MBA Job Profile: Equity Research Analyst
Many MBA students interested in a finance career think of working in corporate finance, commercial banking, financial planning, or investment banking. Rarely do they consider the more mathematically-inclined, analytical options. However, a career in equity research can be a top career choice for many finance students. It’s a valid career option for someone who is less interested in sales and communication and more interested in research, analysis, and strategy.
So, what exactly is an equity research analyst?
An equity research analyst helps analyze stocks so that portfolio managers can make better-informed investment decisions. They research companies, look at share prices, and issue recommendations on investments and M&A deals. Sometimes considered the un-glamorous and lower-paid cousin to investment banking, equity researchers are great problem solvers tasked with developing screening tools and investment models to help manage portfolios.
To be a great equity research analyst, you’ll need to be able to:
- Identify patterns in the marketplace.
- Interpret data to understand and predict a security’s behavioral outlook.
- Quantitatively analyze a stock’s statistical data compared to recent market activity.
- Create algorithms that identify stock investment opportunities.
- Understand the differences between international markets to cross-compare domestic and foreign stocks.
Equity research analysts begin their careers with a lot of financial modeling and analysis of a specific sector or group of companies. There is typically limited buy-side client interaction or interaction with top management. However, over time, your responsibilities will evolve to more report writing and formulating investment opinions and theses.
Equity Research Analyst Work/Life Balance
While an equity research analyst works long hours—typically 12-hour days—that’s nothing compared to investment banking. You may have busy seasons and times, but for the most part, your job will be relatively calm and offer some work-life balance.
Equity Research Analyst Career Advancement
However, the equity research analyst career path is less defined. You’ll generally start as an analyst for a few years before moving up to senior analyst, vice president, and then director of research. But that can be a slow process because you’re not considered as essential to the bottom line as the firm’s investment bankers.
Equity Research Analyst Salary Expectations
According to Payscale, the average equity research analyst salary is $77,901 a year with a $19,851 bonus. However, the actual range is between $53K and $143K with the largest and most prominent firms offering the highest salaries. Glassdoor’s average base salary is closer to $94,383 with analysts at J.P. Morgan earning $101,327 and Goldman Sachs analysts earning $99,699.
The majority of equity research analyst jobs are located in major metropolitan areas such as New York City, Chicago, Boston, and San Francisco, which means cost-of-living should be considered. You’ll find the highest-paid positions at private equity firms and other large financial services institutions.
Getting Started
At the minimum, you’ll need a bachelor’s degree to become an equity researcher and typically start out as an associate. Even then, a bachelor’s degree is typically not enough to get you a job at a top investment firm. Instead, you’ll need either a CFA designation or an MBA.
The CFA is mandatory for security analysis and can be earned more quickly and cheaply than an MBA. However, with an MBA you’re more likely to have the professional network you need to earn a position at a top investment firm.
Top MBA Programs for the Job
Since a career as an equity research analyst is closely linked to investment banking, the top MBA programs are fairly similar. A few solid MBA program choices include:
NYU Stern
NYU Stern is a top school for a career in investment banking and equity research. The banking specialization covers risk management and other related topics with classes such as credit risk, valuation, and risk management in financial institutions. There is also a quantitative finance specialization specifically for more mathematically-inclined finance careers. You’ll learn stochastic processes, statistics, and applied economics.
Columbia Business School
At the Columbia Business School, the Investment Banking Club provides an opportunity to learn investment banking and recruiting, helping students develop strong relationships in the industry. There is also a specific Equity Research Club, which is designed to educate, inform, and bring together Columbia MBA students interested in this career field.
University of Chicago Booth
The Investment Banking Group at Chicago Booth is equipped to help MBA students learn about the investment banking industry. The goal is to guide students to landing a successful career at an investment bank. There’s also an Analytical Finance concentration designed for students interested in risk management, equity research, and more. Classes include Advanced Investments and Advanced Models of Option Pricing and Credit Risk.
Georgia Tech’s Full-Time MBA Recruiter Answers Our 5 Questions
In our latest installment of the MetroMBA “5 Questions” series, we speak with Amy Hayes, Full-Time MBA Recruiter at the Georgia Tech Scheller College of Business. Hayes talks about what makes an ideal Georgia Tech MBA candidate, what to know before applying, and much more, below.
1.) What Advantages Does a GT Scheller MBA Have Compared to Other Offerings in Georgia?
“What makes Georgia Tech Scheller College of Business stand out is the way our curriculum and experiential learning opportunities explore the intersection of business and technology. Many of our students do come from a technical educational and professional background; however, we have nearly as many who don’t. All students are looking to address gaps, in technology or business acumen or both, to prepare to pivot into a new career or to gain a better framework for decision-making. In other words, our program is approachable no matter your background is. Our aim is to produce MBAs who understand how technology drives innovation in any industry. A general understanding of technology’s power is vital to any role. While many of our students take a broad approach to our flexible curriculum, we offer concentrations in seven functional areas and nine interdisciplinary areas that often draw students into our flagship coursework in Business Analytics, Strategic Sustainability, Marketing, Supply Chain and Innovation.
Additionally, Scheller is located not just in Atlanta, but specifically in Midtown Atlanta’s Technology Square. Our students benefit from an innovative ecosystem comprised of major global corporations, emerging tech companies, and many corporate innovation centers strategically placed to draw from Georgia Tech talent. This location positions students well with opportunities advantageous for networking. Among our extraordinary 12 practicum offerings, students are not only partnered with companies based outside of Atlanta (including Nike, IHG, Bank of America, Samsung, AT&T) but also work with neighboring businesses where there is opportunity to meet face to face regularly with executives of these organizations (including Coca-Cola, Delta Air Lines, The Home Depot, NCR).”
2.) Is There a “Perfect” Kind of Candidate That Fits the School’s MBA Mold?
“Actually, we prefer to look at how a candidate can break the mold. What is it about your experience, your background, your career goals that will bring a diverse perspective to our program? Sure, we aim to bring in students who can be successful in the classroom and who we can successfully serve in terms of career placement, but I feel lucky to get to recruit prospective candidates with different stories and unique individuals to Scheller. Given our small program size of around 160 students, we have a tight-knit, collaborative community that commands intentionality in finding bright candidates with good character, great personalities, open-mindedness, and willingness to help others. I’m certainly held accountable by our current students to uphold our values in the recruiting process, and I wouldn’t have it any other way. I love that they have a vested interest in who they will work and play alongside!”
3.) What Would You Say Students Need to Prioritize the Most Before Applying?
“I think as much as anyone dreads standardized testing, applicants should know that your performance on the GRE or GMAT is the one application area you can impact the most. Transcripts from undergrad are set in stone, and your work experience is what it is. Intentionally preparing for the GRE or GMAT and planning to test multiple times will not only help you achieve better results for admission and funding but might also set you up for better job placement as some industries will evaluate these scores in recruiting. When considering full-time MBA programs, it’s best to approach the testing phase with determination instead of dread.”
4.) What Would You Say Applicants Need to Worry Less About Before Applying?
“My recommendation is to worry less about exact courses you will take and mapping your MBA experience out before you get here. Having some degree of clarity about career goals and how certain classes or experiences within a program will help you get there is great to highlight in essays and interviews, but you should also be open-minded. Curiosity is a very attractive quality when we’re evaluating candidates at Scheller; and, I’m sure many programs would say the same. You’ll receive wonderful advising when you get to our program pertaining to curriculum and career goals. We find our candidates who are flexible and join clubs or take classes in areas they didn’t know they’d be interested in have the best experiences and see the most success in the long run.”
5.) If You Had to Choose One Book for a Potential GT Scheller MBA to Read Before Enrolling, What Would It Be?
“I would recommend Grit: The Power of Passion and Perseverance by Angela Duckworth. It would be beneficial both in applying to business schools and in preparing to start business school as it contends that the best thing to arm yourself with is resilience. The application process is a journey in finding the best fit for you and you might have disappointments and new information coming to you that could shift the course you’ve charted for yourself. Your “dream school” might change. And, your business school journey might bring big challenges early on as you navigate the transition back into the classroom, are tested in your quest for a summer internship, and enter a world in which feedback freely flows from your classmates, career advisors, faculty, and even acquaintances. Your MBA experience will stretch you, but the return on your hard work will come in the ability to receive coaching and the perseverance you’ll carry with you throughout your career.”
Where Should I Work: Apple vs. Samsung
Apple and Samsung are two of the premiere mobile phone and technology companies in the world. But from the outside, it may be tough to gauge what sets them apart as employers.
Continue reading…Top MBA Recruiters: Estée Lauder
An Estée Lauder career may not sound like a typical business person’s goal, but let me tell you: Beauty sells.
Continue reading…Duke Fuqua MBA Class of 2019 Beats Hiring Records
The Duke Fuqua MBA Class of 2019 had a record year for hiring. Within three months of graduation, 97 percent of the class had received job offers with 95 percent accepting, which, according to the associate dean of their Career Management Center, Sheryle Dirks, marks the highest percentages in at least twenty years. The median annual base salary also rose 8 percent from the previous year to $135,725. But that’s just scratching the surface of the Duke MBA Employment Report for 2018–19.
Continue reading…Where Should I Work: Deloitte or Ernst & Young?
Deloitte and Ernst & Young (EY) are considered two of the “Big Four” accounting firms. Along with KPMG and PwC, the Big Four naturally attracts top MBA talent looking to put their degrees to use in a variety of tax, accounting, and consulting services.
Continue reading…