity Research – this site provides relevant updates and articles about financial and industry news. Interesting information on the site includes financial reports from companies such as Facebook, Intel, and Boeing

Best Practices for Equity Research Analysts – written by James J. Valentine, who has managed analysts and associates at Morgan Stanley and developed programs worldwide, this book offers a wealth of information on the role of equity research analysts. Some topics covered include making stock recommendations, updating financial forecasts, and identifying critical factors

How to Get an Equity Research Analyst Job – written by Gillian Elcock, this comprehensive guide informs readers on how to land a job as an equity research analyst. Elcock offers insightful advice on which companies to target, how to master the interview process, and what the job entails. The book also contains helpful tips on creating an effective resume and preparing for interview questions

Unlocking Financial Data – author Justin Pauley advises analysts on using Microsoft Excel to interpret financial information. The book guides readers through the process of creating professional reports and also includes advice and information on a variety of matters ranging from creating tables and exploring prices to measuring portfolio risks and identifying important trends

“Confessions of an Independent Research Analyst” – this blog article, written by Douglas Kim, offers insight into the role of an equity research analyst. In this article, Kim outlines his career trajectory and offers key information and advice for those who work in this industry. A few helpful pieces of advice that Kim imparts in his piece include knowing your client, generating good investment ideas, and knowing your strengths and weaknesses


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