Equity Research / Research Associate
Equity research analysts work within the investment bank and are responsible for following industries, recommending stocks for the bank’s institutional clients to buy and sell. As a research analyst, much of your day will be spent on the phone with clients/investors and internal firm sale and trading professionals to pitch your buy and sell recommendations, discuss key trends, and specific issues about companies you follow. Included in the mix are meetings with buy-side or big money managers and companies in the sector you follow.
A key part of your job is to evaluate and scrutinize companies in the sector you follow to determine how industry trends, geopolitical issues, economic trends and more might positively or negatively impact a company’s performance.
- Perform core fundamental research on an industry and the companies that comprise it
- Model historical and projected financial statements such as detailed cash flow and ratio analysis
- Build relationships / service the firm’s clients via research notes, larger industry reports, and face to face meetings with management
- Vet, conduct due diligence and sales and investor education on firm’s new offerings
- Work in tandem with sales force and sales and trading desk to interpret breaking news, market/develop communications with clients via published research, marketing events and corporate access
- Work with the sales and trading desk to generate trade ideas and strategies, including solutions for managing client risk
- Write and publish notes / large reports focused on company and industry trends
The skills of an equity research professional include deep industry knowledge (of the sector / area of coverage), technical skills for identifying trends and selecting stocks, as well as “soft skills” such as verbal communications, presentation skills and extensive writing. Often, career transitioners coming into finance who have expertise with operating companies in the sector/area of research coverage (such as healthcare, biotechnology, software, telecommunications, consumer products, and more) are able to leverage their cross-industry experience for success within the profession.
